This short video clip was filmed about a month ago featuring Jim Cramer, CNBC's "Mad Money Man" himself. Cramer has some wise words for investors in these trying times. Think soft drink!
In 1891 Marcellas Berry an employee of American Expressinvented the Travelers Cheque. American Express set the
standard for Travelers Cheques and Gift Cheques.
Above is a reproduction of the first Travelers Cheque issued in 1891.
Since 1975, American Express has been synonymous with its classic advertising slogan "Don't Leave Home Without It" when it was devised by David Ogilvy of Ogilvy & Mather, a preeminent New York City advertising agency. Today, many people are only familiar with American Express as an issuer of a variety of credit and charge cards. However, before American Express issued the first charge card in 1959 (they were the first company to issue the embossed plastic cards that we still use today), it was known for decades as a financial services company. In fact, American Express started out in 1850 and in its early history they enjoyed a virtual monopoly on the movement of express shipments such as goods, securities, currency, etc.) throughout New York State. Over the years, American Express has been in the pulse of many businesses and corporate ventures; and without a doubt the company has a very interesting and colorful history in financial services.
On this day in 1891, American Express copyrights its Travelers Cheque, which will be a boon to globe-trotting customers as a protection against theft and other loss of cash. The cheque business began quietly; in its first year of sales only 248 cheques (worth $9,120) were sold, but by 1909, annual sales were $23 million. During 2000, sales of American Express Travelers Cheques increased to $24.6 billion.
In regards to the creation and patent of American Express Travelers Cheques, inventor and company employee Marcellus F. Berry wrote, "There’s one thing every person does in a distinctive way. That is writing his signature. Therefore the foolproof device for taking money to strange places must carry the signature of the bearer. It must declare that it will be cashed only when a second, and matching, signature is added before witnesses." Berry was granted four copyrights for "the travelers cheque" which he himself named.
The latest in wealth ostentation for people who have money to burn - the $1.45 million cell phone
Yesterday, I posted a story about a 24-carat gold plated outdoor barbecue made by the Australian company BeefEater. If you read the post, then you may remember that the fully functional outdoor unit is souped up for the Guy in mind and commands a retail price of just over $50k. Now this post (which is dedicated to the ladies unless your a Guy that loves to wear diamonds while barbecuing in style) trumps yesterday's story by $1.4 million!
Emirates Business News featured the GoldVish Le Million cell phone, which costs $1.45 million and is in the Guinness Book of World Records as the most expensive phone in the world! Designed by Emmanuel Gueit, production was limited to three units. Called “LeMillion”, it is handcrafted from 18-carat gold and is available in rose, yellow or white gold, with 120-carat diamonds encrusted all over it. The units are handmade in Switzerland where they are equipped with 2GB memory, quad-band for worldwide reception, an 8x digital zoom camera, MP3 player, Bluetooth and FM radio.
To read more about the latest in "icy communication" click here. Now it's time to go broke in America - but at least you'll be in style while doing it!
Bling done right? Grillin' taken to a whole new level of luxury! For generations, the outdoor barbecue has been the particular expertise and passion for the American Guy; grilling has become both an institution as well as a tradition - particularly with our leisure time such as the holiday we are celebrating today. In this tough American economy, if you are lucky to have about $50k lying around in the bank and need the latest jaw dropping gadget to impress those in your life, then this outdoor Guy gadget may be for you.
The famous Australian barbecue maker BeefEater has recently unveiled the ultimate in backyard bling - the world’s first fully operational gold barbecue. BeefEater commissioned the glittering grill (valued at over $50,000) in time for the Sydney Home Show as a wacky and fun way to celebrate recently being named the World’s Finest Barbecue in a global review of the world’s finest luxury products across a number of categories. The unique barbecue featured a six-burner barbecue and wok burner, roasting hood and warming rack, high output burners, quartz start ignition, vaporizer grid and reflector system, all individually plated in 24-carat gold.
To read more about the golden throne for all Guy's (and gals), click here.
While Henrietta Green (above) was the richest woman in America during the first decade of the 20th century, she was legendary for being extremely tight with her fortune. It was well noted that Henrietta's son lost a leg because she refused to pay for proper medical treatment until it was too late. It takes many, many years in order to properly build wealth. Watching your pennies, cutting corners on expenses, and spending and investing wisely is a great start to propelling wealth over the long haul. While the secret to building wealth is not such a mystery, one woman over a century ago became legendary for being way too tight with her money. On this day in 1916, Henrietta Howland Green (a.k.a. the "Witch of Wall Street") dies in New York City as the richest woman in America with an estate worth over $100 million. She was 80 years old and miserly to the very end. Despite her enormous wealth, she lived the last two decades of her life in a tiny apartment in Hoboken, dressed shabbily, haggled with shopkeepers, and avoided medical treatment other than what she got at charity clinics. Her practice of maintaining a large pool of liquid assets for lending allowed her not only to survive the panic of 1907 but to thrive. Many investors at the time of the panic were highly grateful to Green and found themselves in debt to her.
To read more about the highly unusual but fascinating story of Henrietta Green and the fortune she built, click here.
On this day in 1819, the Bank for Savings in the City of New York - the first savings bank in America - opens for business. The first day's receipts were $2,807 from 80 depositors. The statement for the first six months showed a loss of $27, suffered as a result of accepting counterfeit money and a short change loss of nearly $24.
American Genius: Thomas Edison harbored a big grudge when the newly formed General Electric Company was not named after him
Founded in 1892, the General Electric Company (GE) was an early innovator in electric lighting and power and set out to dominate the American electrical industry. On this day in that same year, GE is traded on the New York Stock Exchange for the first time - about two months after the Edison-Houston merger that created it and arranged by financier J. P. Morgan. World headquarters for the company were established in Schenectady, New York.
Miffed that his name did not adorn the new company, Thomas Edison attended his first, last, and only board meeting in August 1892. "I will not go on the board of a company that I don't control," he growled before selling all his GE shares. Edison did remain as a consultant to the company so that he could continue to collect royalties on his patents which remained. Four years later in 1896, GE was one of the original 12 companies listed on the newly-formed Dow Jones Industrial Average. GE is the only one that still remains today.
Did you know that the population of global millionaires grew five times as fast in emerging markets as it did in the U.S. last year? This is according to the World Wealth Report survey released Tuesday by Merrill Lynch & Co. and Capgemini. That was the largest divergence between the U.S. and the big emerging markets since the comparisons were first published in 2003. In fact, India and China saw the biggest growth in the millionaire population. To read more, click here.
An iconic image: Martha trying "to focus on my salad"on national TV in the midst of her insider trading allegations
Remember the wave of business scandal the plagued many of the powerful and well-known American companies only a few years ago? Yes, as everyone knows, this wave of scandal even touched an iconic person that caught many people by surprise and caused a national sensation in the process: Martha Stewart. If anyone has leaped into the annals of global culture by making the largest impact on the way people live, cook, decorate, and entertain, then Martha Stewart is certainly somewhere toward the very top of the list. But do you remember that on this day in 2002, Martha made that famous clenched-face appearance on the cooking segment of CBS's The Early Morning Show? Martha grimly chopped cabbage with an enormous knife during that segment while host Jane Clayson ambushed and angered her with questions about her alleged insider trading of ImClone stock. It was very apparent that Martha did have a sour side and showed it in front of the camera (all the rumors about Martha's nasty iron side that had circulated for years before was now confirmed). To read more about that memorable TV event, click
here.Yes - as many people predicted - Martha made a quick and highly successful comeback after her prison sentence ended in early 2005. However, only three years after the fact, it is rumored by many experts that Martha and the lifestyle she advocates is past prime and seems to be slowly fading toward black. A good clue to this is the stock in her company. Have you looked at shares of
Martha Stewart Living Omnimedia lately? The price per share has significantly dropped over the past year. Could this be the beginning of possibly another end for Martha? Can she survive another comeback? I guess the jury is still out on that one!As a business student, the Martha Stewart company is a fascinating study in how one woman became a modern day alchemist by turning cookies and decorating into serious cash - all from the comforts of her own home. Martha is definitely the legendary and iconic entrepreneur. As a Guy, however, when it comes to decorating and cooking, I can find better deals by stopping by my local Big Lots and Wal-Mart stores. Sorry Martha!
Former investment bank Bear Stearns hedge fund managersRalph Cioffi (left) and Michael Tannin
I guess that you heard the news about the two former Bear Stearns hedge fund managers who are among the first to take the perp-walk to court for the huge sub-prime collapse. Cioffi and Tannin (pictured above) were indicted by a federal grand jury in Brooklyn on Thursday. At 7AM Thursday morning, Cioffi was arrested at his suburban home in Tenafly, NJ, while Tannin was given the cuffs at his Manhattan apartment. These men face charges of conspiracy, wire fraud, and securities fraud in trying to cover up the collapse of two major Bear Stearns hedge-funds back in the summer of 2007.
Many people feel their collapse was the first sign of the sub-prime crisis that would ravage Wall Street and the economy for months. According to a Bloomberg article which broke the news, justice is on the way:
The two men were charged with misleading investors about the health of two Bear Stearns hedge funds whose implosion ignited the subprime mortgage crisis. Cioffi was also charged with insider trading in the indictment, which cites a series of e-mails between the two men. They face as much as 20 years in prison if convicted of the most serious charges.
I'd be seriously surprised if they got 20 years, but who knows, maybe they'll get hyped up as scapegoats for all the country's economic woes?
The U.S. Justice Department is on a roll today though, as they've also announced they have, to date, charged 400 people with crimes relating to mortgage fraud in the sub-prime crisis. These charges are a result of victims being scammed out of over $1 billion in predatory lending and foreclosure rip-offs. No one is safe today as the lucky 400 include real estate agents, lawyers, lenders, appraisers and even some speculative borrowers.Bloomberg news sure is busy today with the big arrest reports:
FBI Director Robert Mueller and Deputy Attorney General Mark Filip will announce the national crackdown, dubbed Operation Malicious Mortgage, this afternoon in Washington. Nearly 300 people have been arrested thus far in cities ranging from Chicago to Dallas to Miami, department officials said.
Don't you think that "Operation Malicious Mortgage" is a cool name? We've waited a long time for some action from the government, but it's still too early to tell if this is an adequate response to make up for everything that went down in sub-prime. It seems like a decent start, anyway.
Steve Jobs"The Apple of our iPod"
Check out this new article written by Christopher Null of PC World about the 50 most important tech visionaries of our time. And as you would suspect, Steve Jobs of Apple (picture above) has a deserved place on the list (he ranks #4) thanks to such cool gadgets as the iPod and iPhone.
Oh yes! Like many Americans, I have fervently complained about the rising cost of gasoline - particularly during these last several months. The price of gas is hurting almost every person and industry and government agency in this country (do airlines come to mind as the greatest example???) And will the gas crisis get worse from here? Yes, we have not seen the worst yet since summer has started. And no matter what, I will keep complaining about this topic right along with my fellow Americans. I have even put off some pleasure trips this summer due to the rising cost of fuel. If my leisure destination is not within a days drive, I'll stay home for now. Moreover, who isn't interested in hearing the next quarterly profit reports from the big oil companies that will be released soon?
Now for a little perspective (and humor) on the gas situation - even for a moment. Check out this short blog article from The New York Times entitled "Compared to Other Liquids, Gasoline is Cheap." Now after reading this, you may have some mixed reviews and chuckles. While I would never buy things like HP printer ink and Vicks NyQuil by the gallon (who can afford it?), I'll have to bear the cost at the pump for now. Well, besides the posted price at the pump, at least I laughed at something else today related to gas!
The "Oracle of Omaha"If you ever been an investor (or not) then you have certainly heard of the "Oracle of Omaha" Warren Buffett and even perhaps his billion dollar company, Berkshire Hathaway. Buffett's personal wealth has certainly made him a legend in the annals of American finance and philanthropy. Not bad for a man who started in finance by buying his first share of stock at the age of 11 and then filing his first IRS tax return at the age of 13 (Warren deducting his bicycle as a work expense for $35).
"The banking business is no favorite of ours," Buffett wrote in his 1990 letter to Berkshire Hathaway shareholders. "When assets are twenty times equity--a common ratio in this industry--mistakes that involve only a small portion of assets can destroy a major portion of equity. And mistakes have been the rule rather than the exception at many major banks." While Buffett was referring to the S&L crisis at the time, he could easily have been discussing the current problems in the mortgage market.
Here is a very interesting article that I came across in Yahoo! Finance this week that is certainly worth a read.
