Category Archives: business news

business news, local news

Abandoned building gets another new owner

Is this it? Is this the corner that an abandoned, dilapidated, rotting hulk of a downtown Amarillo office building needs to return to life?

A Dallas developer, Tom Pauken, has just foreclosed on the long-abandoned Barfield Building, wrestling it away from its owner who’s said for longer than anyone can remember that, by golly, he’s going to find someone to develop the structure.

Todd Harmon hasn’t delivered the goods. From where I sit, it doesn’t appear that he ever will.

Enter the group headed by Pauken, a lawyer, real estate developer who’s worked with property in Amarillo, former Texas Republican Party chairman — and a longtime friend of yours truly. (I thought I’d throw that last thing in for grins and giggles.)

Pauken leads a group called Henderson Willis Ltd., which has foreclosed on mortgage notes totaling about $550,000 on the building at the corner of Sixth Avenue and Polk Street.

It’s a complicated procedure, but as of today Pauken’s limited partnership has control of the Barfield Building. The former controlling owner, Harmon, so far hasn’t responded to media requests for comment.

Pauken’s foreclosure comes as well after another Amarillo business group sought to develop the Barfield Building, only to have Harmon get it back in some more complicated maneuvering.

What is Pauken’s aim here? He wants to find someone to invest in breathing life back into the Barfield Building. Harmon had gutted the ground floor and a few floors above. Then the work stopped. The ground floor was boarded up and the crews walked away; that was a decade ago.

It has sat vacant, rotting ever since.

Pauken said he believes the Barfield “is a natural” for some sort of redevelopment. Harmon had sought to turn the 88-year-old building into a combination of apartments, retail shops, a restaurant, day spa, bank branch, coffee house — and Lord knows what else.

Enter the Pauken group, headed by someone who’s already had some success redeveloping property in downtown Amarillo.

Can this group do what no one else has been able to do? I am cautiously optimistic my pal Tom can get ‘er done.

 

 

business news, legal news

Such wealth is mind-boggling

The late golfing great Bobby Jones once said of a young golfer who would become the greatest in his sport’s history that Jack Nicklaus “plays a game with which I am not familiar.”

Accordingly, an Oklahoma divorce settlement dispute is dealing with money with which I — nor most normal Americans — are unfamiliar.

I cannot get over what the former wife of an Oklahoma business tycoon is asking.

Harold Hamm offered to write his former wife, Sue Ann Arnall, a check worth $975 million to settle everything. It would be over. The two of them would part company and never have a word to say each other … ever again!

She refused the money.

Why? The bottom line is that it’s not enough.

http://www.msn.com/en-us/news/us/harold-hamm-offers-dollar975-million-divorce-check-ex-wife-rejects-it/ar-BBhBvJS

Wow! And double, maybe triple, wow!

Arnall is appealing the initial divorce settlement of $1 billion. Her ex-husband has been accruing interest and penalty charges of $93,000 per bleeping day.

The guy wants out. His wife is arguing that she deserves more than the amount ordered by the court.

Now she’s refusing a one-time payment of nearly a billion bucks.

What in the name of the deepest of pockets am I missing here?

https://highplainsblogger.com/2014/11/15/1-billion-settlement-just-isnt-fair/

Someone help me out. Please.

 

business news, International news

Sanctions seek to punish North Korea

It turns out President Obama is going to be up front and visible as he responds to North Korea’s alleged cyber attack on a major American company.

He took time from his vacation in Hawaii to sign an executive order slapping economic sanctions on North Korea.

http://abcnews.go.com/Politics/obama-sanctions-north-korea-sony-cyberattack/story?id=27965524

I’m still thinking the president had a hand in North Korea’s Internet crash shortly after dictator Kim Jong-Un bullied Sony Pictures into holding back release of “The Interview,” a fictional story about a plot to assassinate the North Korean dictator. The bullying included the alleged hacking into Sony’s emails and other communications.

Obama threatened a “proportional” response.

Now we have the sanctions. They’re sweeping and designed to bring serious economic pain to a government known for bringing plenty of pain of its own to its people.

According to ABC News: “The order authorizes the Treasury Department to shutdown access to the U.S. financial system, prohibiting transactions and freezing assets, for specific officials  and entities of the DPRK (Democratic People’s Republic of Korea) and anyone who supports them.”

Further, according to ABC: “‘The order is not targeted at the people of North Korea, but rather is aimed at the Government of North Korea and its activities that threaten the United States and others,’ Obama wrote in a letter to House Speaker John Boehner and Senate Majority Leader Mitch McConnell notifying them of the action.”

Will the sanctions work? Well, Kim Jong-Un ought to ask Soviet strongman/president Vladimir Putin about the effectiveness of these sanctions.

Yes, they’ll work.

 

business news, national news, political news

How about sharing the credit?

1 Comment

Grover Norquist just cracks me up.

The anti-tax Republican activist wants the GOP to seize the credit for the nation’s economic recovery from those pesky Democrats, led by President Barack Obama.

It’s Republican policies, not Democratic policies, that have ignited the nation’s recovery from near-disaster, Norquist told The Huffington Post.

http://www.huffingtonpost.com/2014/12/30/grover-norquist-economy_n_6396682.html?ncid=fcbklnkushpmg00000013

Hey, here’s an idea, Mr. Tax Cutter: How about sharing it?

In a way, Norquist does make a salient point — more or less — about Republicans’ insistence that the economy still stinks. He says they should shut their trap about that and take credit for the good news we’re hearing.

According to The Huffington Post: “‘There were outside voices advising Republicans on what to do. They missed both calls,’ Norquist said in an interview with The Huffington Post. ‘I object as much as some of the guys on the right who are never satisfied in the moment. I’m never satisfied over time. But they go, ‘This was a disaster.’ No it wasn’t. We played our hand as well as you could and better than we had any reason to expect we would be able to.'”

If my own memory remains intact, I do believe the president gave in to Republican demands to keep the tax cuts enacted during the Bush administration. He could have dug in his heels and demanded repeal of the “Bush tax cuts” for business and big income earners, but he didn’t.

As some have noted as well, the oil boom has driven the nation’s economic revival. Nothing else. It’s just oil, they say. Presidential policies have nothing to do with that.

If that’s the case, then do Republican congressional policies play a role here? I’m thinking, well, maybe not.

Whatever the case, the nation’s economic health is far better than it was when Barack Obama took the presidential oath in January 2009. He pushed through a bold stimulus package with the help of a Democratic-controlled Congress. The auto industry bounced back, thanks to that stimulus — and then repaid the federal Treasury in full.

The labor market has been restored to where it was prior to the crash of late 2008.

Who deserves credit? I’ve been glad to give the president some of the credit. I’ll give credit as well to that other co-equal branch of government, Congress.

The only problem with Norquist’s call for less belly-aching and more bragging is that the GOP will have to concede that its Democratic “friends” had a hand in it as well.

Didn’t they?

 

business news

Economy has kicked into high(er) gear

What’s this? The nation’s Gross Domestic Product grew by 5 percent annually?

That’s the greatest increase in the GDP in 11 years. The economy not only has pulled itself back from the abyss, it has kicked itself into high gear.

http://www.msn.com/en-us/money/markets/dow-crosses-18000-for-first-time-on-gdp-surge/ar-BBh9Hg9

What were investors’ reaction? The Dow Jones Industrial Average today closed at more than 18,000 points for the first time in history. The S&P set another record. Investors are happy. My own retirement account is making me happy again.

Here, though, is where I get confused.

I keep reading doomsayers lament the “wrong direction” the country allegedly is headed. Wrong direction.

The price of gasoline is down. Supply of fossil fuel is up. The United States is now the world’s No. 1 producer of petroleum. That’s one segment of the economy that’s looking up, and is getting the credit for the revised increase in the GDP.

You want more? The budget deficit has been cut by more than half. Remember the yammering of those who wondered whether the economic stimulus would bankrupt the Treasury? It didn’t happen. I consider myself a deficit hawk, so I view the reduction in the deficit as a positive sign that government spending is not hurtling out of control, as some have suggested.

Here’s another kick in the teeth to the naysayers. The most recent jobs report posted more than 300,000 added to the labor force. Even better is that wages are up. It was that pesky wage figure that kept fanning the flames of those who just couldn’t believe the economy had actually turned the corner.

The gloom-and-doom squad is continuing to outshout the other side.

I do not intend to let them get away with it so easily.

 

 

 

business news, local news

Gas-price skid causes nervousness

So-called “experts” on energy prices and policies keep telling us the same thing.

The downward spiral in oil and gasoline prices is going to continue perhaps well into the new year.

But watching the price ticking down — often more than once daily — continues to make me nervous.

The price of unleaded gas has now dipped to less than $2 per gallon in Amarillo. I work part time across the street from a leading gas dealer here and I’ve seen the sign tick down as many as three times during a single day.

How low will it go?

The experts aren’t saying yet how cheap they think gas will get.

Supply is up. Demand is down. American drillers keep producing oil like there’s no tomorrow. But everyone knows how free-market economics works: If the supply keeps outstripping demand, eventually the suppliers will scale back their production to even out the inventory of oil and gasoline on the market. The result inevitably increases the price of gas a the pump.

As we’ve all seen for the past several years, gasoline increases in price at a far quicker pace than it decreases.

Hey, I’m not predicting gloom and doom at the pump.

I’m merely suggesting that I’m getting quite used to paying the same amount for gas that I was paying five years ago or longer.

The “new normal” in gas prices had produced a certain form of numbness to the prices we were paying. Now that new normal has been shaken — but in a positive sort of way.

It still makes me nervous about what could be coming down the road.

 

business news, national news

Declining oil prices bad for economy?

1 Comment

Economics isn’t my specialty. Indeed, I don’t have any specialties.

I’m trying to understand why some economists now think the declining price of oil and the concurrent drop in gasoline prices is somehow bad for the recovering U.S. economy.

http://www.msn.com/en-us/money/other/is-dollar40-oil-coming/ar-BBgNjHn

Does anyone else remember when crude prices were skyrocketing from, say, $40 per barrel to more than $100? The stock market went bonkers. Investment accounts were drained of billions of dollars.

However, the oil industry made a gigantic comeback. NPR this morning did a story from West Texas detailing how pump jacks that once stood like dinosaurs have jumped back to life and are pulling out of the ground.

A lot of other factors have contributed to the nation’s economic rebound.

Moreover, a lot of factors are contributing to the glut of oil that’s driving its price downward.

Now we hear that the economic recovery might be jeopardized by the plunge in oil prices.

The oil boom might fizzle out at the production end, but what about the increase in disposable income for motorists who aren’t pouring as much money into their fuel tanks?

Will they be able to spend more of that income on other essential — and non-essential — items?

Economics can be a complicated issue. This oil price up-down cycle has me confused.

 

business news

Presidents get the blame, not the credit

1 Comment

It doesn’t matter one little bit which party is in power, presidents of the United States become sitting ducks for snipers looking for someone to blame when times get tough.

Take the price of gasoline.

Flash back to 2012. President Obama was getting pounded, pilloried and plastered by his foes because gas prices were spiking. Republican challengers to Obama were quite quick to lay all the blame on him for being unable to control the price of fossil fuel and, thus, the price of gas at the pump.

Fast forward to today. The price of gas is falling. Crude oil is selling for about $68 per barrel, down about $40 from where it was two years ago. Is the president getting any credit for that? Hardly. Does he deserve credit? Not as much as he thinks he should get.

But neither did he deserve the brickbats that were being tossed his way.

The 44th president isn’t the first one to take hits unfairly. He won’t be the last.

We’re all just so darn fickle that we cannot bring much balance to the give and take, the ebb and flow of good times and bad.

 

business news

'Gas war' takes on new meaning

Do you remember when the term “gas war” referred to competing service stations at intersections dropping their prices to lure customers away from the station across the street?

I read recently something like that happened in Oklahoma City, dropping the price of gasoline to less than $2 per gallon.

Good deal, right?

Well, the term has taken on a more global meaning. The energy price war is causing serious declines in the price of gasoline in the United States. It dropped to $2.15 per gallon today in Amarillo and it’s likely to drop even more. Heck, it might have dropped another penny or two since I got home today a little after noon.

http://www.realclearenergy.org/articles/2014/12/10/the_daily_bulletin_-_december_10_2014_108168.html

OPEC recently refused to cut production. The supply of crude oil remains quite high, while demand is declining. Add to that the surging U.S. energy production, which is about to make the United States the world’s largest producer of petroleum in the world, surpassing Saudi Arabia as No. 1.

We can thank (or blame) the fracking that’s going on in West Texas and in North Dakota and Montana, which are seeing a huge boom in the production of shale oil.

Although I am acutely aware that the decline in oil makes it more difficult for producers to keep pumping it out of the ground, I also am grateful to be paying a dollar or more less for gasoline than I was paying a year ago. It’s freeing up some disposable income in our house.

Someone will have to tell more once again why this oil price decline somehow is bad news.

Well? Anyone?

 

business news

Wealth measurement changes with times

Warren Buffett is now the world’s second-richest man.

The title used to belong to Carlos Slim. Both of these guys trail Bill Gates by a good bit. Several billions of dollars, I think.

http://www.msn.com/en-us/money/savingandinvesting/buffett-unseats-mexicos-slim-as-worlds-second-richest-person/ar-BBgpiKD

I see these surveys measuring people’s wealth. Gates is worth tens of billions. Same with Buffett and Slim — and whoever else comprises the Top 10 list of richest people on the planet.

Inflation has done a lot of things to the way we measure these matters.

It all reminds me of how much the actual dollar has been devalued over the past, oh, 40 years.

Aristotle Onassis died in 1975. He was a shipping tycoon with merchants ships carrying cargo all around the world. At the time of his death, he was considered one of the world’s top two richest men. I seem to recall it was a see-saw contest between him and a rival Greek shipping magnate, a guy named Stavros Niarcos.

What was Onassis’s wealth at the time of his death? The figure I saw was $500 million.

Good heavens. He was a mere multimillionaire. Onassis’s portfolio amounted to mere chump change when compared to Gates, Buffett and Slim.