Maryland Business

So much for my “procrastinators rewarded” comments from Tuesday’s blog post.

After the U.S. Senate unanimously passed a bill Monday that would delay the digital television transition by nearly four months, House Republicans said, “not so fast” — or “slow,” as the situation here plays out.

The transition is scheduled for Feb. 17; Senate and House bills proposed moving back the date to June 12. The 258-168 House vote Wednesday failed to clear the two-thirds majority needed to pass, with 155 Republicans voting against.

The Associated Press says the defeat is a setback for President Barack Obama’s administration and Democrats on Capitol Hill who fear too many Americans are not ready for the switchover.

According to the Nielsen Co., more than 6.5 million U.S. households rely on analog television sets to pick up over-the-air broadcast signals. Those that don’t get a converter box for the switch will not be able to receive a signal after Feb. 17.

Approximately 19 million government-issued coupons have been redeemed — a redemption rate of about 50 percent, according to reports this week.

After the House vote, the AP quoted Rep. Joe Barton, R-Texas, as saying the proposed delay was “a solution looking for problem that exists mostly in the mind of the Obama administration.”

Do you think he’s right?

LIZ FARMER, Business Writer

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Last year, like thousands of Americans, I downloaded the freeware version of TurboTax to help me file my returns.

This morning, a Senate Committee gave the green light for the confirmation of TurboTax user Timothy Geithner, former IMF employee and head of the New York Federal Reserve Bank, as Treasury Secretary of the United States of America.

Geithner has been the subject of intense scrutiny and a very many hard questions because he failed to pay about $34,000 in federal income taxes while he was at the IMF, which, because it’s an international organization, requires some of its charges to pay their own income taxes, rather than taking them directly out of their paychecks. In one of the hearings, Geithner admitted that he made the mistakes on his returns despite using TurboTax’s assistance.

Literally 10 minutes after reading about Geithner’s committee approval, I got a message in my Gmail inbox urging me to “Get Money Fast!” by using TurboTax again this year. “W-2s are arriving and soon you should have everything you need to finish your taxes,” the message read. Convenient, I thought, because my boss just came by desk yesterday with my W-2. If only it had been so simple for Timmy Geithner.

But more interestingly, this must be a total PR coup for TurboTax — free publicity in hundreds of newspapers and on hundreds of websites and blogs, including this one. The man who will be in charge of the IRS trusts TurboTax to “e-file” his returns! But then again, he screwed up! How could a man who presumably knows more about income tax than anyone in the country screw up his personal accounts, especially while using TurboTax?

Will Geithner’s gaffe do good things or bad things for TurboTax? Are you more or less likely to use it, or another, similar web-based service, to file your returns this year, given that the Secretary of the Treasury used it, but still made mistakes? No one, after all, wants to get audited.

ROBBIE WHELAN, Business Writer

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I went to YouTube.com immediately following President Barack Obama’s inauguration speech, and there were clips of the inaugural addresses of 10 former presidents: Franklin D. Roosevelt, Harry S Truman, Dwight D. Eisenhower, John F. Kennedy, Lyndon B. Johnson, Richard M. Nixon, Ronald W. Reagan, George H. W. Bush, William J. “Bill” Clinton and George W. Bush. (Jimmy Carter’s speech was absent.) They all came from C-SPAN.

So if you want to revel in some high-flown rhetoric, as well as some ideological twaddle, go here and listen to what some great communicators had to say.

PAUL SAMUEL, Associate Editor

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It’s funny how the world of news gathering and documenting works today. The 24-hour news cycle on cable networks has all but extinguished the power of a newspaper’s front page headlines, circulation and home delivery numbers are sinking and advertising revenue has been drastically cut for print outlets.

And yet…once in a blue moon Americans remember what’s truly special about newspapers — they are the souvenirs of each day, the physical documentation of sometimes historic events, and on days like Tuesday and Wednesday, they will be hot commodities as history’s first account of America’s first Black president.

This has happened before. For example, on Sept. 12, 2001, newsstands were raided in the early morning hours for newspapers’ dramatic, front page headlines and photos depicting the terrorist attacks on the Twin Towers and the Pentagon. I remember at 9 o’clock that morning, the only daily newspaper I could find still left on the streets in downtown Washington was USA Today (I’ll let you draw your own conclusions about that tidbit).

The Baltimore Sun is preparing for similar demand this week as it is upping its delivery numbers to distributors on Wednesday and anticipating a high number of reprint orders for its front page headline depicting the event. Representatives from grocers Safeway and Giant say they are stocking up on newspapers in anticipation of the high demand these next two days.

While the broadcast outlets offer their own memento for the day, you can’t beat the price of a daily newspaper, and there’s something to be said for holding a souvenir in your hands or having it framed on your wall versus popping it into a DVD player for review.

But on Thursday, most of us will wash the ink off our hands and go back to reading the news online or tuning in to the television or radio after work to catch up on the day’s events. Much like the boon to the retail industry that Obama gear is providing, it’s a nice blip on the radar screen but it won’t change the course of the flight.

LIZ FARMER, Business Writer

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For travelers who are having difficulty finding lodging close to President-elect Barack Obama’s inauguration in Washington on Tuesday, Baltimore’s Harbor Magic Hotels says “Bring ’em on.” The company’s three hotels, Pier 5 Hotel at the Inner Harbor, Brookshire Suites in the heart of downtown, and the Admiral Fell Inn in Fells Point, all have rooms available, according to a news release.

Rooms at the Admiral Fell and Brookshire Suites start at $149 per night, and Pier 5 Hotel’s rates start at $199 per night. The company noted that all three are located within short distances of the War Memorial Plaza, adjacent to City Hall, where Obama will speak on Saturday during a stop in Baltimore.

As far as getting to Washington (a mere 35 miles from Baltimore) for the inauguration, the Maryland Department of Transportation says not to worry — travelers can get there without having to drive (many D.C. streets will be blocked) or taking the MARC commuter trains (they’re sold out). Here’s how: Take the light rail to Baltimore-Washington International Thurgood Marshall Airport; connect with the B30 Express bus line (catch it at the lower level of the International Terminal and lower level of Concourse A/B) to the Metro station in Greenbelt; then take the Metro to the downtown D.C. area.

B30 buses will run daily every 15-20 minutes from 7 a.m. to 10 p.m. starting Friday through Wednesday, Jan. 21. The bus trip normally takes 30-40 minutes, but will likely take longer on days surrounding the inauguration, due to expected heavy traffic.
Just leave early and plan on lots of crowds.

PAUL SAMUEL, Associate Editor

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There are Barack Obama commemorative plates, stamps and coins to celebrate the election of the first black president of the United States. Now Rockville-based Silver Diner Inc. has come up with an interesting idea: a Red, White & Blueplate menu in honor of President-elect Obama’s inauguration.

According to a release, the special offerings are available for only a limited time and feature a range of patriotic-themed selections. Among these are: the Barack & Biden Bacon Cheeseburger; the Potomac Pot Roast Platter; the Camp David Turkey Club Sandwich and the Memorial Meatloaf. Breakfast items include Patriotic Pancakes and the Homeland Hearty Breakfast.

Last fall, Silver Diner introduced the Obamalette and the McCainlette as part of its Blueplate ’08 Campaign. The Obamalette outsold the McCainlette by a margin of two to one, the company reported.

Silver Diner operates 16 restaurants in Maryland, Virginia and New Jersey, and all of them will be open from “very early to very late” around and on Inauguration Day, Jan. 20, to serve the crowds expected to descend on the D.C. area for the historic event.

PAUL SAMUEL, Associate Editor

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Everyone’s got advice for President-elect Barack Obama. Msnbc.com, realizing this, used his election as an opportunity to informally survey the country’s mayors on what they would recommend to the incoming president.

MSNBC sent the survey to more than 1,000 mayors, and heard back from 205 in 48 states and Puerto Rico.

The bottom line — not surprisingly — is that “Main Street America” is hurting. Though it’s interesting how different regions of the country convey this concern, with many relating the economic struggles to problems specific to their area.

I was surprised that Salisbury was the only Maryland city to respond, and even more surprised at the final bit of Mayor Barrie P. Tilghman’s answer:

1. Infrastructure: Solution to the challenge facing America’s local governments to replace failing infrastructure. We bail out the financial industry, but the trillions of dollars of necessary infrastructure upgrade and replacement is pressing to the quality of life for all Americans.

2. The Economy: We have seen a dramatic decrease in construction and accompanying applications for building permits, especially in residential development. There is a major high-end condo development on our river that has been completely abandoned and will be auctioned this month. It was in mid construction when the bank pulled the financing. We have also seen an increase in homelessness, foreclosures and criminal activity related to the economy. That is, people are shoplifting essentials such as diapers and food, not electronics.

A sad commentary on the state of things. Take a look at the interactive national map to see what other areas of the country think we need right now.

We’re also interested in what you think. If you were mayor of your town/city, how would you have answered the survey?

JOE BACCHUS, Web Specialist

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This morning, local NPR affiliate WYPR hosted Kai Ryssdal, the host of American Public Media’s afternoon business show, Marketplace, who gave a talk at the newly-opened Baltimore Hilton about the turbulent economy, President-elect Barack Obama’s potential cabinet picks and the importance of balance and objectivity in the media.

Funny enough, though, Ryssdal seemed to support a definitively biased view (though a measured one) of economic policy — specifically, he sounded like a left-of-center free market advocate.

On balance, Ryssdal named his own show as a shining example, and got an ovation from the audience for pointing out that Marketplace employs liberal economist Robert Reich and conservative David Frum to each do semi-weekly commentary. But Ryssdal voiced support for several hotly-contested political causes. He opposes a windfall profits tax on big oil. He repeatedly derided the first draft of Henry Paulson’s recent congressional bank bailout plan as a “2½-page justification for $700 billion in spending.” He supports Obama’s plan to up spending on infrastructure and alternative energy.

“There’s a case to be made that now is the time to spend more money,” he said, describing what he predicts as Obama’s first major step towards fixing the economy: a stimulus package that includes tax breaks and heavy federal investment in alternative energy and infrastructure. “My job is not to not have an opinion,” he added. “My job is not to let you know what that opinion is.” An admirable sentiment, to be sure, but in the context of a nationally-syndicated radio show, what’s the difference?

One of the more interesting points Ryssdal made had to do with the price of oil. Cheap oil, he argued, is good for the American consumer and for an auto industry eager to sell off a quickly-stagnating inventory of gas-guzzlers, but bad for the economy in the long term, because it takes away the incentive for people to invest in public infrastructure. If oil and natural gas are cheap, and we can afford to heat our houses inefficiently and drive to work, why put money into green energy or mass transit?

As for Treasury Secretary picks, Rhyssdal said he favors New York Federal Reserve Bank chairman Timothy Geithner over former treasury secretary Lawrence Summers, because he said Summers has “too much baggage,” is “obstreperous and not incredibly well liked by his peers,” and would have trouble dealing with the diplomatic, political facets of fixing what has now become a global economic problem.

When asked about who Obama will pick, Ryssdal smiled charmingly, then deadpanned, “You know, it’s funny, he hasn’t called yet!”

And finally, Ryssdal answered a question from the audience that I’m sure many out in Radioland are eager to know — what does he read or listen to in order to stay up to date on business news? His answer: multiple newspapers, including the Wall Street Journal and the New York Times (in particular, columnists David Brooks and Maureen Dowd), as well as financial blogs Dealbook and Dealbreaker.

“There’s an obligation on all of our parts, as media consumers in a representative democracy, to be well-informed,” he said. “You can’t just read the Wall Street Journal and watch Fox News, and by the same token you can’t just read the New York Times and listen to Air America. You’ve got to be an omnivore if you really want to know what’s going on.”

ROBBIE WHELAN, Business Writer

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