The Latest from Dr. Boyce Money – 12/21/09

 

 

Dr. Boyce Money

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  How a Happy Meal Can Cost You Half a Million Dollars

  Many of us don’t spend much time thinking about retirement planning. We figure that it’s something …

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  Sinbad: Comedian Files for Bankruptcy After Going Broke

  It turns out that Sinbad is broke. The comedian declared bankruptcy on December 11th of this year, …

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  Man Gambles Away $127 Million Dollars – Dr. Boyce Money

  Terrance Watanabe has a serious problem. The 52-year old man went into Harrah’s casino, got drunk …

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  Gatorade Drops Tiger Woods Drink: Dr. Boyce Money

  Gatorade has dropped Tiger Woods, well, at least they dropped his drink. The new Gatorade drink, …

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  Prosperity Gospel and the Black Church: Legitimate or Not?

  Nearly every African American knows just how important the black church is to our community. We …

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  Inner City Schools: Funding Should be Equal Across the Board

  The following is an excerpt from the book, "Black American Money." I saw some random "expert" on a …

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Accenture Drops Tiger Woods

A major sponsor for Tiger Woods announced Sunday that it is dropping the golf star in light of recent controversy swirling around his personal life.

Accenture, a management consulting firm, said on its Web site that "given the circumstances of the last two weeks … the company has determined that he is no longer the right representative for its advertising."

The move ends a sponsorship arrangement that lasted six years.

Another major sponsor, Gillette, said Saturday it was "limiting" Woods’ role in its marketing programs to give him the privacy to work on family relationships.

Woods announced on his own Web site Friday that he is taking an "indefinite break" from professional golf.

The 33-year-old golfer, who tops the sport’s world rankings, has been mired in controversy since he crashed his car outside his Florida mansion late last month. In the week following the crash, Woods apologized for "transgressions" that let his family down, and US Weekly magazine published a report alleging that Woods had an affair with a 24-year-old cocktail waitress named Jaimee Grubbs.

 

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Black Financial News: How ARe college students going to handle tuition hikes?

Watch this video, which describes the financial trauma for UCLA students as the result of a recent tuition hike.  It’s very interesting.

College Student Money Runs Short: How is She Gonna Work It Out?

This college student has financial problems.

Jobs Report is Optimistic

In the strongest employment report since the recession began nearly two years ago, the government said Friday that the nation’s employers had all but stopped shedding jobs in November, taking some of the pressure off of President Obama to come up with a jobs creation program.

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Michael Reynolds/European Pressphoto Agency

Demonstrators outside the White House on Thursday as President Obama met with business leaders and economists to seek ideas for creating jobs.

The Labor Department reported that the United States economy lost 11,000 jobs in November, and the unemployment rate fell to 10 percent, down from 10.2 percent in October.

The government also significantly revised its September and October job loss estimates. September’s data was adjusted to show a loss of 139,000 jobs instead of 219,000, and in October 111,000 jobs were lost, instead of 190,000. Even allowing for the November loss, the revisions added 148,000 people to the list of those employed in the United States in November.

Though the pace of job loss has been declining since a peak in January, the November number was surprising. Economists had been expecting a turning point to come in the late spring or summer, with employers finally adding workers as a recovery takes hold. The last time the number was so bright was in December 2007, when the economy added 120,000 jobs.

“It is clearly a much better picture, and appears to be mostly genuine,” said Nigel Gault, chief domestic economist at IHS Global Insight, who said he was encouraged by gains in the average workweek and the number of temporary workers hired. “It shows employers have come back so much and are starting to rehire.”

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How Does Prosperity Gospel Work Anyway?

by Dr. Boyce Watkins, Syracuse University 

Nearly every African American knows just how important the black church is to our community. We also know about "prosperity gospel," the act of preaching about God within the context of wealth building. I admit that this form of faith is a bit odd to me. I am a Finance Professor and I become confused when my pastor talks about money more than I do. The saddest truth is that it’s hard to tell the difference between a pastor and a pimp: Most pastors aren’t pimps, but any pimp could be a pastor. The same skill set is required in both professions.

My father is a preacher, but he almost never preaches about money. I’ve never heard him asking for money on the pulpit, or mentioning that giving money to him is one of the keys to gaining access to heaven. But I don’t presume that my father is right about all things, and given that I write about money on a regular basis, I have gained an appreciation for what financial resources can do to enhance your life. Also, one must be aware of the pragmatic realities of running a church: You have the building fund, bills to pay every month and any community service initiatives that the church chooses to pursue. The proper use of money can certainly enhance your ability to do God’s work.

 

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Dr. Boyce talks money on ABC News

Brittany Sharpton Discusses Black Unemployment

Dr. Boyce Money: Saving on Funeral Costs

by Dr. Boyce Watkins 

Funerals are never fun. They are emotionally draining and you are forced to endure the shock of knowing that your loved one will never be back in your life. In addition to the emotional devastation, you have to deal with the financial burdens of paying for someone to be buried. We all know that funerals are not free or cheap, and the last place you want to be cheap is when it comes to burying the person you love.
But there are ways you can keep the cost down. They say you can’t take the money with you, but someone who doesn’t plan for their death may be taking their relatives’ money with them to the grave. Here are some ways that you can bury on a budget: giving relatives dignity without creating financial hardship.

There is a funeral cost calculator on FuneralswithLove.com that helps you to figure out how much your funeral might cost and whether or not you’re going to be able to pay for it. Effectively, the cost estimator first determines your total resources from prepaid expenses, personal savings/investments, and death benefits. Once you know what is available to you, you have to determine how much you want to spend. Some of us want to go out in style and some of us figure that since we’re dead, our relatives should be the ones having all the fun.

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Dr. Boyce Watkins: How Rihanna Is Profiting from Her Tragedy

by Dr. Boyce Watkins, Syracuse University 

I hated what Chris Brown did to Rihanna. I was angered, disappointed and irritated by the fact that many are quick to forgive egregious behavior on the part of celebrities, and a hit song can forgive all sins. At the same time, celebs are just like the rest of us, full of complexities that the world may never come to understand. Rihanna has walked away from Chris and she is now telling the entire world how bad of a man he is, and we’re all taking her side.

The problem for Rihanna, however, is that her actions aren’t making much sense.

Rihanna’s recent whirlwind media tour has included the likes of ABC News, MTV and other major media outlets. Throughout this tour, she has allowed the world to enter into her dark reflection on the relationship she had with Chris Brown, with that reflection seeming to have almost no productive purpose. I am not sure why the he-say/she-say between two 19-year old kids should be the concern of the nation. But then again, I am sitting here writing about it, so I am as guilty as everyone else.

 

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Dr Boyce: Ben Bernanke Needs a Lesson in Racial History

by Dr Boyce Watkins, Syracuse University 

I’ve always had mixed feelings about Federal Reserve Chairman Ben Bernanke. I feel that he is better than the previous chairman, Alan Greenspan, but the Fed Chairmanship (like the presidency) is almost never given to the right man. Just the fact that it is almost always given to a man is problematic enough, and the truth is that only white men need apply for the job.
Well, when you are limited in your option pool for the top job, bad leadership and flat out ignorance can sometimes be the result. While Fed Chairman Bernanke might know some nuts and bolts about economics, he appears to be shockingly misinformed about economic disparities between blacks and whites. His embarrassing and highly inappropriate statements at Morehouse College serve as a significant case in point.
In a recent interview at Morehouse, the Fed Chairman was asked what he felt to be the reason for the wealth gap between blacks and whites. In response, Bernanke said that the gap was due to a lack of "financial literacy" and "financial education" on the part of African Americans. That’s all he mentioned.

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Ben Bernanke’s Ignorant and Racist Remarks

• Federal Reserve Chairman Ben S. Bernanke listens to businessmen following an address in Chatham, Mass., Friday, Oct. 23, 2009. (AP Photo/Charles Krupa)

Last spring when Federal Reserve chair Ben Bernanke visited Morehouse College, an undergraduate student asked him what accounts for the enormous racial disparity in wealth. Bernanke responded that the source of the problem was the lack of "financial literacy" and "financial education" on the part of blacks, particularly with respect to savings decisions.

He said nothing about the lack of access to inherited wealth, such as inheritances and other intergenerational transfers. Most wealth acquisition today takes place by such asset shifts. Even more astonishing, Bernanke never mentioned the notorious history of white violence that included the seizure, destruction and appropriation of black property.
Acknowledging this unfairness is not an excuse but a powerful truth; remedying it requires straightforward government action, rather than lectures on the value of saving. In fact, the racial wealth gap can be decreased – and without using a race-specific strategy of wealth redistribution.

We propose Children’s Development Accounts, an expanded and non-incremental version of what Manning Marable of Columbia University has called the "Baby Bond" plan. It would provide an endowed trust fund for all children born into families with a net worth below the national median, progressively rising to $50,000 to $60,000 for children whose families are in the lowest wealth quartile. The program could be structured like the Earned Income Tax Credit, which uses a benefits phase-out schedule.

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Secretary’s Error Costs Pepsico over $1 Billion Dollars

What’s the cost of not showing up to court? For PepsiCo Inc., it’s a $1.26 billion default judgment. A Wisconsin state court socked the company with the monster award in a case alleging that PepsiCo stole the idea to bottle and sell purified water from two Wisconsin men.

Now the company is scrambling to salvage the situation. The damages award was handed down on Sept. 30. PepsiCo filed motions to vacate the order and dismiss the claims on Oct. 13, saying it wasn’t even aware of the lawsuit until Oct. 6.

The litigation began in April when Charles Joyce and James Voigt sued the soft drink maker and two of its distributors, alleging they had misappropriated trade secrets from confidential discussions the plaintiffs had with the distributors in 1981 about selling purified water. The information was illicitly passed to PepsiCo, which used it to develop and sell Aquafina bottled water, the plaintiffs allege in the case filed in the Circuit Court of Jefferson County before Judge Jacqueline Erwin.

 

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Towanna Freeman Talks about Being an Entrepreneur

by Dr. Boyce Watkins, AOL Black Voices 

An entrepreneur doesn’t think like everyone else. She is willing to take chances, disciplined enough to focus on a dream and passionate enough to pursue that dream. Towanna Freeman is in that category. AOL Black Voices had the chance to catch up with Towanna, to get some advice on striking out on your own, as well as managing a marriage, children and career, all at the same time.
1) What is your name and what do you do?
Have you noticed how so many people seem to be living an unbalanced life or living beneath their full potential? Well, I assist people, particularly women, who are ready to take life changing action to get that sense of balance back along with that greater feeling of fulfillment and happiness. I am also the principal consultant of Towanna Freeman & Associates, a management consulting firm with the primary emphasis on leadership coaching and employee performance improvement; the founder of the Young Women’s Empowerment Network a nonprofit organization that produces empowerment workshops, conferences, and other special events for teen girls; and the author of "Purposeful Action, 7 Steps to Fulfillment."

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Black Life 101: Should This Man Have Shot the Boy Having Sex with His Daughter

by Dr. Boyce Watkins, Syracuse University, AOL Black Voices 

I have daughters and I love them all. They are all at "that age," between 16 and 20, where they tend to love the boys that you want to beat down the most. Every time I hear them express their undying love for Lil Wayne, I can only think about him having 3 women pregnant at the same time. When I see a Chris Brown poster in their room, I remind them that Chris was accused of having boxing practice on Rihanna’s face.

But as a father, you can’t protect your daughters from themselves. Some things they have to learn on their own. And if sleeping with a pants-saggin, "purple stuff dranking," gold grill wearing, 10,000 tattoo having buffoon is the way they need to learn their lessons, you just kinda have to deal with it.I empathize with Wade Edwards, the man accused of shooting a boy for sleeping with his step daughter. Wade shot the boy four times, aiming for the "relevant zone" with each bullet. But while I can understand Wade’s anger, I do not, for one second, condone his actions.

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American Express CEO Says Disaster was Averted in Money Crisis

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

Fenorris Pearson: Finding the Right Corporate Champions

by Fenorris Pearson 

No matter how many people work at your company, it only takes one or two people to change the game you’re playing. Choosing your alignments on the job can make all the difference in your career. In fact, forging alliances in the workplace is a lot like getting elected: it’s not the most popular candidate who wins, but the one who has proven himself/herself to be the most influential.

In terms of voting power, finding the right alignments is about courting individuals with the most votes that count. In other words, you can have all the friends in the world, head the Cheer Club, lead the league in strike-outs on your company softball team and generally have the popular vote, all without winning the election. Just ask Al Gore, who won the popular vote in the 2000 election, but lost the Electoral vote.

These viewpoints are most certainly capitalist. When you’re in a corporation, democracy doesn’t help you win the favor of your co-workers; your outcomes are determined by your relationships with key decision makers – those one or two consummate executives who have the most influence on your future with the company.

The corporate alliance is a very intimate one; for better or worse, you could be aligning yourself with someone who is very visible, influential and known throughout the company. A consummate executive also remembers that it’s not just the ally you’re courting, but everyone in his or her network.

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People Fight Over Stimulus Money

Scuffles erupted as several thousand Detroit residents jockeyed, pushed and shoved Wednesday to get free money being offered to only 3,500 of the city’s recently or soon to be homeless.

Several received medical treatment for fainting or exhaustion while frantically trying to obtain the applications for federal housing assistance. The long lines and short tempers highlighted the frustration and desperation that Detroit residents feel struggling through an economic nightmare.

The line around Cobo Center, a downtown convention center, started forming well before daybreak. Anger flared within a few hours as more people sought out a dwindling number of applications for the program.

Members of the Detroit Police Department’s Gang Squad and other tactical units were called in for crowd control. Several people reportedly passed out from exhaustion and had to be treated by emergency medical personnel. Some minor injuries were reported, and no arrests were made.

 

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Your Health Insurance News – 10/14/09

Health Insurance Companies causing pain for patients: Are insurance companies limiting the options available to your doctor? That may be the case. While our nation is quick to blame physicians for the state of healthcare, the insurance companies may be a more sensible target for our collective frustration.

What is umbrella insurance? – This type of policy protects you from all the things that your standard insurance plan doesn’t cover. Everyone should consider getting umbrella insurance.
How do you keep your insurance if you lose your job? - If you don’t know the answer to this question, you need to learn about the COBRA laws. COBRA allows you to keep your old health insurance if you lose your job, and as part of the stimulus package, the federal government pays 65% of the cost.

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Financial News: Insurance Costs Overwhelming Many Americans

"The high cost of each premium and the high deductible a person or family must pay per year is my biggest complaint against health insurers."

"For example, I pay around $300 a month for my wife and me for basic coverage, and pay a deductible of $750 each every year, not to mention a co-pay of $15 to $20 at the window."

"My yearly income is around $32,000 a year. Very little is left for goodies. Meanwhile, a doctor takes in $80 to $120 a visit that lasts 15 to 20 minutes. Imagine how much he makes a day, a week, a month, a year. Plenty of goodies here."

 

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Black Money: Entrepreneurs Create their own Economic Recovery

From CNN 

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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Fenorris Pearson Talks to Steve Harvey about Reaching Your Goals

by Fenorris Pearson, CEO Global Consumer Innovation, Inc. 

If you measure some of today’s top performers by yesterday’s gold standards, they simply wouldn’t measure up. Industry icons, business mavericks and game changers like Bill Gates, Walt Disney, Richard Branson, Steve Jobs, Rachel Ray and Michael Dell didn’t finish school or have a great education; and based on those two metrics alone, no one could have measured their full potential. By focusing only on such metrics, you might be missing the most valuable components of a person’s engine of success.

As a guest on Steve Harvey’s show, I was recently talking about success, potential and the wide gap between good grades and pure genius. Steve said something that I’ll never forget. When coming up “the hard way” he would interview for jobs or audition for various roles and, based on purely measurable qualifications – school records, his one-page resume, or whether he has movie star looks – he never quite measured up. “But what they couldn’t measure,” said Steve Harvey, “was how big my dream was…”

What a difference the power of dreams can make. As the star of The Steve Harvey Show, Steve won four NAACP Image Awards as “Outstanding Actor in a Comedy Series.” He also won an NAACP Image Award for his performance as host of the variety series It’s Showtime at The Apollo. In March 2001, Harvey received the ultimate honor: NAACP Image Award’s “Entertainer of the Year,” and now has a NY Times best-selling book on the market.

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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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Fenorris Pearson: What Matters at the Top of the Corporate Ladder?

by Fenorris Pearson – CEO Global Consumer Innovation, Inc

Despite a growing number of women and minorities in the workplace, the directors of corporate boards remain mostly white and male, according to a new report on Fortune 100 companies. Women and minorities together account for less than a third of the directors on more than 60 percent of the boards examined, according to the report. African Americans represent 7% of all corporate board members.

In spite of these grim statistics, there is a great deal of hope for the possibility of women and minorities sitting in positions of authority. The more you perform and the higher you go up the corporate ladder, the less color matters. The truth is that corporations are seeking individuals who can enhance the bottom line. A good corporate manager doesn’t care if you are black or white, as long as you deliver the green.

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What Matters Beyond the Resume when it comes to Corporate Success?

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

Education is critical for success, but when everyone has the same education from the same Ivy League schools with the same GPA… how do you stand out? Other factors beyond education – business etiquette, dress, playing well with others, teamwork and dedication are easy to measure and log. But what of those immeasurable traits that count for just as much in the corner office: passion, drive, commitment and stamina?

How can we measure the immeasurable?

When it comes to playing at the top, it’s often the intense, burning desire of the candidate that makes the difference between success and failure. At the end of the day, performance and results are two of the most important traits a top performer can possess. Work harder than your competition, and you’ll win the battle every time.

Another thing that people can’t measure with grades, paychecks, promotions or time cards is what’s inside your heart.

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Senate Could Vote to Extend Jobless Benefits

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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Professor Says We should Stop Buying Black Haircare Products

Atlanta, GA October 5, 2009 – Professor Devin Robinson, an economics professor at Oglethorpe University in Atlanta, GA and best-selling author of Taking it Back: How to Become a Successful Black Beauty Supply Store Owner, will lead a one week long boycott against Non- Black Owned Beauty Supply stores.

Robinson stated, "Blacks make up 96% of the consumers of these stores, yet represent less than 5% of the retail ownership." As a previous owner of 3 locations, Robinson understands the industry inside out and offers comprehensive solutions for Blacks to recapture this industry. "The problem is with the distributors. Distributors are mainly Non-Blacks and they handpick who they will distribute products to. This oftentimes leaves aspiring black owners disenfranchised", said Robinson.

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Get Sponsored!—Identifying the One Person Who Can Change Your Career Overnight

by Fenorris Pearson 

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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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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Black News: Tiger Woods earns a Billion

Tiger Woods has become the first sportsman to break through the billion-dollar earnings barrier, Forbes magazine reported on Thursday.

The 33-year-old American, who has won 14 majors, reached the latest landmark of his career when he won a 10-million-dollar bonus for his FedEx Cup victory last weekend.

According to the magazine’s calculations, Woods went into the 2009 season on 895 million dollars which included prize money, endorsements, appearance fees as well as money earned through his golf course design business.

Even before picking up his end of season bonus, Woods had earned 10.5 million dollars on the USPGA Tour this year, winning six titles.

 

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Fenorris Pearson: Playing the Game at the Top: Your MBA Might Be DOA

 

by Fenorris Pearson

Once upon a time your MBA was the gold standard; a guarantee for eventual and all-but inevitable success in your chosen profession. Today the starting line has moved; an MBA is still crucial for the well-rounded, would-be consummate executive, but no longer the gold standard by which success is currently measured.

Even those reliable old yardsticks by which past business success was calculated – hard work, seniority and massive overtime – no longer ensure you the success you desire today. Many men and women have built their fortunes on these skills alone in the past, but times are changing at a critical pace, and it is important that you keep up. There are thousands of MBAs awarded every year, and the cookie-cutter approach to business success has evolved. How are you going to be different from every other MBA in the country when it comes to finding your path to success?

Here are some things you can do to rise above your MBA, make yourself relevant and prepare for the real world:

1) Never forget that the world is changing: With the increased used of technology, business models are adapting, corporations are changing their strategies, industries are rising and others are dying. Make sure you know where you fit in this bold, new world and don’t assume that you are living the same life you would have lived in 1989. The textbooks used in your MBA courses might have worked for business models in the 1990s, but they may become obsolete in the new millennium.

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Dr. Wilmer Leon’s Quick Remarks on the Possible Sale of Ebony Magazine

 

In this challenging time for print media, the historic jewel of African American periodicals, Ebony (like so many of our ancestors) is on the auction block. What was once a staple in so many African American homes is now struggling for its survival as many question its relevance.

During segregation Ebony and Jet magazines were key sources of information for the African American community about the community. With integration, too many of us left our communities, churches, and culture behind in order to assimilate into the dominant culture. With that, for too many, Ebony no longer reflects the community they live in; aspire to live in or a lifestyle that they see as relevant.

I have always felt that Ebony needed to incorporate more relevant political/economic/business information, analysis, and content to appeal to the growing African American middle and upper class. Life style and entertainment is great but that needs to be supplemented with the relevant information to maintain that life style. It’s a difficult mix to maintain but necessary.

Selling Ebony/Jet does not mean that those magazines will cease to exist but with ownership comes control. The sale of Ebony/Jet goes back to the question of who will be left to define and interpret the issues that are relevant to the African American community and who will control its imagery. I don’t know that Viacom has that mission or interest.

John H. Johnson said that Ebony was founded to "project all dimensions of the Black personality in a world saturated with stereotypes. We wanted to give Blacks a new sense of somebodiness, a new sense of self-respect. We wanted to tell them who they were and what they could do. We believed then–and we believe now–that Blacks needed positive images to fulfill their potentialities." The world continues to be saturated with those stereotypes and the community still needs positive images in order to fulfill its potential.

Dr. Wilmer Leon is the host of the Sirius/XM Satellite Show “On with Leon.”  To contact Dr. Leon for media requests or speaking engagements, please click here.

Dr Deborah Stroman Speaks on the Financial Struggles of Ebony Magazine

 

Business knows one only color – green. Whether one has a history of success or newfound fame, businesses must continue to make a profit. Unfortunately, the announcement recently made by Johnson Publishing Company, Inc. the world’s largest African-American-owned and-operated publishing company, reflects the simple fact that long-term financial projections reveal that there is more month left than money. A painful pill to swallow for many in the black community due to the legacy of this family and its mission; however, there are important 21^st century business lessons to highlight from this sad prospect. First, know and stay in tune with your audience. The graying demographic that historically supported Ebony can’t be relied upon for financial stability in recessionary times. New money is found in collaborative and results-based (not old school relationship) marketing.  Sadly, time is really, really money in today’s new economy. Second, embrace technology or get left behind. Experts have clearly articulated the dying of print media over the past decade. Those who chose to sleep in and ignore the warnings are now locking the doors and turning in keys. Americans want and deserve information fast and accurate. The Internet provides that medium. And lastly, in times of struggle God always provides an opportunity. The leaders at Johnson Publishing have a tremendous asset in their people. They are creative and passionate about their community and they should be given the chance to provide direction. This moment is not the time for consultants and clairvoyants with crystal balls to steer the way. Truly listen to the heart and soul of the company – the journalists and staff – and make the necessary decisions to be a viable institution for another 63 years.  Hey! No pressure but the Black community, avid readers or not, depends on it.

Dr. Deborah Stroman is a Professor at The University of North Carolina Chapel Hill and an expert on Leadership.  To contact Dr. Stroman for speaking engagements or media requests, please click here.

Dave Ramsey Talks about Term Life Insurance

Black Financial News: Ebony Magazine is About to Be Sold

 

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

 

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:

Click to read.

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The Cheapest Car in the World

Big Money and Big Power at the G20 Summit

by Dr. Boyce Watkins, Syracuse University 

Uncle Ben from Spiderman made the most prophetic statement of the entire film series in his dying days (I almost cried, but don’t tell anybody): "With great power comes great responsibility." Most of us understood what Uncle Ben was trying to say, and that includes Barack Obama.

Uncle Ben should have been the keynote speaker at the latest G-20 Summit, taking place this week in Pittsburgh,PA. The G-20 Summit is a gathering of the Finance Ministers and Central Bank Governors of the world’s 19 wealthiest countries, plus the European Union. These countries encompass 85 percent of the world’s gross domestic product, so they would probably meet Uncle Ben’s qualification for "great power," at least when it comes to money.

The G-20 Summit’s primary objective is to achieve broad cooperation on the preservation of international financial stability. The motivations of the group, created in 1999, are seemingly noble and make perfect sense in light of the fact that the global economy has reached an unprecedented level of integration. If large nations do not work together, the world’s financial system will be subject to alarming amounts of volatility.

Not everyone can see the vision behind G-20 ambitions. Usually, the gatherings of the G-20 are as out of control as a frat party, as protesters have made a game out of disrupting the meetings as much as they possibly can. To prepare for this year’s economic fiesta, the city of Pittsburgh has brought in 4,000 police, 2,000 National Guard troops and 11 Coast Guard vessels.

Police, in an overwhelming show of force, declared Thursday’s march illegal almost as soon as it began, firing rubber bullets and canisters of pepper spray and smoke after small bands of anarchists responded to calls to disperse by rolling huge metal trash bins, throwing rocks and breaking windows. As of Friday morning, reports said nearly 70 people had been arrested and police were bracing for scattered protests around downtown.

President Obama, being the conflicted capitalist/black man/ex-community organizer that he is, made some telling comments about the demonstrators.

Click to read more on MSNBC’s TheGrio.com.

What You Never Thought you needed to know about property insurance

Your Black World 

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.

Click to read more.

Don’t Kill Tavis Over Wells Fargo

by Dr. Boyce Watkins, Your Black World 

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:

Click to read.

What the difference between a credit union and a commercial bank?

Click the image to watch a video that explains the difference.

 

Dr Boyce Watkins comments on Obama’s Speech 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:

Click to read more.

Black Love, Black Money and Black Relationships – What they have in common

Some people think that money and sex have nothing in common. Actually, they have everything in common. The act of merging your assets with another person’s can be an exhilirating process leading to the high of a lifetime, or it can be a devastating and emotionally crippling experience.

In a series of articles, I plan to lay out some examples that explain what sex and money have in common. Follow along, so that you can avoid the mistakes that are made by milions of people every single year.

Sex and Money Comparison Number 1: You could actually get the job done by yourself if you wanted to

No one says that you have to merge your money or your body with another person’s. There is a word we use to describe when someone takes care of his/her own physical needs, and I am not going to say it here. If you are not sure what the word is, then ask your mother, your boyfriend or your priest.

Just as you can take care of your physical needs yourself, the same is true of your financial needs. There’s an old saying "I can be broke all by myself." Thus, the choice to merge finances with another human being is not a choice we have to make. Merging assets with another person is also not a decision that should be taken lightly. It’s a decision you make only if you see potential benefits from the interaction.

Click to read more.

Four Ways to get Fired for Lying

Lisa F. shares his pain, but from a managerial perspective. “I know when a woman lies about being sick, just by looking at her hands and toes.” For the senior level new media executive, the giveaway is newly polished nails. “You cannot imagine how many women come in after a sick day with a fresh manicure or pedicure,” she observes.

Every day individuals fib, lie and embellish their way through the work day, not realizing that there are repercussions. The consequences may not always be as severe as termination, but it can be a reduction in bonus, a permanent mark on your record or a poor score on your yearly review, not to mention the damage done to your reputation among fellow colleagues.  What follows are 4 frequent fibs that every single should avoid in the workplace. 
Pulling the Healthy Sick Card

If you call in sick when you’re feeling perfectly fine you better be smart about it. Taking off one too many hangover Fridays, or regularly turning the day before calendared holiday 3 day weekends into your personal 4 day long weekends, will no doubt cause suspicious minds.  So come clean to your supervisor and ask that these  be reported as vacation days, or try to schedule your healthy sick days on less conspicuous days during the week.

Click to read.

Dr Boyce Money: Why Consumer Confidence Matters

Beyonce has a song about how she loves men with "big egos." This might imply that she likes men with confidence. Confidence matters a great deal in terms of male/female attraction, but believe it or not, it actually impacts our economy. Every month, the University of Michigan measures consumer confidence, to determine if Americans are willing to spend money and how they feel about their current and future economic security.

But you might ask, "Why would I care about confidence, since it’s only psychological and imaginary?" Good question. Actually, confidence is a psychological phenomenon which leads to very real impacts on our choices and behavior. A confident man who asks out every girl he meets will probably have more mating opportunities than a good looking guy who doesn’t open his mouth. A confident consumer is someone who feels good about his/her economic situation and therefore decides to spend money, which is always good for the economy. Confident companies make investments and hire new employees, but insecure companies put projects on hold and don’t hire anyone. Confident banks make loans, but nervous banks hold onto their capital, thus slowing down economic growth for the nation.

Click to read.

Mr. President: Good Move on Increasing the Minimum Wage

by Dr. Boyce Watkins

Syracuse University

I am a curious professor, a compassionate capitalist and the owner of a small business. All of these hats create a complex perspective on whether or not it is a good idea to increase the minimum wage. After all, we are in a recession, and one might be tempted to argue that any sort of pay increase would slow down our nation’s economic recovery, eliminate jobs, and significantly reduce corporate profitability.

Sorry to burst those bubbles, but the data don’t validate most of the above concerns.
First of all, the minimum wage was introduced during the Great Depression, the mother of all economic downturns. The Fair Labor Standards Act of 1938 was designed to ensure that the most vulnerable Americans were no longer going to be exploited by the power of big business. The Great Depression came to an end shortly thereafter, and there is no evidence that it slowed down the economic recovery in any significant way.

Secondly, the budgetary implications of minimum wage increases are not very large. According to the Bureau of Labor Statistics, only 2 percent of all men and 3.6 percent of all women currently earn the minimum wage. But while the impact on our national budget is small, the gains for those affected are tremendous: there are nearly 5 million children in families who earn the minimum wage, and nearly all of these children are going to have better lives in the advent of an increase.

 

Click to read.

Dr Boyce and Free Talk Money on Power 105.1

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

Obama Admin Plans to Increase Minimum Wage

Millions of American workers are about to get a federally-mandated raise, but the recession has left many wondering if and how the economy will benefit.

The raise, which will go into effect on July 24, represents the final wage hike in a three-step boost to the federal minimum wage increase passed by Congress two years ago. The minimum wage will rise 70 cents — or about 11% — to $7.25 per hour from $6.55. (Last summer, it went up 70 cents from $5.85.)

Whether Congress would have approved the wage hike had legislators known how dismal the economy would look two years later is an open question. But there’s no doubt the timing is awkward.

"There’s low inflation, high unemployment and this is when teens are looking for summer jobs," says Mike Gibbs, a professor of economics and human resources at the University of Chicago.

Click to read.

Top Black Blogs: Places to get your Daily Fix

 

Your Black World

Your Black Money

Your Black Woman

Your Black News

Your Black Politics

Your Black Health

AOL Black Voices

The Grio

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Long List of Consumer Complaints Against FreeCreditreport.com

5 months ago I signed up for the "free" credit report. Little did I know that I would be charged 1.00 per month on aservicecalled "Your Savings Club" which they automatically sign you up. Also they charge you another 1.00 per month as well as 30.00 for "CREDITDIAGNOS". In addition it is your regular charge of 11.95 for "CIC*Credit Monitor". So because I didn’t cancel in time, my "FREE" credit report cost me 214.75.

Justin of Lawndale, CA June 10, 2009

Freecreditreport.com requires you to enter yourinformationin BEFORE it discloses its terms and conditions. Upon reading all the terms and conditions I simply closed my web browser. I did not click on "agree" to terms and conditions and I did not click on either "no, just give me my free credit report" or "yes, I would like my 27 three credit reports" I simply closed the window.

Click here to read more.

Billionaire Madoff Gets 150 years in Prison

I guess crime doesn’t pay.  Bernard Madoff, the billionaire who bilked investors out of billions of dollars the largest Ponzi Scheme in American history was just sentenced to 150 years in prison.

 

Get more financial news at

www.AfricanAmericanMoney.wordpress.com

Michael Jackson’s Massive Debt: What We Can all Learn

by Dr. Boyce Watkins

• Janet Jackson honors Michael at BET Awards

Doctor talks to police about Jackson’s final moments

Let’s remember what Michael did for us

Michael Jackson is not dead. No, he’s not on a deserted island chilling with Tupac and Elvis (who some believe faked their deaths), but he is certainly alive in corporate and social spirit, impacting millions of people.

Michael will make 1000 times more money in death than most people make when they are alive. But similar to when he was alive, massive amounts of cash will have to be generated in order to counter the enormous debt that Michael created while he was doing his thing.

Reports have stated Michael Jackson’s debt to be as high as half a billion dollars, enough to make some major corporations blush. What’s worse is that this debt was not created via a series of sound financial investments: it was conceived by building personal amusement parks, buying rare monkey statues, and rocking his way from one expensive store to the other.

Michael’s spending became his addiction. Financial needs could have been what led to him agreeing to do 50 concerts in London this year (a tour he was preparing for just before his death), when he may have not been able to handle one. It was starting to get sad watching Michael perform, similar to watching Muhammad Ali after he’d spent 10 years dealing with Don King. While the 50-year old Michael Jackson may have given a great performance, it would probably be something less than what we’ve come to expect.

Click to read.

Financial Expert Ryan Mack: Basic Advice

Black finance expert Ryan Mack is back with part two of his informative interview full of great practical financial guidance. In our first installment, we learned the background of the mortgage crisis and what people can do to avoid losing their homes. This week, Ryan brings us more details about rebuilding credit and ways to battle the recession. Read on for his expert money management tips.
Miss Part 1? Read:
‘Ryan Mack Has Help For Housing Crisis Victims’

So Ryan, if someone loses a house at this time, what would be your best piece of advice for them as a next step?

At the risk of sounding elementary, the first thing the person should do is make sure they have a place to live. Afterward, they need to start to re-establish credit. My company offers a plan called ‘Seven Steps to Improving Credit.’ The basic outline is as follows:

Step One – Basic Housekeeping
You should know that 75% of all credit reports have errors and small balances that have been neglected. These should be cleared up immediately.

Step Two – Pay Bills on Time (35% of FICO score)
Missing just one payment can deduct 50 – 100 points from your score. Skipping payments for one month can take a 700 FICO score down to 562. To repair your credit, please get into the habit of paying your bills on time.

Step Three – Pay Down Debts
Carrying a balance serves no purpose. (For those planning on buying a house within a year, begin paying down all your balances NOW!)

Step Four – Don’t Cancel Old Accounts
Your Balance/Lending Limit Ratio makes up another 30% of your FICO score. If you must cancel accounts, cancel the newest accounts first. Try to spread out the time between cancellations by 6 months.

Step Five – Don’t Be Afraid of Credit Counselors
FICO ignores credit counseling and credit consolidation remarks. After payment is paid remarks are removed. That’s all you need to worry about.

Click to read more.

Nas’ Ex-Wife Has a Big Spending Habit

According to BlackAmericaWeb.com, Kelis claims she cannot live on her average monthly income of $21,616 — money she has earned herself through her own means. Her solution to this problem? Why, hit up her ex for money as they go through divorce proceedings. As proof of her need for additional funds, the funky pop star has listed her monthly expenses as $80,831, including:
$14,861… Mortgage
$3,500… Nanny
$15,000… Entertainment, gifts and vacations
$20,000… Strollers, cribs and other baby supplies
$175… Having the "baby rug dry cleaned"

Click to read.

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Black News: Civil Rights Groups Issue Statement on Financial Reforms

 

WASHINGTON, June 16 /PRNewswire-USNewswire/ — A group of prominent civil rights organizations — including ACORN, Center for Responsible Lending, Lawyers’ Committee for Civil Rights Under Law, Leadership Conference on Civil Rights, NAACP, National Association of Consumer Advocates, National Coalition for Asian Pacific American Community Development, National Community Reinvestment Coalition, National Consumer Law Center (on behalf of its low-income clients), National Council of La Raza, National Fair Housing Alliance — joined together today to applaud the launch of the financial reform effort by Americans for Financial Reform. Americans for Financial Reform’s broad array of financial experts and advocates are joining together in an unprecedented campaign to reform our financial system and rebuild our economy. http://ourfinancialsecurity.org/

Statement by civil rights groups:

"We applaud the work of Americans for Financial Reform, and are proud to join the effort to restore economic security by ensuring that financial institutions are accountable for their actions and promising that all Americans, no matter their race, ethnicity, disability, sex, age, or other protected class, are treated fairly. For years, the civil rights community has denounced the discriminatory business practices of financial industry players that have forced underserved borrowers to pay more for financial services while receiving less value and assuming enormous risks. As we modernize the financial regulatory system, we must ensure that the current two-tiered financial system is replaced with a transparent financial system that allows all Americans to build wealth equitably and fairly. When implemented, the strong recommendations made by Americans for Financial Reform will begin this important transformation."

 

Technorati Tags: civil rights,black news,black politics,african american news,african american politics

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Retirement Won’t Be What Boomers Expect

They grew up during a time of cultural change, and now are being forced to redefine retirement at midlife.

The 77 million Americans in the Baby Boom generation face an economic storm: The Wall Street meltdown trampled their retirement nest eggs more than any other group. After losing jobs during what they thought would be some of their peak earning years, many are struggling to get back into the workforce. Health care costs are rising, and declining home values mean they might not be able to count on home equity to guarantee an easier retirement.

SAVE EARLY: Tips for building a solid retirement plan

"This generation will be sobered by their experience," says John Coyne, president of Brinker Capital, an investment management firm. "They may not have as extravagant a vision of retirement as they did last July."

The confluence of events has an even bigger impact on a subset of the Baby Boomers known to analysts as the Sandwich Generation. Those Boomers are putting money toward their children’s college education and their aging parents’ long-term care, as well as their own retirement savings.

 

Click to read more.

Technorati Tags: black money,black wealth,african american money,african american wealth

Real Housewife Sheree Loses Her Home

Dusky Real Housewives of Atlanta star Sheree Whitfield just got herself included in the long list of casualties to the economic downturn.  The former wife of NFL player Bob Whitfield reportedly foreclosed her Sandy Springs, Georgia home and was sold for a huge bargain.  The near-9,000 square feet property was initially listed for $2.8 million but was sold for $1.1 mil.

Click to read.

Dr Boyce: America’s Retirement Crisis

by Dr. Boyce Watkins, Finance Professor at Syracuse University

www.TheGrio.com

I hate to be the bearer of bad news. But then again, it must not bother me very much, since I am going to give you a big pile of bad news right now. Given that I earned a Masters Degree in the "morbid science" of statistics, I figured I would start the day by fulfilling my occupational expectation.

The first piece of bad news is that you are going to die. One day, your heart will stop beating and the 2.5 billion breaths you’ll take during your lifetime will come to an end. Hopefully, it won’t be painful, but I can’t guarantee that. The truth is, however, that death might not be the worst part of it all.

The toughest news is that before you die, you are likely going to experience a long, slow period of physical and psychological decline called "old age". In conjunction with this decline, you are going to see your financial resources dwindle as quickly as the muscles in your body. Not only will the scale of your resources decline, but your expenses will likely mount as you go to one doctor’s visit after another, all with the hope of delaying the inevitable. That period of life is called "retirement", and most Americans are not financially prepared for it.

Now that you are sufficiently depressed (there’s no point in lying to you, I’m not very good at that), I will give you some facts to chew on. I also hope that in light of these realities, you will engage in something that the rest of America is not doing: preparing for retirement. While retirement planning has always been important in the past, it has never been more important than it is for you right now. The Perfect Economic Storm is coming, one in which all the scary clouds merge together into one big ball of fiscal devastation that can only be created by God himself. When your financial meteorologist (me) gives you that information, it’s your decision to get your family prepared. Let’s break down the components of the storm, shall we?

 

Click to read more.

Technorati Tags: black money,black wealth,african american money,african american wealth,black scholars,black professors,black news headlines,african american news

Genma Holmes: Tavis, are you holding yourself Accountable?

by Genma Holmes

This is the third in a series of posts about Tavis Smiley and Wells Fargo, sponsor of the State of the Black Union (SOTBU). Everyone is in uproar about Wells Fargo employees calling loans to black mortgage holders “ghetto loans” and the disdain they showed for the customers they made the most profit from. But the media, especially black media, has been very silent about the role Tavis Smiley played in helping stack this ill fated deck of cards that has plagued the black community in several major cities.

When Mr. Smiley first partnered with Wells Fargo in 2005, he was a TEACHER of economic empowerment and assembled seminars around the country as the keynote speaker for wealth building. Press releases filled every major news outlet inbox and black newspapers were infected with faxes stating Mr. Smiley’s desire to teach the principles of home ownership as the key for breaking the cycle of poverty in the African American community. All this knowledge was given at no charge to trusting black folks. This was the golden ticket to obtaining the elusive piece of the pie via Mr. Smiley’s recommendations. Surely the intentions of all involved were pure and Mr. Smiley had vetted Wells Fargo thoroughly. Or so we thought. My granddaddy would say often, “Be wise when someone wants to give you something for free, there will be a price to pay later.”

Here’s what Mr. Smiley and Wells Fargo said in 2005 according to a widely circulated press release:

Wells Fargo Home Mortgage Joins With Tavis Smiley to Offer Free Wealth Building Strategies Seminar in Washington, DC Tavis Smiley and a Host of Financial Experts Share Information About Building Generational Wealth and Family Financial Security

WASHINGTON, Aug. 25 /PRNewswire/ — Wells Fargo Home Mortgage, the nation’s leading originator of home loans to ethnic minority customers, has joined forces with talk show host and author, Tavis Smiley; and several financial affairs experts to provide free Wealth Building Strategies Seminars in eight cities across the country, including Washington, D.C. Additional seminars featuring other popular panelists also will be offered in 12 more cities, nationwide.
The Washington, D.C. event will take place Sat., Sept. 10 at the
Hilton Washington, 1919 Connecticut Ave., NW, from 9:00 a.m. – 4:00 p.m. For more information, or to register for the event contact 866-275-8584 or visit http://www.wellsfargo.com/wealth.

"African-American households had $656 billion in earned income in 2003, an increase of 3.9 percent over the previous year*," said Jackson Cosey, senior vice president of emerging markets, Wells Fargo Home Mortgage. "The Wells Fargo Wealth Building Seminars will teach attendees the best route to make their income work for them over time through homeownership, investments and credit improvement while simultaneously helping them plan for their financial futures."
The free day-long events will feature interactive sessions and one-on-one meetings with financial experts, real estate professionals and Wells Fargo home mortgage consultants who will share information on building generational wealth and family financial security. In addition, the Wealth Building Strategies Seminars will include a keynote address by Tavis Smiley, the first person to ever simultaneously host signature talk shows on both the Public Broadcasting System (PBS) and Public Radio International (PRI).

Other cities on the Wells Fargo Wealth Building Strategies Tour include
Los Angeles, Richmond, Va., Dallas, San Francisco, Philadelphia, Chicago and Baltimore.

"All families dream about home ownership, college education, world travel and more but may not know the best steps to becoming financially independent,” said Smiley. "I am thrilled to be a part of the Wells Fargo Wealth Building Strategies Seminars tour because I truly believe this event offers attendees the fundamental tools they need to make their dreams a reality."

In addition to Smiley, acclaimed financial authority Kelvin Boston, host
of PBS’s financial affairs series "MoneyWise with Kelvin Boston" will be among the event speakers. The Wells Fargo Wealth Building Strategies Seminar also will feature interactive breakout sessions focused on topics including real estate, investing, and credit. Each seminar will feature a panel of experts who will provide a range of information related to their topic followed by a question and answer session. Following the breakout sessions, panelists will be on hand to meet privately with attendees to get advice related to their specific issues.

The Wells Fargo Wealth Building Strategies tour is just one of many
initiatives that showcase Wells Fargo’s commitment to its customers and the African-American community. Other programs include the African-American Business Services program which supports economic development in the African-American community and their Afro-centric branch designs which reflect the local African-American community and celebrate its heritage.

Wells Fargo Home Mortgage is the nation’s No. 1 retail mortgage lender**, the No, 1 lender to low- to moderate-income and ethnic minority customers, and one of the country’s leading servicers of home mortgages. It operates the country’s largest mortgage network from more than 2,300 mortgage and Wells Fargo banking stores and on the Internet. Based in Des Moines, Iowa, it services loans for over 5 million customers nationwide.

(Source: Wells Fargo/PR Newswire)

Click to read more on Genma Holmes’ Blog

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Dr Boyce: The Capitalist Enslavement of Black America

I recall giving a speech at a university in Upstate New York. We were talking about wealth building for the Black community and how Black folks can remove themselves from the underbelly of American capitalism. I’d heard this school had a reputation for strong liberalism and I was looking forward to addressing the audience. A young white female in the back of the room raised her hand to ask me a question. She said "How can you support a system that enslaves people?"

The woman was clearly offended by my mere presence as a financial expert and apparent supporter of capitalism. I could immediately tell, that no matter what my answer was, she was going to hate me and wish death upon my children. She didn’t realize that I am not just a Finance Professor, but also a closet socialist in many contexts. While I am not one who wants to live in a socialist society, I do understand that capitalism and socialism must balance one another in any society that alleges to embrace human compassion.

Click to read.

Technorati Tags: black money,black scholars,african american money,african american scholars

Magic Johnson Cashes in on his Urban Connection

LOS ANGELES (Fortune Small Business) — As an NBA Hall of Famer, Earvin "Magic" Johnson faced down such giants as Larry Bird and Julius Erving. Diagnosed with HIV in 1991, Johnson has fought off full-blown AIDS for the past 18 years. Now, as a coffee shop proprietor, he’s fighting his latest battle against…scones.

"My customers in urban America are so skeptical, we have to win them over," he says — and the skepticism extends to exotic pastries. "So in my Starbucks, we serve sweet potato pie."

Sixteen years after retiring from pro basketball, Johnson is finding almost as much success as a small business owner as he did on the court. Magic Johnson Enterprises, a private Los Angeles-based company, has 35 employees and assets of more than $700 million. It works with local entrepreneurs to open franchises in inner-city neighborhoods across the U.S., and has signed a unique deal with Starbucks (SBUX, Fortune 500) that allows MJE to open franchises and split the revenue fifty-fifty.

Now Johnson is advising big-box stores such as Best Buy (BBY, Fortune 500) on how to crack urban markets once the economy allows the stores to expand again. The key, he says, is paying attention to customers. When Johnson makes public appearances — as he does about 100 times a year — he isn’t just signing autographs. He also gives his office phone number to any customer who complains to him personally, even if the problem is a dearth of sugar packets. If the problem persists, he wants to know about it.

"Minorities appreciate that, because we are used to corporations coming in, opening up their building, but then disrespecting us with their service," Johnson says. "If you don’t engage us, we’re going to cut you off our list."

 

Click to read.

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Detroit Becoming a Hot Bed for Real Estate Purchases

NEW YORK (CNNMoney.com) — As Detroit home prices in Detroit crash, sales are heating up. But with all of the plant closings and layoffs, who’s buying? Investors — some of whom are snapping up five and 10 houses at a time.

"I have investors from all over the country and the world," said Jeremy Burgess, co-founder of Urban Detroit Wholesalers, which buys undervalued homes to rehab and rent or to sell to other investors. "One Lithuanian woman just bought a second house."

"Most of the local investors are out of money," added Mike Shannon, who specializes in Detroit foreclosures and has clients from New Zealand, Australia, England and other places.

Recently a Californian purchased 178 properties, mostly one at a time, and most for under $10,000. Another has purchased six Detroit properties since September and hopes to begin buying five a month.

"The capital needed to get in the Detroit market is so low," said Jason Imbruglio, a 29-year-old from Tacoma, Wash., who has bought three homes so far.

Two years ago, he paid $12,000 for a two-family house with two bedrooms and a bath in each unit. He spent $18,000 repairing it for a total cost of about $30,000. Imbruglio has kept tenants in both apartments most of the time and charges $1,100 a month. After taking into account the 10% he pays a management company, plus utilities, property taxes and maintenance costs, he says he is making double-digit profits.

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Wells Fargo’s Alleged Cheat of the Black Community

by Dr. Boyce Watkins

www.BoyceWatkins.com

Tavis Smiley needs to have a conversation with one of his primary sponsors, Wells Fargo. This week, it was announced that Wells Fargo is being sued by the city of Baltimore for egregiously racist predatory lending practices in the black community. The company has been accused by some former loan officers of targeting subprime, low quality loans to black neighborhoods, leading to a dramatic economic collapse for the black community of Baltimore.

The statistical evidence is daunting. Half of all the properties foreclosed by Wells Fargo are vacant and 71% of those properties are in black neighborhoods. Wells Fargo’s African American borrowers with incomes greater than $68,000 per year were 8 times more likely to hold subprime loans than white borrowers with the same income.

Dr. Christopher Richardson, one of the world’s leading experts on predatory banking, states that, “There are virtually no federal laws prohibiting predatory lending like those that prohibit explicit discriminatory pricing or redlining.” Richardson, who is a former fair lending economist with the Justice Department, goes on to state that, “They essentially have two different banks – a prime bank (for lower-risk borrowers with low default rates) and a subprime bank (for higher-risk borrowers). They market the subprime bank in minority neighborhoods, and the prime bank in non-minority ones. The advertising might be misleading, too, so as to make the subprime customers think they’re working with the prime bank (“Wells Fargo Financial” vs. “Wells Fargo Home Mortgage” sound pretty similar, for example). So, if everyone in the prime bank is treated equally regardless of race, and likewise for everyone in the subprime bank, then the bank as a whole will look like it’s not breaking the law.”

To read more of Dr. Richardson’s comments in detail, please click here.

There is a deeper and more serious concern with the stunning accusations being thrust against Wells Fargo, and this involves Tavis Smiley.

Wells Fargo is one of the primary sponsors of the State of the Black Union conference held annually by Mr. Smiley. The State of the Black Union is a respected event, in which scholars and leaders in the black community get together to discuss policy for African Americans. There is an element of trust granted to the forum that the speakers will provide recommendations for consumer choices that are ultimately healthy for the black community.

One can remember a scene in the movie, “American Gangster”, where the drug dealer Frank Lucas gave away turkeys and Christmas presents to justify the fact that he was simulteanously working to get the neighborhood addicted to heroine. Should the accusations against Wells Fargo have merit (which may be the case, since many organizations and governments around the nation are suing them for similar practices), then one must wonder if there is a secondary agenda in their decision to sponsor the State of the Black Union so heavily. Do they feel that a payoff to Tavis Smiley will help them persuade African Americans to come into their banks for predatory loans? Should Smiley take such funding without there being an appearance of impropriety? In order to maximize profits, you can see how Wells Fargo could stand to give a few thousand dollars to a leading black conference if that were to lead to millions in additional banking fees.

Click to read the rest of this article on AOL Black Voices

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Ryan Mack: Black Financial Expert talks about Keeping Your Home

Black finance expert Ryan Mack brings us advice from a place of real heart to help hard-working Americans deal with the mortgage mess. With his warm brand of personal finance advice, Mack’s strongest words to the community are: “If you are having problems paying your mortgage DO NOT WALK AWAY FROM YOUR HOME!” In part one of our two-part interview, learn more about how we got into this housing crisis, how it has affected the general economy and what you should do now to protect your home.
How did you become a finance expert? What inspired you to pursue this goal?
When I was on Wall Street making great money I felt empty, because I was not an effective contributor to my community. I knew that finance was my passion, but I also knew that sitting in a cubicle making money only for the sake of self-empowerment was not my purpose.
Like too many families in America, many people in my family were not financially literate. My passion was to change that. In addition, I was always getting asked personal finance questions from peers who knew I was a stock trader. But trading is different from personal finance. To address these questions, I began to study personal finance and started a Yahoo group called MakingMoneyWork, which provided tips and strategies to over 200 members through weekly newsletters.

 

I loved this so much, I decided to pursue a full-time career in personal financial planning. I got an offer from a financial planning firm, but I turned it down at the last minute because after expressing my desire to educate my entire community I was told, “unless you work with ONLY high net worth individuals, you are wasting your time.”

I was not going to quit a job that did not allow me to help my community, only to take a job where I could not help everybody, rich to poor. This inspired me to start my own firm that placed a high value on educating the average person. This new idea for a democratic financial planning firm required that I take a year off to develop my plan, create a personal financial literacy course (that I taught at local colleges), and read extensively on personal finance. I then walked the community, reaching out and teaching any group I could find.

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Dealing with Borrowers in your family

You are the one who went to college, got the Wall Street job, went on exotic vacations around the world and bragged about them to your cousins back in Detroit at family reunions. Now you are unemployed and more family members than ever have their hands out. How do you determine who to "lend" money to or whether you should be lending money at all? Here are a few tips.

1. First, make sure your family is aware of the changes to your financial circumstances. Whether you are unemployed, your annual bonus is nonexistent or you recently overheard the executive assistants gossiping about cuts in your department, it is important to communicate this to family members so they know that your baller tendencies are on hold. Be considerate of their circumstances when you communicate this message. Telling them that you "downsized" your Buckingham Blue Range Rover to a Lexus Rx Hybrid to save money on gas is likely to get you little to no sympathy. Talk in terms of percentages; say things like, "Yeah, the economy really sucks, without my bonus this year I will make 50% less so I am cutting back." Communicating that you are also tightening your financial belt should make your family think twice before they ask you for money.

2. If you are still approached by family members for money, it is important to assess whether this is a recurring problem or a one-time ask. If the same family member always has their hand out, their money issues may be symptomatic of larger core issues (depression, gambling, living beyond their means, etc.). Have a heart to heart with your family member to try to unearth what may be at the root of their money problems. Then, if you discover a bigger issue, be supportive and help them to address the issue directly. Do not give them more money, no matter how bad they say they "need" it, it will only result in them coming back to you for more of the same a few months down the road. Instead, offer to pay for debt counseling or a gym membership – whatever helps them address their core issue.

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Professor Comments on Wells Fargo’s Alleged Exploitation of African Americans

Dr. Christopher Richardson

Dr. Christopher Richardson, one of the world’s leading experts on predatory lending and banking, comments on a recent report that Wells Fargo, one of the sponsors of the State of the Black Union event held every year, is being sued by several government agencies due to accusations of financially exploiting and deliberately misleading the Black community.  Dr. Richardson’s comments are below:

“The article is on point.  Of course, accusations of predatory lending perpetrated by major banks are nothing new.  (As a former fair lending economist in the housing and civil enforcement section of the Department of Justice’s Civil Rights division, I should know.)  One problem not mentioned in the article is that there are virtually no federal laws prohibiting predatory lending like those that prohibit explicit discriminatory pricing or redlining.  It’s fairly straightforward to prove discrimination in a court of law if two borrowers, one Black and one White, go into the same bank at around the same time with similar credit profiles, apply for the same type of loan product, and the Black borrower walks out with a more expensive loan.  But most large lenders like Wells Fargo are smart enough to keep that from happening.  Instead, they have essentially two different banks–a prime bank (for lower-risk borrowers, with lower rates) and a subprime bank(for higher-risk borrowers, with higher rates)–and market the subprime bank in minority neighborhoods and the prime bank in the non-minority ones.  The advertising might be misleading, too, so as to make the subprime customers think they’re working with the prime bank ("Wells Fargo Financial" versus "Wells Fargo Home Mortgage" sound pretty similar, for example).  So if everyone in the prime bank is treated equally regardless of race, and likewise for everyone in the subprime bank, then the bank as a whole will look like it’s not breaking the law, even though it may be exploiting Blacks by running them all though the subprime bank.

There are several things that can be done to stop predatory lending.  I think the most important thing is to create strong federal anti-predatory lending laws that clearly define what types of loans can and cannot be made, whether prime or subprime.  Anti-predatory lending laws have to be federal to achieve consistent enforcement in all states.  And the laws have to be strictly enforced, either by the Justice Department or an independent agency of the sort Professor Elizabeth Warren proposed to Congress in her recent report on financial regulatory reform.  (Don’t let the bank regulatory agencies enforce predatory lending laws; they’re too deep into the pockets of the banking industry and vice versa to get the job done.)  More financial literacy can help but only so much, because the choices consumers make will only be as good as the options available to them.”

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Good news in the job market

NEW YORK (CNNMoney.com) — The number of Americans filing for initial unemployment insurance fell more than expected last week, but ongoing claims ticked higher, according to government data released Thursday.

There were 601,000 initial jobless claims filed in the week ended June 6, down 24,000 from 625,000 the previous week, the Labor Department said.

Economists expected 615,000 new claims, according to a consensus survey by Briefing.com.

"It was a solid improvement," said Adam York, analyst at Wachovia. "These are good signs that we may have seen the peak."

The 4-week moving average of initial claims was 621,750, down 10,500 from the previous week’s revised-up average of 632,250.

"That means the job market is starting to get at least ‘less worse,’" York said. "The pace of decline is improving, and we aren’t seeing huge layoffs like those in January and February."

 

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From Sports to Money: Making the Transition

Jason Robertson is a man of many gifts. As an young man, he was an All-American baseball player, drafted by the New York Yankees straight out of high school. He was also listed by Essence Magazine as one of the most eligible bachelors in America for his good looks and success. If that were not enough, Jason retired from baseball and re-invented himself as a leading, award-winning entrepeneur.

Besides being a model of success for his 3 sons and celebrating his engagement to fiance Marshawn Evans, Jason is on a mission to teach other young men how to make the transition from successful athlete to outstanding businessman. Black Voices got a chance to catch up with Jason.

1) What do you do for a living?

I own an industrial packaging company. We sell corrugated boxes, bags, films, pallets, and we also provide warehousing and storage.

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Car Loans Tough to Come By

Auto dealers are using rebates, discounts, and other incentives to lure buyers back into their showrooms. But once they get customers through the door, dealers are still battling an issue that has troubled the industry for months: a lack of financing.

Brandon Schaefer, the owner of Nationwide, a string of dealerships in Timonium, Maryland, says foot traffic has improved, but lending has not. "About twice as many people as before are getting turned down for loans," he says. "The guidelines continue to get stricter."

Some lenders have said in recent months that they would try to cut more deals. After GMAC received TARP money in December, the auto lender — reborn as a bank — announced plans to set aside $5 billion for new contracts and promised to consider applicants with credit scores as low as 621. But despite having lower standards, GMAC still originated just $3.4 billion worth of loans for new vehicles in the first quarter, down from $13.1 billion in the same period last year.

Spokesperson Michael Stoller says the bank lowered its bar again this spring. "We want dealers to send business our way," he says. "We’re looking at applications from customers with scores below 620."

Of course, looking isn’t approving. Jeffrey Knott, a Florida based dealership consultant, says one of his customers received a rejection from GMAC a few days ago despite having a FICO score of 652. Though Knott says GMAC is "working harder than other banks" to improve the situation, situations like these persist: "Getting loans is still the number one problem for auto dealers right now," he says.

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Pres Obama Says He Wants to Balance the Budget

President Obama on Tuesday proposed making "pay-as-you-go" rules for federal spending into law.

President Obama proposed Tuesday that the government adopt "pay-as-you-go" rules for federal spending.

The so-called PAYGO proposal requires Congress to balance any increased spending by equal savings elsewhere, Obama said in announcing the measure that now goes to Congress.

A previous PAYGO mandate helped erase federal budget deficits in the 1990s, and subsequent ineffective rules contributed to the current budget deficits, Obama said. Now the PAYGO rules should be the law, he said.

"Paying for what you spend is basic common sense," Obama said. "Perhaps that’s why, here in Washington, it’s been so elusive."

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Tavis Smiley Sponsor Wells Fargo Accused of Targeting Unfair Loans to Blacks

As she describes it, Beth Jacobson and her fellow loan officers at Wells Fargo Bank “rode the stagecoach from hell” for a decade, systematically singling out blacks in Baltimore and suburban Maryland for high-interest subprime mortgages.

Enlarge This Image

Matt Roth for The New York Times

A foreclosed home on Barclay Street in Baltimore. The city is suing Wells Fargo Bank over its mortgage lending practices in black neighborhoods.

Enlarge This Image

Matt Roth for The New York Times

Another foreclosed house on Baltimore’s North Brice Street, which shares a downed fence with a house still lived in.

These loans, Baltimore officials have claimed in a federal lawsuit againstWells Fargo, tipped hundreds of homeowners into foreclosure and cost the city tens of millions of dollars in taxes and city services.

Wells Fargo, Ms. Jacobson said in an interview, saw the black community as fertile ground for subprime mortgages, as working-class blacks were hungry to be a part of the nation’s home-owning mania. Loan officers, she said, pushed customers who could have qualified for prime loans into subprime mortgages. Another loan officer stated in an affidavit filed last week that employees had referred to blacks as “mud people” and to subprime lending as “ghetto loans.”

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Dr. Boyce: Credit Cards are the New Addiction

In an interview with NPR’s Michel Martin, I explained how credit card companies are really financial drug dealers. While this comparison might initially seem out of the park, it is actually quite appropriate: Credit is like a drug: it makes you feel good, and it is difficult for most Americans to feel secure or comfortable without it. Also like a drug, credit can be abused. Americans are hooked on consumption and credit card companies are willing to serve us our drug to the point of financial ruin.

The difference between financial drugs and medical drugs is that most financial drugs are legal, no matter how harmful they might be. In 1979, Congress got rid of usury laws, allowing credit card companies to charge darn near any interest rate they wanted, any fee they felt applicable and any penalty they felt you deserved. In other words, the legalized financial drug dealers were allowed to run rampant and sell as much of their product as the addicts could consume.

 

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Dr Boyce and DJ Free (106 & Park) Talk about Money

Dr Boyce gives advice to DJ Free (formerly on BET’s 106 & Park) about financial fitness and how to get your financial life together. How do you change your life when you’ve made financial mistakes? How do you get rid of toxic people in your life who are draining your financial resources? Dr Boyce and Free discuss how to have good financial health, R. Kelly and how to get your money right.

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How Does Your Financial Situation Compare with Most Americans?

Polonius wouldnt have gotten very far in America today. He’s the Shakespeare character in Hamlet who warned, neither a borrower, nor a lender be.

Modern society, as we know all too well, is overrun with both borrowers and lenders. But just how big is the typical family’s debt? How fast is it growing? How does your mortgage compare to the Joneses next door? And how might consumer debt — your debt — affect the U.S. economy?

We decided to look at the most recent numbers and take a snapshot of household debt in the United States, circa 2004. What emerges is a picture that’s both familiar and unsettling. Yes, consumer debt — encompassing credit cards, mortgages, student loans and more — is growing like a well-fed St. Bernard puppy. No, there’s no sign that the growth will slow. Yes, some economists worry about the ill effects, but no, not many of them are sounding urgent alarms.

 

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Pending Home Sales Numbers Start to Rebound

The number of home sales contracts signed in April continued to bouce back from record lows hit last winter, according to a widely watched industry report. This is the third consecutive month of gains.

The Pending Home Sales Index from the National Association of Realtors rose 6.7% in April after jumping 3.2% in March. That was far above the forecasts of experts surveyed by Briefing.com, who predicted a 0.5% increase. The index was 3.3% higher than 12 months earlier.

Pending home sales are a forward-looking indicator since many of the contracts don’t result in completed deals for many weeks or months.

 

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Boyce Watkins and Michelle Singletary Talk Bankruptcy on NPR

Dr Boyce Watkins is set to appear on the NPR show, “Tell Me More with Michel Martin” on Tuesday, June 2, 2009.  The two will appear, along with Michelle Singletary of the Washington Post, to discuss the difference between personal and corporate bankruptcy.

 

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Dr Boyce Money: What You Need to Know about Barack Obama’s Credit Card Bill

Click the image below to hear what Dr. Boyce Watkins has to say about the new credit card legislation signed by President Barack Obama:

 

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Mike Tyson’s Daughter and Child Life Insurance

The death of Exodus Tyson, daughter of former heavyweight champion Mike Tyson, brings immediate tears to the eyes. As a single father of three daughters, my heart becomes heavy at the thought of losing any of my precious little girls. I also fear what might happen if I were to suddenly pass on myself. While the pain of death is severe and complicated, there is always a lesson to be learned from the experiences of others.

In this case, there is the serious and gut-wrenching task of planning for the possibility that you may have to bury your child. In the black community, such issues are compounded by the alarming death rates of black teens in the inner city, higher infant mortality rates and reduced access to health care for African Americans. In light of our unique experiences and circumstances, we must be careful and intelligent in our financial planning.

How do you plan for your child’s death? Is life insurance even necessary? Let’s break it down and figure it out together.

Full Coverage >>

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Auto Industry Shows Death of the American Dream

There was a time, not very long ago, when getting a job on the production line at a big automaker meant an instant ticket to the American dream, even for someone with little formal education. Not anymore.

"The minute you signed the paper, you were instantly vaulted into the middle class," said Mike Smith, director of Wayne State University’s Walter P. Reuther Library in Detroit, named for the founder of the United Auto Workers, the union that represents auto workers.

A shrinking paycheck. As the auto industry undergoes a sea change, the government has demanded that Chrysler and General Motors (GM, Fortune 500) bring their labor costs in line with foreign competitors operating non-unionfactories in the U.S.

Today, an entry-level auto-worker will be making $14 an hour, compared to the $28 "base rate" the job had earned before, according to a summary of Chrysler’s contract agreement.

Worker’s benefits have also taken a hit.

"Workers coming in will have good benefits and a good wages but not necessarily what they were 20 or 30 years ago," said Smith.

 

Click to read.

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Meet Ursula Burns

Posted on AOL  Black Voices May 26th 2009 9:21PM by Dr. Boyce Watkins, PhD
Filed under: Money Talks

The stock market talks with money: it tells you what it thinks about corporate decisions by how the stock price moves. If the price goes up, the market likes you. If it goes down, investors are angry. The market likes Ursula Burns. Ursula’s appointment as CEO of the Xerox Corporation led to a 2.2% one day increase in the company’s stock price and applause from Xerox shareholders around the world. In addition to inspiring the market, Burns has energized an army of black women and men by becoming the first black female to ever take the reigns of a Fortune 500 company.

With the recent announcement that Burns will take over Xerox on July 1, the company has surpassed a milestone for black women that is long overdue. Even without regard to all the Xerox copies that will be made during her time as CEO, Burns will surely be creating copy cats of her own within the black communty. Young women everywhere are inspired by Burns’ achievements, and she is now a part of history. But what does the promotion of Burns say about the state of black women in corporate America? Have we hit the finish line?

"This occassion is unequivocally, a cause for celebration," says Dr. Kendra Harris, Assistant Professor of Marketing at North Carolina Central University. "That said, this kind of ‘first’ nearly a decade into the 21st century is a sad testimony to systemic lack of awareness of the talent among the ranks of minority women."

Continue reading Dr Boyce Money: First Black Female to Run Fortune 500 Company

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First Black Female CEO of a Fortune 500 Company – Black Scholars and Professionals Comment

 

With Ursula Burns being recently appointed as the first Black CEO of a Fortune 500 company, the Black community had a lot to say.  Most importantly, Black women and men in academia, law, and the professional world shine light on various points of view that should be considered as the nation celebrates the achievements of Burns and the Xerox Corporation.

Dr. Julianne Malveaux – President of Bennett College for Women:

“Glass ceilings are shattering and sisters are celebrating this amazing milestone. After the dust clears, let’s focus both on the glass ceiling and the sticky floor that suppresses the wages and salaries of most working women.”

 

Dr. Mary Stoddard, Attorney at Law – Stoddard,  Parks & Associates, PLLC:

“Having the first black female CEO of a Fortune 500 company is greatly past due. The value of a segment of the population that has been the fundamental cornerstone to the growth and development of this country is long due our nation. Because one black female has been bestowed the job, that does not remove the many who are qualified and denied the opportunity because they are a black woman.”

 

 

Dr. Debbie Stroman – CEO of the L.A.S.E.R.™ (Life After Sports With Effective Results) Institute and Professor at The University of North Carolina at Chapel Hill:

“Burns’ hire is inspirational and very strategic. With Pres. Obama’s seat at the highest table, it has now become prudent and most practical to allow one’s best and brightest to shine. This move is an example of how affirmative action can really work to positively affect change. All we ever need is just an opportunity. Also, much kudos to Mulcahy (the former CEO of Xerox) for demonstrating the power of ongoing support for Black leadership in business. Back to back now has another meaning besides its usage in basketball!”

 

Kimberly S. Reed

Managing Partner, Reed Development Group LLC

“Today is an historic day for many, specifically for Hispanic and African American women. We salute and congratulate Judge Sonia Sotomayor and Ursula Burns, two dynamic leaders who some say have reached the pinnacle of professional endeavors. We still have to work harder, smarter and more strategic than our male counterparts. Diverse leadership is a business IMPERATIVE and Xerox has shown the US that an African American woman is now being valued and elevated for the strategic leadership, strength, knowledge and business savvy it takes to run a Fortune 500 company.”

 

Dr. Carlous Caple (President/CEO – Caple Global Associates LLC – an IT and management consulting firm in NC):

“The announcement of Ursula Burns as President of Xerox Corp is significant in that it strengthens the legacy of Black female entrepreneurs, and demonstrates the power of perseverance in overcoming obstacles when confidence and expectations are practiced in any household, under any circumstance.”

 

 

Tessie Clements, Attorney at Law – Tuscaloosa, Alabama:

“Women have to keep pushing for equality in all professions. We cannot and will not settle for the status quo. She is just another sign that women have no limits in our capabilities. We must continue to demand our seat at the table.”

 

 

 

Dr. Kendra Harris, Assistant Professor of Marketing, North Carolina Central University:

“This occasion is unequivocally, a cause for celebration. That said, this kind of “first” nearly a decade into the 21^st century is a sad testimony to systemic lack of awareness of the talent among the ranks of minority women.”

 

 

Sheri Mitchell – Democratic Candidate for Cicero NY Town Clerk and mother of a Black female student at Columbia University:

“It is wonderful to see one of our own breaking yet another barrier. I am sure this is just one of may firsts for Ms. Burns. With each obstacle she overcomes that is one less our children will have to encounter.
Where some might become complacent with a Masters in Engineering from Columbia University, Ms, Burns has continued to be an inspiration to young African American women. We look forward to see where else she leads us.”

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