Hacking Gets Cheaper
I was curious how someone can take down a site like Twitter or Facebook. So, not being a techie, I did some research, and according to a recent article in BusinessWeek, taking down a site like Twitter, Facebook, or any other Web site is about as easy as getting a book from Amazon. No password cracking or software coding is necessary—and, it is very affordable.
The concept is to launch a “denial-of-service” attack, by simply renting enough computer power to overwhelm a “target” site by trying to communicate with it through thousands of computers at the same time. Apparently, neither Twitter nor Facebook was the “target” site this time, but instead, they were victims of collateral damage when someone took down a political site.
You may wonder where all these computers are? Well, they could be your computer, and/or mine—plus tens of millions of computers around the world that are currently infected with viruses that can control our computers on command. These networks of computers are called “botnets” and are rented out by scurrilous hackers on a per-day basis.
There are now so many “botnets” operating that there has been a price war, and a person can now rent 10,000 computers for about $200 per day. This is more than enough computer power to take down a Web site with a “denial-of-service” attack.
Oh yeah, and it only takes about an hour to hook-up with a botnet, pay your money, and set up the attack.
So, there you have it. Anyone can do it, and apparently, you don’t have to be a technical whiz.
Motives vary from hacker to hacker, but can include silencing political opponents, covering fraud, revenge by a disgruntled employee who wants to take down his company’s site, or any other motive imaginable—including plain old vandalism.
Tech savvy people probably know all this, but to me, it was an eye-opener. To read the complete article, click here.
Do you know what’s on your computer?
Microfinance
Small business startups in the U.S. are typically funded through owner savings, credit cards, family or friends. Bank loans are out of the question, and most Angel Investors are not interested in funding “concepts.” Of course, rarely does a small startup qualify for venture capital funding.
Small startups that cannot self-fund their business are out of luck—unless they can qualify for a “microloan.” The concept of microfinance has been around for some time…Kiva, Grameen, ACCION® International, “community” funding, and the Small Business Administration…are only a few of the organizations providing microfinancing for small businesses.
Microfinancing has grown in recent years, not just because it is a great help to poorer entrepreneurs, but because it is good business. For instance, in the last decade, ACCION partners have disbursed more than 28.5 million loans, totaling $23.4 Billion, to men and women entrepreneurs in 23 countries. The repayment rate of these loans stands at 97 percent—a far cry from the recent performance of Wall Street.
Now, more main-stream sources of funding are joining the microfinacing arena. I have previously posted about Super Angels, Community Development Venture Capitalists (CDVC’s), Open Source Funding, and the shift by Venture Capitalists to earlier stage funding. All of these sources are looking at startups, and many of them are offering microfinancing.
Of even greater significance is the interest being shown in microfinance by mainstream investors. Here is just one indication: ACCION® International—the private non-profit pioneer in microfinance—is sponsoring a conference in Washington D.C., September 21-23; to “…analyze next-generation microfinance investments for pension funds, family funds, and private wealth managers.” “…the conference will also assess the latest venture capital, or ‘frontier,’ investment initiatives in industries supporting microfinance.” Perhaps institutional investors are beginning to look beyond Wall Street for their investments
Could microfinance be for you?
If you are an entrepreneur wanting to start a small business—and you have no money, microfinace may be something to consider. The SBA Microloan program is a good place to start. Look at several other avenues for microfinance by searching the Internet for Microloans—there are many sources available.
Good luck!
Healthcare Madness
In following the furor created by the heated debate over the House healthcare bill (H.R. 3200), I began to wonder—“who has read this bill?” So, I acquired a copy and began to read it myself. You can get your copy (with all 1,017 pages numbered) here.
Now, keep in mind that our elected representatives do not actually write bills—they are written by their staffs. That’s why politicians have staffs…to read and/or write the mountains of paperwork that pass through their office. Consequently, it is highly unlikely that any member of Congress has actually read the bill they are promoting. They work off of “papers” prepared for them by their staffs.
Likewise, it is highly unlikely that many other people have actually read the entire bill. First of all, it is written by lawyers, in the form of a legal document (like all bills), so it is difficult for a layperson to understand much of what it says. HR 3200 also contains amendments to existing laws—which also have not been thoroughly read by most lawmakers and laypersons. This opens up unlimited possibilities for interpretation…and misinterpretation.
(Just for fun, I picked a paragraph at random from the bill, and included it below):
(C) TECHNICAL AMENDMENT TO CORRECT DUPLICATE SUBSECTION DESIGNATION. —Subsection (d) of section 226A of such Act (42 U.S.C. 426–1), as added by section 201(a)(3)(D)(ii) of the Social Security Independence and Program Improvements Act of 1994 (Public Law 103–296; 108 Stat. 1497), is redesignated as subsection (d).
(This was taken from page 422, but I wonder how many people actually followed this thread to determine what the impact was?)
The legalese notwithstanding, I looked for references to the infamous “Death Panel.” Even though the bill is written so a layperson cannot understand the real meaning, I did find an area that was rather disturbing. Somewhere around page 427 (in the “Advance Care Planning” section), there is a reference to a “coalition of stakeholders,” guiding life sustaining treatment. This coalition is made up of people from government and quasi-government agencies and associations—but excludes the patient and any family members. It is easy to see where the term “Death Panel” came from. It will take a great deal of study (and maybe a great deal of explanation) of this area of the bill to figure out exactly what is meant.
In fact, no one should probably comment on HR 3200 until they have read the bill and understands what it really means. There is no question about badly needing healthcare reform, but this bill affects every person in the U.S. and it is much too important to be rushed into law within such a divisive atmosphere. So, why doesn’t everyone just take a breather and stop the madness.
Certainly, Congress needs to acknowledge the concerns voiced by many people, and address those concerns in the bill. They then need to mount an educational program to get the truth of the bill out in language that regular people can understand.
Likewise, those in opposition need to back off and allow changes to be made and education to occur. Jumping to ill-informed conclusions from a difficult-to-read document is not going to help anyone. (And I won’t even mention politics and lobbyists.)
COST?
This is very interesting, and something that every business owner and wage earner needs to pay attention to. Watch this blog for a future post containing some numbers from Congress’s “fuzzy math.”
Cash for Clunkers?
I just read that 4 out of 5 new cars sold through the “cash for clunkers” program were foreign brands. True, some foreign models are assembled in American factories, but even then, the far greatest stimulus through this program is to the foreign parts manufacturers, foreign assembly plants, and foreign owned businesses. The “cash for clunkers” program also seems to have helped Toyota get on track to become the largest auto producer in the world. (WSJ 7/29/09)
I am sure that this program does help many (not all) dealers, car salesmen, and financial institutions in the U.S. I’m also sure it has provided some benefit (at least temporarily) to the American auto industry. But, I wonder if that was the best way to spend $3 Billion (so far) of taxpayer money?
What if…
What if that $3 Billion had been allocated to small business in general. Money for expansion and growth. Money for new startups. Money for R&D. Money to retrain the unemployed. This is where meaningful re-employment will take place. Small businesses have virtually unlimited needs in order to achieve the economic recovery mandate set out for them by the current administration. And yes, small business may be the most innovative—but to innovate “quickly” they need to have access to capital. The $3 Billion just spent would have gone a long way to accomplish this.
That’s my take—what’s yours?
American Manufacturing…Bad News!
A recent joint report by Duke University and the Conference Board indicates that American manufacturing is continuing to fall further and further behind the rest of the world.
Here are some of the report’s highlights:
- 53 percent of the companies surveyed had offshore manufacturing strategies in place—up from 22 percent in 2005.
- 60 percent of companies with offshore strategies said they have aggressive plans to expand those strategies.
- “Globalization of Innovation” (engineering, R&D, product design, and software development) is accelerating, thus reducing the need for U.S. innovation.
- A domestic shortage of science and engineering talent is a key issue for off shoring projects. Off shoring compensates for domestic talent gaps.
So, the United States is falling further behind the rest of the world in both Innovation and manufacturing. It appears that lack of talent in America is a major cause. Why is that? If we do not have the talents to neither innovate nor manufacture, what is to become of the United States?
What needs to be done to create/develop the talent—and desire—necessary to again make the U.S. the mighty industrial nation it once was?
Wake Up Business People!
It is well enough that people of this nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.
—Henry Ford
The banking and monetary system Henry Ford was referring to is the system that recently plunged our country into the worst recession since the 1930’s. Now, that same system is up to their old tricks again.
Paul Krugman wrote an OP-ED piece for the New York Times yesterday, and here is the first paragraph:
Americans are angry at Wall Street, and rightly so. First the financial industry plunged us into economic crisis, then it was bailed out at taxpayer expense. And now, with the economy still deeply depressed, the industry is paying itself gigantic bonuses. If you aren’t outraged, you haven’t been paying attention.
Please take the time to read Krugman’s article here.
The antics of Wall Street are currently constructing the exact same scenario that just required taxpayer bailouts. According to Krugman, Andrew J. Hall, of Citigroup (the bank currently propped up with $45 Billion of taxpayer money) is now owed $100 Million, according to his employment contract.
Why does any of this matter to the small-business person? First of all, because Wall Street is using taxpayer money (your money) as part of their operating capital—with no benefit to you or your business.
Secondly, it is small business that will rebuild our economy and put people back to work—not Wall Street. It will therefore fall on small business (and their employees) to pay the bills of government assistance to failing companies….and there is no end in sight.
Are we “…ready to face up to the fact that we’ve become a society in which the big bucks go to bad actors, a society that lavishly rewards those who make us poorer(?)” (Paul Krugman)
I would like to hear from anyone who agrees, or disagrees, with Krugman’s assessment of our current financial system.
My Book
Any business crisis can be managed before it becomes fatal . . . Be Your Own Turnaround Manager tells you how. Click here for more information.