The P90X workout, which is extremely tough but creates results, can be seen as the metaphor for the future of financial fitness.

The workout program, created by Tony Horton, has sold more than two million sets of its DVD series, at $119.85 per set. The selling point is that the workout is really, really hard. Some of the comments from those who do the program include: “When I first started the leg workouts, it made me want to puke in the middle”; “It’s awful. It doesn’t matter how many times you do it, it still makes you cry.” (Miami Herald, 5/18/10)

When will individuals and government leaders determine that in order to correct financial excesses (debt and spending), a painful but effective discipline is necessary? And who will be the Tony Horton of the program? One workout attendee, whose shirt was sopping-wet after the strenuous ordeal, proclaimed; “Tony is the man. Tony is the man”. Who will be “the man” (or woman) of financial fitness?

Charles Hess

North Dakota has the lowest unemployment rate in the country and one of the largest budget surpluses. In this economic and political environment, could this state-run bank model spread? Will this unique creation be seen as too “socialist” for the mainstream? What would be the impact on national, regional and community banks?

Eric Zavolinsky

Researchers at UCSD and the University of Washington discovered that certain late-model cars with wireless connectivity can be hacked.  The researchers were able to remotely disable the brakes, stop the engine or make other adjustments to cars’ operations.  (New York Times, 5/13/10)

Nissan, believing that there will be great value in marketing cars based on the information they can remotely deliver to drivers, is building a “secret” data center from which it will connect to all of its future cars. Is there a potential for such a network to be maliciously attacked? There may be franchise risk not only in the increase of computerized car components but also in their Internet connectivity.

Michael Hines

Tom Ringo, the head of IBM Human Capital Management (the consultancy arm of the company), said the firm’s global workforce of 390,000 permanent employees could be reduced to 100,000 by 2017, the date by which IBM is due to complete its HR transformation program. Ringo said the firm would employ “crowd- sourcing” and re-hire workers as contractors for specific projects when necessary, adding, “There would be no building costs, no pensions, and no healthcare costs, making huge savings.” An IBM spokesman later said Ringo’s comments were without merit. (Personnel Today, 4/23/10)

Whether IBM actually makes the transition to a mostly crowd-sourced workforce or not, the fact that it has discussed the possibility is significant. The expectation has been that hiring would increase not long after economic growth, but has this recession taught companies new lessons about the merits of lean staffing and the possibilities of technology? Might we see a significant segment of the U.S. labor force become permanent freelancers, doing work on demand?

Eric Zavolinsky

The instances are unrelated, but three allegations in one week suggest that both national and international authorities are cracking down on what they believe to be illegal corporate activity and fraud. Why now, and who’s next?

Eric Zavolinsky

Grameen America focuses only on borrowers who are below the poverty line, and commercial banks that provide funds to the microlender are granted credits under the Community Reinvestment Act. How curious that a Third World financial institution is finding an attractive market in the U.S.

Ken Hey

Because of budget constraints, state and local governments are cutting back on road construction. As an example, Colorado Springs, the second-largest city in Colorado, has announced that it will not pay for any street paving, relying instead on a regional authority, which has said it can meet only about 10 percent of the need. In a similar vein, communities in various states (e.g., Maine, Michigan, Indiana, Pennsylvania, Vermont, etc.) have announced plans to convert paved roads back to gravel in order to save on maintenance costs. In hard hit Michigan, 38 counties converted 100 miles of roads since last year because of insufficient funds. If there is not another federal stimulus bill that contributes to state and local highway funds, tire, shock and suspension companies should do quite well, as potholes ravage cars.

Charles Hess

While Indians are known to have a genetic proclivity for diabetes, the incidence of diabetes in China is a wake-up call. If Type 2 is attributed to a high caloric diet and sedentary lifestyle, one has to question the ultimate extent of diabetes in the world. It could be a lot higher than assumed, and with expectations of healthcare coverage rising in emerging economies, the cost of diabetes treatment could skyrocket.

Charles Hess

Oprah Winfrey recently devoted an entire episode of “The Oprah Winfrey Show” to the prevention and treatment of diabetes – and pointed viewers to a nationwide free diabetes-testing campaign underway at Walgreens.  During the first day after the show aired, more than 80,000 people visited Walgreens for testing.  Approximately the same number of people were tested over the entire month of November when the pharmacy ran its previous free diabetes testing event.  That time the pharmacy had NOT partnered with a TV show.  (Drug Store News, 3/1/10)

Considering Oprah’s public entrance into U.S. politics during President Obama’s run for the White House, could the administration harness her marketing power and direct the infamous “Oprah Effect” at the nation’s rising healthcare costs?

Risa Hess

In 2008, the value of counterfeit goods seized at America’s borders increased by nearly 40 percent over the year before. It fell 4 percent last year — far less than the 25 percent decline in imports overall. The number of counterfeit parts in military electronics systems more than doubled between 2005 and 2008. (Economist, 3/6/10)

Service companies that monitor and track counterfeit goods are benefiting from the proliferation of fakes. Meanwhile, the U.S. Government, which is losing out on tax revenue at a time that it needs all the revenues it can get, appointed its first Intellectual Property Czar last year and is developing a new enforcement strategy.

Eric Zavolinsky