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LA Biz Observed archive
Mark Lacter covered business, the economy and more here from 2006 until his death on Nov. 13, 2013.
The entire LA Biz Observed archive — more than 10,000 blog posts by Mark —
remains online and available.
March 2012
Despite bellyaching by a few prominent SAG members, it wasn't a contest.
Surprisingly little, despite the purchase by an investment group led by Ron Tutor.
Forbes contributor Ken Kamen has a great piece of advice: Don't do anything right away.
Consumer sentiment improves, gas prices keep inching lower, Apple supplier promises chnages, and a jump in Dodger ticket sales.
Billionaire Phil Anschutz refuses to budge on financial terms with the NFL.
The SF-based sound and video company has a long Hollywood history.
He'll also propose a higher retirement age for city workers.
Here's a cogent - and quite disconcerting - assessment from NY magazine's Jonathan Chait: The debate seems to have centered around a "limiting principle." If you haven't closely followed the arguments, here is what it means. The challengers have managed to wall off the health-care law from overwhelming precedent that would uphold it by defining the individual as something wholly different from other regulations -- a regulation of "inactivity," as opposed to "activity." The distinction...
But is the two or three cent drop in the past week a hint of things to come?
What the Census Bureau describes as "outflows."
Jon Stewart on President Obama's loose-lip moment the other day in Seoul.
Best Buy closes stores, anger over Dodger deal, News Corp. mulls all-sports channel, and LAX traffic is way up.
Big difference between ribbon cutting and dealing with complaints about stadium security or Dodger dogs.
Mark Walter, who controls the purse strings, says he will remain in the background.
Everything from eggs to shampoo to produce will be reduced, another reflection of the struggles that traditional grocery chains are having in a market increasingly dominated by lower-price competitors like Costco and Walmart. (Why do you think the grocery workers union made such an effort to keep Walmart out of Chinatown?) Price reduction takes effect today. From the OC Register: Compared to 2008, the new low-price program represents thousands of more items with "deeper cuts"...
And no - he's not Magic Johnson.
Here's one of the nifty sidebars to the big sale.
Just offer a fantastic amount of money: $2.15 million, in cash.
Expect the state rate to hover around 10.8 percent through the end of the year, according to the latest UCLA forecast (it was 10.9 percent in February). In 2013, it will average 9.8 percent, and in 2014 the unemployment rate will be around 7.7 percent - still a half percent higher than what's projected for the nation as a whole. So why is California still lagging behind? UCLA economist Jerry Nickelsburg says that the employment...
He made a fortune by pushing convenience over quality - and don't knock convenience.
Among the first of what no doubt will be a bunch of videos from passengers on board the NY-Vegas flight.
Skeptical questioning isn't always a predictor of where the vote will go, but often times it is.
It would bring the nation back to square one on reform.
If you're having breakfast you might want to skip over this item.
Small dip in confidence, airlines raising fares, L.A. home prices creep lower, and the most rented movie in 2011.
The two companies are squabbling over retransmission fees.
When attacking the president, nothing is too low.
One of those Rashomon days.
Investors are still jittery because of a drop in new orders.
We're talking 7,000 people per square mile, according to the Census Bureau.
American Apparel's naughty CEO provides an up-close look.
Public still confused about health care law, gas prices edge lower, support for Brown's tax hike plan, and some cable ratings sink.
Here's a news flash: They're not soaring anymore.
Reed introduced a paywall in early 2010, which no doubt resulted in losing readers
Retailer got all the needed approvals in advance of council vote.
First four seasons get the once over.
Who knows where the this horrible story will lead, but there's no denying its resonance.
The long-awaited 7.6-mile connection will be up and running on April 28.
February's 11.8 percent rate is still very high - nearly a full percentage higher than California's jobless rate of 10.9 percent (also unchanged from January). The U.S. unemployment rate in February was 8.3 percent. Somewhat better news: the separate payroll survey shows that L.A. gained 28,900 jobs in February; in all of California, the increase was 4,000. Here's the EDD release....
He happens to be the biggest shareholder of Lions Gate Entertainment.
Investor confidence is up, B of A tests foreclosure alternative, council to consider Chinatown Walmart, and how L.A. could save $350 million.
There's not much to understand: Local unions don't like it and some councilmembers are taking note.
Financing remains the top problem faced by many business owners.
This tells you a lot about income divisions in Los Angeles.
They include Pat Lynch, the former general manager.
Harold Simmons believes the president is "the most dangerous American alive."
Governor's proposal to raise taxes would not go to K-12 school and community colleges.
Jobless claims hit 4-year low, mortgage rates top 4 percent, huge advance sales for "Hunger Games," and efforts to block Walmart in Chinatown.
Lettuce, cabbage, and tomatoes are practically steals.
The issue is inaccurate pricing at checkout stands.
It's part of a national expansion of the high-end burger chain, which is half-owned by nightclub/hotel impresario Sam Nazarian. The plan is to reach more than 20 locations by the end of the year. From Bloomberg: Nazarian sees his premium restaurants and burgers as apart from the pack. Umami serves up hand-chopped ahi tuna with wasabi flake, and offers wine and martinis in some locations. These are the latest evolutionary twist on the Southern Californian...
Crews are on site at the Grand Avenue location.
Another step in the evolution of the gaming business.
Recession pushed many people into business ownership.
Drilling doesn't mean lower prices, iPad is too fast for your own good, pushing more exports from L.A., and TV connected to the Internet.
Why do Costco and Trader Joe's have plenty of employees and still make money?
Students in California tend to drop out a lot more frequently than in other parts of the country - and that means lower skill sets, which almost guarantees that these kids won't find a decent job. All of which puts pressure on business owners to find qualified people. And unless voters approve a ballot initiative to raise taxes, educators could be faced with still more budget cuts. Available at kpcc.org and podcast (Business Update with...
If this were a business, they would have somebody's head.
How the career of a high-ranking Morgan Stanley executive came tumbling down.
Oil prices dropping, small pickup in L.A.'s Latino population, Cal State plans enrollment freeze, and fading interest in law school.
"This American Life's" retraction program hits upon a larger question.
It's actually a complicated problem.
Meanwhile, Disney is tallying the losses for its megaflop, "John Carter."
Why do you think? They're not men.
Not a pretty picture if you drop it face down.
Alaska Airlines will operate out of Terminal 6 instead of Terminal 3.
Apple to pay dividend, gas prices nudge lower, L.A. billionaire to enter Dodgers fray, and non-legacy carriers get high marks.
Just never went anywhere ratings-wise.
Because Goldman clients don't really care.
Rich homeowners are choosing to build massive basements.
The old Borders store on Sunset and Vine is being replaced by a Walgreens superstore, and I can't help feeling something is amiss.
The endless debate about the use of facts, exaggerations or outright lies in pursuit of the greater truth.
Pretty embarrassing moment for the acclaimed radio magazine.
Kyle Hunter says he was passed over for jobs because he wasn't a hot chick
Gas prices start to fall, consumer mood dips, warning on American Airlines bankruptcy, and Wozniak waits in line for an iPad.
They're talking about the middle of next month, at the earliest.
Merely orbiting around the Earth might not attract much interest.
Apple stores in 10 countries, including the U.S., will be opening at 8 a.m. on Friday to accommodate the crowds. Several major retails, such as Best Buy, RadioShack, and Wal-Mart will be selling the tablet as well. From the WSJ: The Cupertino, Calif., company said in recent days it had sold out of its allotment of iPad preorders, saying that interest among its customers was "off the charts." The company has since said new preorders...
Talk about the end of an era:
The real business media was ignoring this guy.
The WSJ's tech columnist really likes the latest version, especially the display.
More good news on jobs, Freedom may be up for sale, Korean Air's downtown development could be pared, and Brown's revised tax plan.
Inbound traffic was down in L.A. and Long Beach.
This isn't the way to restore fiscal sanity in Sacramento.
NYT columnist David Brooks has a good take.
Has the entertainment industry lost as many jobs as reported by the state?
Simply put, not many of them are making it.
The price for unblended gasoline has been falling sharply.
This is a big deal in the mayor's effort to mass transit projects completed in 10 years instead of 30.
The Socal housing market had its best February in five years.
No real way of verifying much of the information, but it's still pretty cool.
Stinging exit from Goldman, gas prices level off, Brown to rewrite tax initiative, and California construction employment is up.
The latest round of so-called stress tests worked out well for 15 of 19 banks.
You still hear concern about a pullback, but for now there's just a lot of encouraging news. Today's rally was buttressed by good economic numbers (retail sales), a generally positive Fed statement, JP Morgan announcing a big boost in its dividend, and several large banks disclosing that they had passed the Federal Reserve's so-called stress tests (the Fed is about to report the results of those tests). Add to all that is Friday's strong employment...
A lot more than what we pay at the pump.
In theory, the government is liable for less money, but only if the 7.5 percent return is met.
Once again, Nevada is tops, at 12.7 percent.
Sales in the state totaled a record $5.3 billion last year, up almost 200 percent from 2010.
Author David Rothkopf will be looking at big government vs. big business during the next Live Talks Business Forum this Thursday morning at the downtown City Club. Rothkopf, author of "Superclass: The Global Power Elite and the World They Are Making," will be in conversation with LAT columnist David Lazarus. Breakfast is at 7:45 and the program begins at 8:15. Click here for tickets....
As could be expected, there's been a backlash against the initial snarky comments.
Pickup in retail sales, banks ignored foreclosure errors, LAFD provided inaccurate data, and Casden appears out of Dodger bidding.
Why is there barely a drop in the way people view the economy?
The mayor says commercial property owners are benefiting at the expense of homeowners.
The Kiss rocker will be backing something called Rock & Brews in El Segundo.
NYT columnist Mark Bittman says it's not half bad.
February tax receipts came in 3.2 percent below the governor's budget projections.
Here's a case where reality is all but irrelevant in the context of an election year.
More details on mortgage deal, gas prices keep inching higher, Hollywood in a funk, and pot legalization efforts face hurdles.
A different way of doing business is taking shape.
The L.A. developer has been trying for years to overhaul the old Miramar Beach Resort.
First time in nearly three years state unemployment rate was under 11 percent.
L.A. company says it's a different type of research.
Broad job gains, mortgage deal provides added dividend, Americans resume borrowing, and Taylor Swift is tops.
It's not just the 227,000 payroll jobs that were added in February - it's the upward revisions from earlier months that economists are spotting. The January jobs figure was increased by 41,000 and the December figure by 20,000. Overall, the economy has added an average 245,000 jobs over the past three months - that's significant. (NYT)...
A Vancouver developer is finalizing plans to build a 32-story apartment tower at Ninth and Olive streets.
That might seem surprising given the area's enormous levels of wealth.
That's based on industry growth rates between 2007 and 2011.
Rule #1: No one knows what the numbers will look like.
Well, not completely, but Nevada gaming revenues are on the upswing.
The world is filled with lots of extremely rich people.
Jobless claims increase, shaky support for tax measure, California tops in suspicious mortgage loans, and Hollywood union talks begin.
Turns out that Alec Baldwin isn't the only jerk who refuses to turn off his phone or tablet. Numbers are sketchy, but flight attendants say that electronic devices have become the leading cause of unruly behavior by passengers. They just don't believe the machines can cause any problems, and, truth be told, there's only limited research on the subject, none of it conclusive. From the WSJ's Scott McCartney: Travelers who "think 'it's no big deal'...
California has the largest number of residents with a net worth of $2 million or more.
The Dow picks up some of its losses from Tuesday, gaining 78 points.
You'll be astounded.
A faster machine and sharper graphics are the selling points.
L.A. will have a hard time giving out raises because its deficit is so large.
NY crude is trading at about $105 a barrel, which is well below the $144 level in 2008.
Pickup in private employment, gas prices stop climbing, Apple announces new iPad, and new budget woes for L.A.
The measures include 300 job cuts and the closing of 50 courtrooms.
A former Sherman Oaks investment manager named Bruce Friedman tried France. The feds had been after him in connection with a Ponzi scheme that allegedly bilked investors of more than $200 million. Last year French police arrested Friedman in front of his hotel in Cannes, and in the months since he had been awaiting extradition to the U.S. Then, Friedman died. No word on how or when, according to the LAT. Frankly, the idea of...
It all came apart today in what was by far the worst trading session of the year. The Dow, which was down sharply all day, finished down 203 points, to 12,759. Analysts will point to more rumblings out of Greece, but the market had been long overdue for a pullback as traders look to cash in on what has been a surprisingly bullish year so far....
Why won't the L.A.-based marketeer of supplement disclose R&D information?
Yes, it does make a difference.
He has a strong chance of winning Ohio, North Dakota, and Alaska, and is a virtual lock in Virginia, Massachusetts, Vermont, and Idaho.
Metaphorically, that is.
Gas prices stabilizing, concerns about college loans, scamster Bruce Friedman dies, and record year of lobbying.
Keep in mind that they were up 23 cents the previous week.
Thousands of students rallied outside the state Capitol this morning.
Don't get too excited by the seven or eight sponsors that have pulled out - it's still a long list.
Too many retirees wanting to sell their investment portfolios will deflate prices.
This explains why retail's luxury sector turned around so fast after the downturn.
Seven new destinations out of LAX, including Shanghai, Hilo, and Austin.
Yahoo preps big restructuring, newspapers struggle on print side, big weekend for "The Lorax," and labor abuses alleged in Inland Empire.
Electric car sales aren't going to pick up until batteries can be made more cheaply.
Not very, but when airlines combine computer systems, nasty stuff can happen.
Those online job sites might not be the best way to break through.
Board of Equalization is out with a list of the 500 biggest offenders. All told, they owe the state $555.7 million. Tops on the list is Downey-based California Target Enterprises, a gas station company delinquent to the tune of $18.3 million. You'll also notice former Kings owner Bruce McNall, who owes $7.7 million. Beginning in July state licenses or permits cannot be issued to anyone on the list. (Date indicates the first lien notice.) CALIF....
Baby boomers are entering their retirement years without anywhere close to adequate savings.
From this week's TED conference in Long Beach - and way cool.
Investors still hesitant about stocks, credit unions picking up business, gas price surge appears to be easing, and turmoil at MOCA.
This is to refinance existing debt and should save the state around $250 million in debt-service payments.
Way higher than expected, especially with the rising price of gas. February sales jumped to an annual rate of 15.1 million, the highest level in four years (during the height of the recession the annual rate was 9.1 million). As for the individual automakers, Chrysler was up 40 percent from a year earlier, Ford 14 percent, GM just 1 percent (2011 was unusually strong because of a discount program). All these sales should help the...
Sorry, you won't find much grieving around these parts.
Quite a bit of activity at the higher end.
Still-high jobless rate understates the depths of the local employment problem.
The city is technically in default, but it cannot file for bankruptcy - not yet.
Another reminder of how tentative these numbers can be.
Good month for car sales, retail sales picking up, B of A considers new fees, and a new Costco for Westfield Topanga.
Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.The multi-talented Mark Lacter
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