The 404 416: Where our stocks are on fire and Jill hoses us down
For the last couple of months, stocks have been soaring more than 50 percent since their March low. Jill says all that means is that the market doesn't think we're headed for Great Depression 2.0, but that doesn't mean we're out of trouble. In the dark, we imagine what V-, U-, and W- recoveries would look like. Strange... Justin, is that your hand on my leg?Further down the line, we jump into the health care debate. Jill tells us her generation is screwing our generation and not in a good way. Essentially, they took all the good health care, and we (the 20-somethings) will just not be able to afford the premium "best health care" in the world, when we really need it. And somehow, Wilson reveals some of his Republican leanings? Say what?Finally, we get into personal savings for the future, and we pick up the ashes of our 401(k)s. So while your parents may have lost a bundle on their retirement funds, we 20-somethings still have another 40 years before we really have to worry about our returns. Meanwhile, Social Security is a toss-up. Jill wants to advise President "Barry" Obama that the easy solution to fixing the "Third Rail" of American politics is just tying benefits to an age index. People are just living too long...death panels, any one?Wow! So we hope you finally learned something on The 404. We sure did! Send in your feedback to the usual at the404 [at] cnet [dot] com. Follow Jill on Twitter. Or leave us a voice mail at 1-866-404-CNET, and you can debate us on the finer points of the liquidity of the money supply and U6 unemployment figures.Episode 416PodcastYour browser does not support the audio element. Subscribe in iTunes audio | Subscribe to iTunes (video) |Subscribe in RSS Audio |Subscribe in RSS Video This content is rated TV-MA, and is for viewers 18 years or older. Are you of age?YesNoSorry, you are not old enough to view this content.Play Jill Schlesinger's Financial Decoder blog Jill Schlesinger's TwitterFollow us on Twitter!The 404Jeff BakalarJustin YuWilson TangAdd us on Facebook!The 404 Fan PageThe 404 GroupJustin YuJeff BakalarWilson Tang
Microsoft still pushing 'Apple tax' notion
Microsoft still pushing 'Apple tax' notion
I made the argument when Microsoft first brought up the concept that, if it is a tax, it is a tax that a growing number of buyers seem willing to pay.Brooks said on Monday, though, that he expects the weakening economy will limit the number of people willing to pay more for a computer."More and more people are going to be scratching their head and say is that a tax I am really willing to pay," he said.He noted that the tax isn't just about the higher sticker price, but also about the lack of choice that Mac users have. Certainly there are fewer hardware options and the Mac software aisles remain far narrower as well. Brooks also tried to position the Mac as less open, pointing to the iTunes App Store as an example of Apple forcing a "walled garden" on users. Were he to be comparing the iPhone and Windows Mobile, he might arguably have a point, but last I checkeddevelopers are free to write whatever program they want for the Mac.Although I don't buy the idea that Mac users don't know there are cheaper PC options, I think the sorry state of the economy will pose challenges for all PC makers, including Apple. Consumers are clearly going to have to weigh any computer purchase against more basic needs, the prospect of not having a job, etc.That said, it is unclear who will be hurt more by the economy. Apple is in many ways akin to BMW or another automaker that plays only at the high end of the market. I expect Apple will have a tough time keeping up with recent growth trends. But, as the car market shows, the Fords, GMs, and Hyundais of the world are also taking a huge hit.I don't want to take this auto analogy too far, either. I don't see Microsoft running to Capitol Hill for a bailout anytime soon. Microsoft makes huge margins on its products. And while I hear layoffs may indeed be in the works, the company doesn't face anywhere near the structural issues of the auto industry (the Google threat notwithstanding).Brooks would not specifically comment on whether Microsoft has trimmed its PC outlook for 2009, but did say that clearly the whole global economy is far weaker than it was in October, when Microsoft issued its last forecast."It continues to be a tough economic time for everybody," Brooks said. "We continue to see that our customers are suffering out there. Click here for more Macworld Expo coverage from CNET News.
I made the argument when Microsoft first brought up the concept that, if it is a tax, it is a tax that a growing number of buyers seem willing to pay.Brooks said on Monday, though, that he expects the weakening economy will limit the number of people willing to pay more for a computer."More and more people are going to be scratching their head and say is that a tax I am really willing to pay," he said.He noted that the tax isn't just about the higher sticker price, but also about the lack of choice that Mac users have. Certainly there are fewer hardware options and the Mac software aisles remain far narrower as well. Brooks also tried to position the Mac as less open, pointing to the iTunes App Store as an example of Apple forcing a "walled garden" on users. Were he to be comparing the iPhone and Windows Mobile, he might arguably have a point, but last I checkeddevelopers are free to write whatever program they want for the Mac.Although I don't buy the idea that Mac users don't know there are cheaper PC options, I think the sorry state of the economy will pose challenges for all PC makers, including Apple. Consumers are clearly going to have to weigh any computer purchase against more basic needs, the prospect of not having a job, etc.That said, it is unclear who will be hurt more by the economy. Apple is in many ways akin to BMW or another automaker that plays only at the high end of the market. I expect Apple will have a tough time keeping up with recent growth trends. But, as the car market shows, the Fords, GMs, and Hyundais of the world are also taking a huge hit.I don't want to take this auto analogy too far, either. I don't see Microsoft running to Capitol Hill for a bailout anytime soon. Microsoft makes huge margins on its products. And while I hear layoffs may indeed be in the works, the company doesn't face anywhere near the structural issues of the auto industry (the Google threat notwithstanding).Brooks would not specifically comment on whether Microsoft has trimmed its PC outlook for 2009, but did say that clearly the whole global economy is far weaker than it was in October, when Microsoft issued its last forecast."It continues to be a tough economic time for everybody," Brooks said. "We continue to see that our customers are suffering out there. Click here for more Macworld Expo coverage from CNET News.
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