Can Someone Explain This Math?

Goldman Sachs bonus pool estimated at $725,000 per employee

This week, business reporters told us that Goldman Sachs 2009 third quarter profits swelled, compared with 2008, to an estimated $3.19 billion. The bonus pool stands at $16.7 billion, and, by the end of the year, it could hit $23 billion, according to reports. However, Goldman reported first quarter profits (net earnings) of $1.81 billion; second quarter, $3.44 billion. Thus end-of-year net earnings should be about $11 billion. How can bonuses be twice as much as profits? …continue reading →

Thinking About “Free”

I had not thought about the long-term viability of advertising until Tuesday night's Net Economics class. I think in my lifetime ads will not disappear, but they will continue to change. Maybe we'll have more sponsored content, like early radio (and PBS), instead of interruptive adverts. And there will be more "free" content like Doctor Horrible's Sing-Along Blog (2009 Emmy, wikipedia). Three tidbits that I'm keeping in my toolbox to help explain what's happening today:…continue reading →