The weekly newsletter for everyone interested in barter--the world's most versatile business tool!
March 5, 2002
Detwiler Says Barter Business Is Booming!
Fred Detwiler, President of Detroit's Trade Exchange of America, declares that business has never been better. The 5,000 member trade exchange reports a 25% increase in income and trade volume over the past twelve months. "Innovative business minds turn to barter," Detwiler exclaimed, "when businesses are conserving their cash resources during a faltering economy."
Exchange of America operates multiple regional offices in Michigan,
Ohio and Florida. Detwiler is a founding member of the International
Reciprocal Trade Association. For more information go to www.tradefirst.com.
Door Opened For Further Mergers Of Broadcast Media
We can look for further consolidation efforts among the media as rules against regulation were struck down by a federal appeals court last month. This means that ownership by big media companies, of cable systems and local broadcasters in the same market, can now take place.
In short, the new ruling will make it easier for the networks to continue buying as many of these highly profitable local broadcast stations (their affiliates) as possible.
Consolidation within the media industry is still behind that of such industries as pharmaceuticals and aerospace. There's now 100 media companies worldwide with more than $1 billion a year in revenue. It's expected that consolidation will create media platforms with the leverage and scale to introduce services widely and economically.
the barter industry this consolidation is a two-edged sword. Ownership
of more inventory (stations) does consolidate management, making a relationship
that much more valuable. However, it can also reduce possible sales
opportunities, if one is unable to work with the management. Furthermore,
consolidation can lessen competition in certain markets, which makes
for a tougher sell.
FASB Changing Synthetic Lease Rule
The Financial Accounting Standards Board sets the "generally accepted accounting principles" used by U.S. corporations. And they're talking action on a financing vehicle--synthetic leases--that has been used to hide real estate loans, and is considered to be a contributor to Enron's collapse.
In short, such a lease provided the tax benefits of real estate ownership while keeping the debt off the company's books. This obscures the extent of a firm's liabilities and exposes it to interest-rate risks.
synthetic leases are used by more than 2,000 companies in the US, which
means they will have to add more than $100 billion in debts to their
books (cumulatively) after the new regulations are passed.
Here And There. . .
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