A remarkable comment January 5, 2009
Posted by Norm , 1 comment so farIndiana has never been known as a hotbed of venture capital deals. That recognition has long gone to California and Massachusetts, and the numbers fall off quickly in other states.
So a statement in this weekend’s IBJ was noteworthy for its take on the budding climate in the state.
Ann Hanham, managing partner of Burrill and Co., the San Francisco-based biotech venture firm, was quoted by IBJ reporter Peter Schnitzler as saying the firm was worried about wasting its time when it entered Indiana five years ago.
Now, she said, Indiana is generating deal flow comparable to North Carolina — home to vaunted Research Triangle Park, where a number of big companies have research operations.
Indiana is nowhere near the big states and probably never will be. Still, her observation suggests the life sciences effort under way in the state in the past few years has gained substantial traction.
What’s your take?
Backsliding on environment? December 30, 2008
Posted by Norm , 6commentsOne of the most curious developments underway in state government is the moves by the Department of Environmental Management to back peddle on its mandate to keep an eye on polluters.
Environmental groups are aghast at IDEM’s plan to slap penalties on polluters after “actual” or “significant” harm has occurred. On the surface, the change seems to make sense; after all, the rest of us aren’t penalized until after we’ve broken a law.
But pollution and the problems it causes often aren’t discovered until years after the dump or emission. That’s why some of the nation’s regulatory agencies were established — to prevent problems.
The agency is undertaking several other changes, such as breaking up the Office of Enforcement and spreading its personnel throughout its air, water and land quality offices.
The changes are curious because they seem to run counter to the Daniels administration’s moves to drag the state into the 21st century.
Hudson Institute President Herb London once said Indiana’s reputation outside the state is so bad that images of heavy metal contamination come to mind about as quickly as positive traits. Ironically, Hudson is the same think tank where Daniels once was executive vice president.
How do you feel about the changes at IDEM and Daniels’ environmental record?
Tough budget choices for state December 29, 2008
Posted by Norm , 3commentsGov. Mitch Daniels has ordered a string of budget cuts as the recession hammers tax revenue, and the upcoming General Assembly promises to generate squabbles over what little money is left to spend.
If you were governor, what would you cut first? Or would you propose a tax increase or chart another way out of the doldrums?
Another question: Should states that haven’t kept their fiscal houses in order be bailed out by the federal government?
Katz Sapper’s embarrassment December 17, 2008
Posted by Norm , 9commentsYesterday’s disclosure by KSM Capital Advisors that its clients might be out $15 million from the alleged Madoff scandal probably won’t be the last local fallout. At minimum, it has been a stressful and embarrassing time for a respected Indianapolis firm.
Some very good minds from around the world thought so much of Bernard Madoff’s returns that they actually begged him to invest their money. Others thought they smelled a rat when his returns didn’t contract with market downturns, and quietly stayed away.
KSM didn’t directly invest with Madoff. It placed the money with another firm, which sent the money to a third firm that in turn invested with Madoff.
To what extent do you blame KSM, or its parent, Katz Sapper & Miller, for the nightmare? Any lessons to learn?
Nearly free money on the way? December 15, 2008
Posted by Norm , 6commentsThe Federal Reserve this week is expected to drop the rate at which banks loan money to each other below 1 percent. That means interest rates on loans for just about everything, from cars to housing, eventually would fall further.
The interest you’d pay on a loan would be several percentage points higher than the so-called federal funds rate. But the trend is down, and that means the getting may be as good as it’s been in a long time.
If you’ve been holding back on a purchase, how much further would rates need to drop before you’d pull the trigger? Or are you so worried about the economy, your job or your business that even a “free” loan wouldn’t draw you into the market?
Utility of WARN notices December 11, 2008
Posted by Norm , 2commentsIn times like these, what do you think of the Worker Adjustment and Retraining Notification Act, commonly called the WARN Act or WARN notices?
The federal law was passed in 1988 to give employees 60 days’ notice of an impending layoff, and now it’s getting a workout as companies unload busloads of people.
Broadly speaking, the law applies to companies with at least 100 employees that plan to lay off at least 50 employees at a particular site. Both hourly and salaried workers are covered.
Is the law burdensome to employers? Should employers be required to give even longer notices?
Pondering corruption December 10, 2008
Posted by Norm , 3commentsYet another Illinois governor is going down in legal flames, as Rod Blagojevich struggles to extricate himself from federal accusations that he brazenly tried to peddle Barack Obama’s Senate seat to the highest bidder.
So, we’re reminded again that power corrupts. And that people corrupt power.
What is it about politics? Do you think the problem is mostly corrupt people coming into power, or power corrupting innocent people?
Questions about Detroit’s bench December 8, 2008
Posted by Norm , 7commentsPoliticians are about to step in for directors and force sweeping changes on the Detroit car companies, judging from the direction of talks in Congress.
Senate Banking Committee Chairman Chris Dodd yesterday called for the firing of General Motors chief Rick Wagoner and said privately held Chrysler should merge.
Dodd isn’t alone in suggesting top managers drove the companies into the ground. But his comments raise additional questions about the depth of the companies’ bench strength.
If C-level managers and even directors were to be replaced, how strong are the professionals — the engineers, designers, marketers, accountants — who would still be in their cubes and offices? In other words, as the companies lost market share and prestige over the past 30 years, did they attract college graduates who can hold their own in one of the most competitive industries in the world? Or have the Detroit Three been populated with people who won’t be able to contribute to turnarounds no matter who leads them?
Thoughts?
The (your name here) bat December 4, 2008
Posted by Norm , 3commentsPurdue University is jumping on a trend toward offering naming rights for newly discovered species.
The university plans to announce Monday that a bat discovered by one of its researchers can be named for a company, a person — pick your poison.
So, yes, the common name of the bat could conceivably become the Eli Lilly bat. Or the Jim Brainard bat. And Purdue gets the money.
Sorry, the scientific name isn’t for sale.
Purdue isn’t disclosing the asking price until Monday.
How do you like the idea?
Gall about the jobs bank December 4, 2008
Posted by Norm , 6commentsThe jobs bank has come to symbolize whatever the general public thinks is wrong with the United Auto Workers and Detroit car companies.
For many years, the UAW contract has stipulated that laid-off workers be paid nearly their entire compensation. Now, because the jobs bank has become such a lightning rod, the UAW says it will suspend the benefit in the hope of persuading Congress to OK a bailout.
Toyota made news this year when it treated its workers much the same. It continued to pay laid-off assembly line workers even through production slowed and they weren’t needed. Yet, the decision wasn’t met with disdain.
Why are Americans repulsed about the UAW jobs bank but nod approvingly when Toyota keeps its workers on the payroll during slow stretches? Is the difference that Toyota workers keep training during their layoffs?