Dr Boyce Watkins: Nas and His Tax Problems – What We Can All Learn

by Dr. Boyce Watkins, AOL Black Voices 

Hip Hop Wired is reporting that the rapper Nas is having some serious financial problems. In addition to owing his wife Kelis $44,000 per month in child support, it turns out that the artist also owes the federal government another $2.5 million in taxes. Here are quick thoughts about Nas, love and money:

1) Nas has a complicated life. His decision to marry the "love of his life" is going to cost him for the rest of his life. The rapper's tax situation could be due to irresponsibility (as appears to be the case with Method Man and Nicolas Cage), or it could simply be a matter of using write-offs that were not allowed by the IRS. We can't assume that Nas' tax trouble automatically makes him into a horrible citizen.

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American Express CEO Says Disaster was Averted in Money Crisis

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American Express CEO Ken Chenault says disaster was averted in the financial crisis - do you agree?

Economic News: Entrepreneurs Create their own Economic Recovery

Back in August, Federal Reserve officials suggested that the Great Recession was ending and the U.S. could expect "a gradual resumption of sustainable economic growth." But even with stock market indexes and the bottom lines of large financial firms bouncing back, small businesses can expect a longer slog to economic health.

"Small business performance is a lagging indicator of recovery in the same way that unemployment is," says Villanova University business school professor John Pearce II.

And it's likely that small businesses will find this recovery even slower than previous ones. The downturn has especially hurt construction firms, retailers and food service providers, the vast majority of which employ fewer than 20 workers. To make matters worse, more than 110 banks have failed since early 2008, most of them community thrifts catering to the financial needs of local firms.

 

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Eddie Griffin’s New Show – What it Teaches Us about Money…Nothing

by Dr. Boyce Watkins, Syracuse University, Your Black World 

I had a lot of fun watching the new Vh-1 show, "Going for Broke," starring comedian Eddie Griffin. Griffin is one of the funniest comics in America, the comedian that Chris Tucker could have been (if he would simply stop disappearing between Jackie Chan movies).

On the show, Griffin gives insight into his personal life, which is both intriguing and disturbing. The show is called "Going for Broke" for a reason, because Eddie just might actually get there.
Here are some reasons that Eddie Griffin might actually become the broke celebrity that he is trying to become:

1) He spends like a damn fool. One of the easiest traps for an entertainer to fall into is the "infinite money trap." That's when the person thinks that they've got an endless supply of cash, giving them ability to spend whatever they want on whatever they want. Apparently Eddie may have fallen into this trap, since his Bentley was being repossessed in an early episode of the show. Eddie's conversation with his accountant was also revealing, as the words "all the accounts are empty" seemed to strike him hard. With all the success that Eddie Griffin has had, it is difficult to imagine that he would be completely broke. But the truth is that this kind of thing happens all the time.

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Economic News: Senate Could Vote to Extend Jobless Benefits

from AOL Black Voices 

With U.S. unemployment rising, lawmakers hope to resolve a logjam this week on a measure that would extend jobless benefits for those who already may have exhausted them, Senate aides said on Tuesday.

Congressional leaders had hoped to extend benefits before the end of September, when some 400,000 recipients were expected to use them up. But while the House of Representatives last month passed a bill, jobless benefits legislation stalled in the Senate due to a dispute over how many workers should be eligible.

While some details remained unresolved, the measure could come up for a vote in the Senate within days, said an aide to Democratic Senator Jeanne Shaheen, who argued that the legislation was too narrowly targeted.

Shaheen objected to legislation passed by the House that would extend benefits for jobless workers only in states where the unemployment rate is above 8.5 percent. The unemployment rate was 6.8 percent in August in Shaheen's home state of New Hampshire.

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Fenorris Pearson Explains How to Find a Mentor in your Company

by Fenorris Pearson, CEO – Global Consumer Innovation, Inc. 

Even when I was a Vice President at Dell Computers, one of the most cutting edge companies on the planet, our problems remained the same. The variables changed, but the bottom line always came down to figuring out how to sell to one customer at a time. Reaching this critical objective becomes more complex as technology changes and the world becomes more advanced. As complacent as we’ve gotten with new technology and global opportunities, this much has become clear: what got you here won’t get you there. In fact, what positioned you here, might not even keep you here…

…At least, not without a sponsor.

These days competition isn’t just stiff, it’s rigid. You need every advantage you’ve got, particularly if you’re a recent grad, female or minority. Think hard work, an MBA and a well-rounded resume will get you to the top? Think again; that might be what got you here, but to get there – the proverbial corner office or CEO’s chair – you’ll need more than just a spotless resume and a 4.0 GPA; you’ll need a sponsor.

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Financial News: Consumer Bankruptcies Soar During September

Consumer bankruptcies soared 41% from the previous September and climbed from August, as high unemployment and the housing market crash took their toll, the American Bankruptcy Institute said Friday.

September filings totaled 124,790, the fourth-highest month since the bankruptcy law changed in 2005.

Filings also rose 4% from August, even as recent reports indicated the housing market might be stabilizing and consumer confidence appears to be recovering.

September's filings pushed 2009 consumer bankruptcies to 1.05 million, the highest for the first nine months of a year since 1.35 million in 2005.

The American Bankruptcy Institute said it expects consumer bankruptcies to climb to more than 1.4 million this year.

The U.S. unemployment rate rose to a 26-year high in September at 9.8%, according to government statistics released on Friday.

 

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Financial News: Ebony and Jet Suffer Serious Financial Woes

 

by Dr. Boyce Watkins, MSNBC’s TheGrio.com, Your Black World, AOL Black Voices 

 

The black journalism students here at Syracuse often come to me to find out how the industry works. They sometimes instinctively wonder if their professors' stories about being in a CBS newsroom in 1982 are going to help them survive in a world run by Twitter, Myspace and Facebook. The answer is a resounding "probably not."

While respecting the journalism professors teaching their classes, I simply use examples like Ebony Magazine to help them realize that black media is changing, and sites like theGrio.com, BlackVoices.com, and TheRoot.com, are examples of how black media has evolved. In fact, a journalist who doesn't understand technology and business models is in danger of starting his/her career as a dinosaur.

When it comes to recent reports about Ebony Magazine being offered for sale, I admit that I was saddened, but not surprised. The Ebony Fashion Fair has become one of the most celebrated events in black America, and the magazine has been nothing less than a tremendous source of national pride since its creation in 1945. But in the age of the web, oversized bureaucracies can be crushed under the weight of their own arrogance. Bloated payrolls, pompous corporate functions and a sense of entitlement make them easy prey for quick, hungry and rapidly evolving competition.

In spite of the tremendous love we have for Ebony/Jet, the truth must be confronted when realizing that it is what radio was to TV or what the train was to the airplane. Like radios and trains, there is still a place for print media, but that role is no longer dominant. The current economic climate only accelerated the inevitable, since advertisers were eventually going to stop spending $50,000 for magazine ads when they can buy the same number of eyeballs for $5,000 or less.

I present the following 5 questions I'd like to ask out loud about both Ebony Magazine and the state of African American media:

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Visit Your Black World for the latest in Black News

Dave Ramsey Talks about Term Life Insurance

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The Cheapest Car in the World

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Financial Alert: No Property Insurance Can Leave You Bankrupt

Your Black World, AOL Black Voices 

Most of us know very little about the ins and outs of property insurance. Christopher Chestnut is not in that category. As a prominent attorney out of Florida, Mr. Chestnut has taken on multi-million dollar cases and handled some of the most complex lawsuits imaginable. As one of the leading young black attorneys in America, Chestnut has been recognized by President Obama for his outstanding accomplishments.

I spoke to Chris this week about Property Insurance and what it can do to make your life a little simpler. Here is what he had to say:

1) If you rent, make sure you have renter's insurance. Also, make sure your landlord has homeowner's insurance, since renter's insurance only includes the contents that are INSIDE the house

2) Check your landlord's insurance regarding injuries on your rented property. Most people are unaware of the fact that the homeowner is liable in the event that someone is injured on their property. Even if the children across the street climb the fence to get into your yard, you are liable if one of them gets hurt. Find out how your landlord's homeowner's insurance would cover you if someone has an accident.

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Dr Boyce Watkins: Don’t Kill Tavis Over Wells Fargo

by Dr. Boyce Watkins, Your Black World, AOL Black Voices 

When I read about the predatory lending allegations against Tavis Smiley and Wells Fargo, I wasn't surprised. Not because I feel that Tavis is some kind of crook, but because economic downturns are usually when everyone's dirty laundry gets aired out. The high flying 2000s were a decade of extravagance, overspending, easy money and troubled relationships. The party was bound to end. Smiley's party has ended with Wells Fargo, as the company has been accused of using Tavis Smiley and financial expert Kelvin Boston to convince African Americans to sign on to loans that turned out to be predatory. Neither Boston nor Smiley is willing to disclose the amount they were paid for the service, but I'm sure it wasn't chump change.
I've been open and honest in my critiques of Tavis Smiley in the past, but I give credit where it's due. I've always felt that Tavis Smiley is a man who works out of a sincere respect and appreciation for the black community. He is not out to hoodwink, swindle or hurt us, at least not deliberately. At worst, Smiley is guilty of being caught in a situation that he may not have fully understood.
Although I agree with the black community's decision to hold Tavis Smiley accountable for his actions, I want us to be cautious of going overboard in our judgments. Here are 5 things I want to say about Tavis Smiley:

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Dr Boyce Money: Obama’s Slam to Wall Street

by Dr. Boyce Watkins, Syracuse University 

The president recently gave an interesting address to Wall Street on the anniversary of the start of the financial crisis which began last year (and also got him elected). One year ago, the fall of Lehman Brothers left the nation scrambling to find ways to secure critical liquidity to a financial market that was on the brink of devastation.
In his speech, the president wasn't nice. He received applause from the audience only one time, so they don't like him as much as black people do. What's also clear is that he's not President Bush: Wall Street doesn't want Barack Obama to be president, but he is exactly what they need right now.Our banking system is ranked 108th in the world in terms of stability, behind Tanzania. What's even more frightening is that while being incredibly reckless, our banking system is the most powerful in the world, driving the strongest economy on earth. We can't afford to be silly or irresponsible.
The president focused his conversation around three key adjustments:

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Boyce Watkins on ABC News – Love, Money and Sex

by Dr. Boyce Watkins, Syracuse University

I recently appeared on ABC News to talk about Financial Lovemaking, and the link between sex and money. I've discussed relationships and money several times on AOL in the past, but I think that I should quickly lay out some very interesting similarities that may not have crossed your mind. As I teach my Personal Finance Class at Syracuse University this semester, I am reminded that managing our money is linked to managing our love, which is critical to the ultimate goal of effectively managing our lives.

1) Many people think about both sex and money every single day. Don't lie, you know you enjoy thinking about sex, even if you aren't getting any. But chances are, you also think about money, whether it's figuring out how to get what you need or how to keep what you've got. Even most rappers spend all their time talking about either sex, money or how they use their money to get more sex. It's actually a universal concept.

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Playing the Corporate Game at the Top: A CEO Gives Advice

 

by Fenorris Pearson

How is the game played at the top? How do you get there and, once there, how do you stay put? And how, in these trying times where jobs are hard to come by and competition is stiffer than ever, can you ever hope to achieve such lofty goals? These are not questions to ask at the end of a career but at the beginning; these are thoughts to have not upon reflection during your retirement dinner but before deciding to ask for that promotion, leapfrog to another successful company or capitalize on the success you’ve already experienced.

Before starting my own business I was Vice-President of Global Consumer Innovation for Dell, Inc., the 35^th largest corporation on the Fortune 100 list. Prior to joining Dell, Inc., I was Vice-President of Global Organizational Development for Motorola, Inc. Motorola, Inc. is a Fortune 50 global company with revenues over $40 billion. If there’s one thing I’ve learned on my journey to corporate success, it’s this: The rules are different at the top.

Actually, the rules are very different at the top; there is little slack and even less room for errors. Smart people like to work with smart people and don’t suffer fools gladly. When cutting edge technology, name players, new products and billions of dollars are on the line, there is no room for sleepwalkers, jokers or phoning it in. Top performers get to the top by bringing their A-game every time, but now even that isn’t enough.

Today, more than ever, with layoffs a predictable morning headline and gold-standard companies like Circuit City, Steak & Ale, Linens and Things and Sharper Image shutting their doors in 2008, if you’re not firing on all cylinders, you won’t get in the door, let alone into that corner office. Regardless of the tight economy, or perhaps, because of it, companies are still hiring; but only the best. Companies are still promoting but, again, only the best. If you are looking for that entry-level job you can have it; if you have already been working in corporate and want that big promotion you can get it – but not by coasting into position. Rewards come quickly and are still great, but you will have to come fully prepared to work at the top of your game; every day, every time. How?

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News: Dr. Boyce Joins the Al Sharpton Show

Dr Boyce Watkins of Syracuse University and founder of the Your Black World Coalition is now slated for a weekly segment on "Keeping it Real with Al Sharpton."  The show is currently syndicated in 18 cities across the nation and adding new affiliates each week.  Every Monday from 1:15 - 2:15 pm EST, Dr. Watkins and Rev. Sharpton will discuss political issues of the day and matters affecting our nation.  To find out more about the show, please visit www.SharptonTalk.net or www.BoyceWatkins.com.

To see Dr. Watkins' latest articles with MSNBC's "TheGrio.com", please visit this link: http://www.thegrio.com/author/dr-boyce-watkins-1/

To see Dr. Watkins' latest work with AOL Black Voices, please visit: http://blogs.blackvoices.com/bloggers/boyce-watkins-phd/

To listen to Dr. Watkins' last conversation with Rev. Sharpton, please click here.

In light of President Obama's recent announcement that African American education should be a top priority for Black leadership, Dr. Watkins will be speaking with Rev. Sharpton, Rev. Jesse Jackson, Dr. Marc Lamont Hill and other African Americans on ways to directly challenge the astronomical dropout rates for African American students.  Many of these issues are addressed in Dr. Watkins' book, "Everything You Ever Wanted to Know About College."   To start the academic year, Dr. Watkins will be distributing free e-copies of this book to members of the Your Black World Coalition during the month of September, 2009.  We will also be reaching out to President Obama to offer support in solving this problem, for we firmly believe that managing the dropout rate is one of the keys to saving our great nation.

For more information, please visit www.BoyceWatkins.com.

Dr B: The State of our Economy

by Dr. Boyce Watkins, Syracuse University 

The economic downturn has hurt us all. Black unemployment has been nearly 70% higher than that for white Americans, and the blow is even greater for people of color, since there is less black wealth to fall back on during tough financial times. We must remember, however, that the global recession has literally led to starvation around the world, as there were many citizens who could barely buy food even during the good times.

The IMF's chief economist, Olivier Blanchard, says the global recession had "left deep scars, which will affect both supply and demand for many years to come." Blanchard also makes the additional point that economic models used to understand past recessions cannot be used to understand this one. When attempting to understand the cyclical nature of African American wealth, the models are even sketchier than they are for the rest of the world.

If you want to understand what happened to our economy, imagine you have a friend who appears to have the flu. The standard flu recovery time is going to be just a few days, so you expect to see them back at it within a week. They then go to the doctor, and it turns out that they have a sinus infection, extending the recovery period at least another week. But instead of coming back to work in 1 - 2 weeks, they are sick for an entire month. Well, this warrants another trip to the doctor, where you find out that the person actually has HIV. This changes the entire treatment strategy, since the short-term problems were nothing more than symptomatic triggers of serious long-term health issues. What's worse is that with or without serious intervention, the patient may never be completely healthy again.

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IMF Chief Says Economic Crisis is Complex, Slow to Recover

Olivier Blanchard, the IMF's chief economist

August 19, 2009

(RFE/RL) -- According to a new report by the International Monetary Fund (IMF), the world has begun to recover from recession but the process will not be simple. And sustaining any recovery will require refocusing the United States toward exports and Asia toward imports.
The IMF's chief economist, Olivier Blanchard, says the global recession had "left deep scars, which will affect both supply and demand for many years to come."
In a study released this week by the IMF, Blanchard describes the current economic difficulties as not a “run-of-the-mill recession.” He notes that models used to understand past recessions cannot be applied to this economic slowdown. 
Blanchard writes that there are two elements central to a sustained global economic recovery.
First, economies must move beyond their dependence on fiscal stimulus by national governments and inventory building by private firms. Such expenditures must sooner or later come to an end.
Second, international trade patterns should be rebalanced. The United States must export more and Asia must import more. This sought-for equilibrium would lower the enormous U.S. current-account deficit and the Asian current-account surplus. But rebalancing world trade flows is not going to be easy and will depend on a reordering of consumption patterns.

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Dr Boyce Money: Soulja Boy’s Bad Money Moves

In his video called "Rich N*gga Sh*t" (I can't even write the title, since I don't want to pollute the eyes of my readers. Maybe you can fill in the missing letters, like in the TV gameshow "Wheel of Fortune."), the rapper Soulja Boy has worked overtime to set an all-time record for massive hip hop buffoonery. But he's only 19-years old, so I am going to give him a pass in hopes that he will choose to wise up at some point.

Showing off his new diamond chain that doubles as a remote control toy Lamborghini, the young brother proceeds to wow his audience by pushing the limits of financial extravagance. I've seen rappers with chains shaped like the state of New York or jewels that have their names on them, but I have never seen a chain that doubles as a remote control car. When I saw his latest "achievement," I truly felt that he'd lost it. I am not here to say that Soulja Boy has not planned for his financial security, I really hope he has. At the same time, I've seen a ton of rappers get wads of dough, only to find themselves broke and spending their lives in the studio trying to create their next breakout hit. Let's be real: the industry is not here to empower the rappers - it is here to enslave them. Soulja Boy's comments about giving "big ups" to slave masters (for bringing black people to America) should have been saved for the slave masters in the recording industry who control his destiny right now.

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Black Women and Money: Tiny and Toya Tell a Story

by Dr. Boyce Watkins, Syracuse University

OK, was I confused when I found out that Tiny and Toya (TI's "baby mama" and Lil Wayne's ex-wife, respectively) were being given a reality show on BET? Yeah, I was a little surprised. If only I could find a way to become a high profile baby mama -- that seems to be the way to go. With my being a man, I guess that might be difficult to accomplish. All jokes aside, I watched this show with tremendous curiosity, as I think we can all learn from observing the thought patterns of those who live behind the scenes of our favorite celebs. Part of me feels sorry for both of these women, who seem to be desperately fighting their way out of the massive shadows being cast by the powerful men in their lives. Even the daughters of TI and Lil Weezy are trying to get their own reality show. Maybe they too are feeling the weight of their daddies' collective fame. Why don't we just give a reality show to the family dog? Now that would be hot!

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Black News: Free from Power 105 Talks to Dr. Boyce about Financial Lovemaking

Dr. Boyce Watkins of Syracuse University speaks with Free on Power 105.1 about Financial Lovemaking.  Click here to listen to the interview!

Your Black Sports: The NCAA Finally Gets Sued

LAS VEGAS — Lawyers for the former U.C.L.A. basketball star Ed O’Bannon filed a class-action lawsuit against the N.C.A.A. on Tuesday, claiming former athletes should be compensated for the use of their images and likenesses in television advertisements, video games and apparel.

The lawsuit, which did not include a dollar amount sought, will bring into focus how the N.C.A.A. handles player images, especially after players leave college and are no longer bound by N.C.A.A. rules, and its vast licensing deals, which are estimated at about $4 billion. None of that money goes to the former players whose images, jersey numbers and likenesses are used.

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Dr Boyce on the mike and Juliet Morning show