This month’s Index reflects an economy in the doldrums. Although the Composite Index increased 1.2 points this month, it is down 2.2 points from this time last year. Retail and Employment are up, Home Sales, Hospitality and Lumber showed declines. Again our thanks to Dr. Eschker and his hardworking team.
When I saw that strange-looking letter, I knew it meant trouble. Here was a letter from BOTH North Valley Bank and Tri-Counties Bank, which has absorbed them. At the bottom were TWO signatures, one from each bank. When I worked at Pearl Harbor, the CO used to say, “Split responsibility is no responsibility.” The Old Man was right.
The letter was dated October 3 and notified me that as of October 25, a new servicer, Tri-County, ‘will be collecting your mortgage payments from you” and exhorted me to send all payments due on or after October 25 to TriCounties Bank at a Chico address. I called both numbers to find out that to expect. My mortgage payments are automatically deducted from my Coast Central account. I called Coast Central and both of the numbers on the letter. No one knew anything except that one person thought that TriCounties would be sending me a letter, maybe even telling me what my new account number would be. Nothing came.
I called Tri-Counties again and was told that all the information was in the packet that was sent to me. I explained that no packet had been sent. Finally they told me to visit the TriCounties branch after November 1. On the morning of Monday , November 3, my mortgage payment cleared! Now I could avoid a useless trip to Tri-Counties, right? Oh no, I called and was told by a nice young lady that I had to come in, anyway. I obediently drove to their branch, which was having the signage changed. It turned out the only reason for making me come in was to pick up the stupid packet, WHICH THEY COULD HAVE MAILED TO ME.
Now that I know Tri-Counties is in such dire financial straits that they cannot afford first-class postage and an envelope, I will be following their fortunes with renewed interest.
Meanwhile, a Friend of the Blog filed the following:
“I tried to simply cash a small $260 check (usually $300) from my wife, done monthly , mostly in McKinleyville’s CCCU. Both of us have an account at CCCU. I told the teller my member #. I assume somewhere on their screen it would show that I have 10Kin checking alone. I have lived at the same home address with the same phone number for 43 years and have been a member of CCCU for decades. My CDL was expired and the clerk was not going to let me cash the check without an unexpired CDL. When I pointed out much of the above, I was told that next time I would need an unexpired CDL. I asked the teller to ask management why? Are they law enforcement? What next, you need to be a currently licensed driver? I have both a current license and a CA ID card. I have never had a point against my license since I started driving at age 15 1/2. DMV is using the same photo for both. My credit score is well above 800. I have a VISA with CCCU. I have two monthly deposits from CAL-PERS and Social Security into this CCCU’s checking. DMV never asked for the expired license. I held onto it thinking it would be a valid Government issue photo ID- not at CCCU. What a tale of woe.”
What a tale of woe, indeed. Whatever happened to recognizing your customers?
I drop into Tasty Tacos (in Cutten, on Walnut) every week and when Tom announces “Julie, you’re order’s ready,” all’s right with the world. The banks should be learning from small business. Boy, should they.
I don’t profess to be a “Famous Humboldt blogger” like our friend Fred. (Fred has a good sense of humor.) And I have to confess that I haven’t been as involved in politics as I normally am, due to family and health issues, but elections are important and I’ll put my two cents in. I think most of you know that I’m a nonvoting member of the HCDCC, and a lifelong Democrat.
Eureka City Council- this is the easiest call. Natalie Arroyo and Kim Bergel are like a breath of fresh air compared to their undistinguished opponents, about whom the less said the better. Give these two women a shot. You won’t regret it.
Fair Wage (Prop R)- I just accosted John Forrest, the owner of Hole-in-the -Wall, down at the store. I had not visited my favorite sandwich place in some weeks because I was so irritated at his apparent callousness in remarks reported by the Times-Standard. Then on Saturday, while I was struggling with my groceries in the Winco parking lot and the rain was starting to fall, one of the HITW employees saw me and helped me. Now I’m a regular again because of his STAFF. Mr Forrest is a genial guy but no one patronizes HITW because of him, it’s because of the STAFF. I hope the Fair Wage initiative passes. Yes, I know prices will rise. As an old lady on a fixed income, I’ll manage and so will others. There has been more ugliness and hypocrisy around this issue than any I can remember and it has been dismaying to behold.
No GMOs (Prop P)- If the family farmers who bring us the Farmers’ Markets and enhance our quality of life so much are for it, then I’m for it. ‘Nuff said.
FInally, the public safety measures, County Measure Z and Eureka Measure Q, are certainly worthy of your support. Thanks to ALL the candidates and campaign workers for giving your time.
Social Security wants my sister’s birth certificate. Her copy is in a storage locker in Sonora, she thinks. I head down to the Courthouse. It’s drizzling.
For the first time ever, I try parking in the gravel lot at the North end of the building. Big mistake. I drive a lowslung car. The lot consists of huge cavities in the gravel. My car rocks back and forth as I pull into a space, listening to the oil pan scraping the gravel. I wouldn’t call it “accessible” but at least it’s on the same block. After a long, long walk back to the front entrance, I go through the security line. A table near the elevator is marked “Courthouse Information.” A young man fields inquiries while not missing a beat of his cellphone conversation. I need to go to the 5th Floor, which means going to the 4th, then switching elevators to ride to the 5th.
I enter the offices of the Clerk/Recorder. The view from here is normally stunning, but today it’s gray and dismal. There are four or five workers inside and one woman who appears to be doing research of some kind. The workers approach helpfully. I only need one.
I have already downloaded and filled out the request form. A pleasant man says he’ll be back in five minutes. He is. I pay the $25 for a super-official document because I really don’t know what kind they want.
In the elevator I look at the certificate. I remember her doctor, a nice man who died in a plane crash, leaving a young family. Remembering him makes me sad.
The drizzle continues.
The Humboldt Economic Index. produced by Dr. Erick Eschker and his team at the Economics Department of HSU, does not show a pretty picture this month. The leading indicators are, shall we say, mixed.
Lumber is up, but Hospitality, Retail and Home Sales were down in July, as were building permits and help-wanted advertising. On the positive side, manufacturing orders are up slightly and UI claims are down. The national jobless rate declined to 6.1 percent in June while the unemployment rate was 7.2, virtually the same as the State as a whole.
Here’s what you’ve been waiting for: gas prices. “Both California and the Northern California region have seen 8% decreases in their average gas prices this month, while Eureka’s average price stayed at $4.25 in June.” Enjoy the report, and our continued thanks to the HSU team.
PART ONE: Imagine there were a company that offered on-line shopping, business-to-business sales, online payments, wholesale trade and cloud computing- in other words a combination of eBay and Amazon that is actually bigger than eBay and Amazon combined. Welcome to Alibaba.
Started by a schoolteacher named Jack Ma on his kitchen table in Hangzhou in 1999, the company, now based in Hong Kong, is about to launch what may be the biggest initial public offering in history, one which could easily surpass Facebook’s fumbled IPO of $16B in 2012. Why will be the biggest beneficiary? Yahoo, which owns 24% of Alibaba and will probably use the infusion of cash from the IPO to continue its buying spree of smaller tech companies. To give you an idea of the scale, Alibaba processes $248B in retail sales yearly. Here’s a description from the Mercury News:
‘”Nearly 8% of all Chinese online shopping goes through Alibaba sites; on Singles Day last year, a popular holiday in China for online shopping, the site processed $5.8B in in purchases. By comparison, eBay’s total sales on its online marketplace for all of 2013 were $6.8B.”
Alibaba is also moving into mobile commerce in a big way, investing in American companies like Mountain View -based Tango Me and in Lyft, the San Francisco -based ride sharing app, while attempting to consolidate its position amidst its nearest rivals, Baidu and TenCant, which is already rolling out its own IPO. (Google and eBay have departed the China market). Alibaba’s IPO was scheduled for August 8 (eighth day, eighth month- the Chinese like “8”s) but may be delayed due to last-minute glitches involving SEC approval of some of their subs which are based in the Cayman Islands. Ma, who is worth over $8B, has stepped down as CEO but remains as Chair of the 21.000 employee firm and is devoting his time to a charitable trust.
It’s a global economy for sure, and becoming more so every day. Wonder how long it will be before we start seeing Singles’ Day promotions? That ‘s too good an idea to skip.
PART TWO: The Analects of Jack. The early history of Alibaba is set forth in a documentary and a book (Alibaba, by Liu and Avery, 2009) which describes how at one time in the early days, Ma was literally kidnapped and held hostage in a Malibu mansion at gunpoint until he talked his captor into going into business with him). Ma only got into college on his third entrance exam but his English major has definitely been put to good use in the following phrases which were compiled by American City Business Journals from various interviews and an appearance on Charley Rose that I’m sorry I missed. Here’s a sampling.
Why he likes small businesses and tries to help them through Alibaba: “I’ve seen people make a fortune by catching shrimps, but I’ve never seen anyone make a fortune by catching sharks and whales. It’s like Forrest Gump.”
On putting customers first: “It’s customers No, 1, employees, two, and shareholders, three. It’s the customer who pay us the money, it’s the employees who drive the vision, and it’s the shareholders who when the financial crisis comes, these people ran away. My customers and my people stayed.”
On technology: “I know nothing about technology. I use the computer to browse the Internet and receive email. That’s it.”
On developing a business: “If you want to be a great company, think about what social problem you could solve.”
On money and Alibaba’s large cash reserves: “When you try to solve problems with money, that is when your real problems start. A company’s assets are like a country’s armed forces.You cannot use it lightly, but if you ever need to mobilize it, you must win.”
A new law just signed by Governor Brown (AB 2486) and effective immediately allows wine and cider tasting at Farmers’ Markets under the following conditions:
-The wineries (or cideries) must grow ALL the fruit in their product
-Only one winery can hold tastings on a given day
-Each Farmers’ Market can determine whether to hold testings
-The tasting area must be cordoned off
-Samples are limited to 3 ounces of wine or cider per adult customer.
The bill, which was authored by Assemblyman Mark Levine, D-San Rafael, passed both houses UNANIMOUSLY.
The delightfully named Portia Bramble of the North Coast Growers’ Association reported that Winnett Vineyards from Willow Creek would be a likely participant at the Arcata Farmers’ Market, at least by next season. This is one story which does not seem to have a downside.
Don’t read this if you’re looking for good news for airline passengers. A friend of the blog compiled the following links which show that no matter how bad it gets, there’s always room for worse.
1. You’ve noticed the carriers imposing more and more fees along with the regular airline fares? Try 1200% in the past seven years, like from $2.4 B in fees in 2007 to $31.5 B in 2013. More carriers are counted in the later figures but the fees are all coming from the same source: you. 60% of these fees are from the sale of frequent flyer points, 25% for baggage fees, the rest from such services as early boarding and extra-leg-room seating fees. Here, courtesy of Yahoo Finance is a full accounting.
2. I’m sure you’ve heard by now that TSA is also raising its fees. The current fee is $2.50 for non stop and $5 for a connecting flight. The new rate is $5.60 per flight with any connecting longer than four hours counting as a separate flight. That may not sound like much but it adds up, especially when you miss your connection due to delays leaving ACV and end up with a ten-hour layover at O’Hare. Here is an account from USA Today.
3. The impact of the war in Ukraine and its spinoffs will be enormous and it is probably too early to assess. The route changes resulting from the war are coming at a time when fuel prices are at an all-time high. When the carriers are squeezed, guess who they’ll pass the increase onto? The Hindu Business Line newsletter carried an analysis but the link is no longer available. Time moves quickly in the Middle East.
LOCAL UPDATE: The Airport Advisory committee did not have its meeting as scheduled yesterday for lack of a quorum but Emily Jacobs reported that there was “some” interest in serving ACV demonstrated by other carriers at the confab in Edmonton. Someone reported that Santa Rosa is improving its runways in anticipation of DIRECT FLIGHTS TO HAWAII. Wouldn’t that be great? Yes, it would.
The hardworking crew at HSU has published its Index , which shows a sharp drop in housing sales, down 12.4% since last month. Most indicators were down or flat although Retail held steady. Unemployment rates: National 6.3 (May figures), California 7.6, Humboldt unchanged at 7.1. Many thanks to Dr. Eschker and his researchers.
Umpqua Bank’s consolidation plans do NOT include any Humboldt County banks, a spokesperson for the Bank confirmed. As we reported recently, several other California branches of Umpqua are looking at closure, so this is a vote of confidence in the Humboldt economy. At least I’d like to see it that way.
Ms. Laura Beshire also corrected my error in naming Utah as a state in which Umpqua does business- should have said Idaho. Much thanks to her.
Now everybody clean up your Fourth of July debris and get back to work. Wish we had more holidays during the good weather.