Wednesday, February 2, 2011

manage personal finances


LaunchBox Digital, a VC firm specializing in angel, seed, and early stage investments, just wrapped up its third annual 12-week startup mentoring program. Similar to Y Combinator and TechStars, LaunchBox invests seed capital of $20,000 into startup teams and provides them with 12 weeks of education, mentorship, and access to advisers. The following 7 LaunchBox10 companies are graduating from this year’s program and will be going live as part of LaunchBox Demo Day, where the companies will present their businesses to potential investors and strategic partners.


Without further ado, here are the graduates:


CityPockets (Crunchbase profile): Today, we live in the world of the Groupon clone, and thanks to the Google-shunning colossus, “daily deal” websites now litter the Web. These sites have been a big hit among mom and pop shops and small businesses because they can be such an effective way to attract new, local customers. The problem for these merchants, however, has been converting new customers into loyal, repeat visitors. According to LaunchBox, less than 15% of “deal jumpers” return to the same merchant again without another deal offer. On the whole, these merchants struggle to retain the influx of new customers, failing to take the steps to establish that critical, lasting relationship with the consumer.


CityPockets.com is a real-time, self-serve merchant CRM platform that aims to address customer retention issues by allowing merchants to more easily capture user contact info and to offer repeat discounts. In addition, the platform empowers merchants to manage gaps in supply and demand by sending out time-sensitive, limited-quantity offers whenever it makes sense for their businesses. Customers opt-in to follow their favorite merchants via CityPockets’ web and mobile apps.


Businesses interested in being part of the CityPockets Merchant Network can sign up here, and Daily Deal users can sign up at CityPockets.com to access and keep track of all voucher purchases from across popular Daily Deal sites on a single platform, and eventually receive more offers from relevant merchants of their choice.


FiscalPie (Crunchbase profile): FiscalPie breaks down the barrier between personal finance and social networks by providing users with Facebook applications that enable users to compare their finances with others and, in turn, learn how to make more educated financial decisions. One such FiscalPie application, “Retire Where?” shows you which cities you’ll be able to afford in retirement and allows you to compare your it with the future location of your friends.


FiscalPie works to make the myriad sources of financial information on the Web more reflective of your own specific circumstances—while keeping your information private —by creating an anonymous network of people that share similar financial profiles. Until the individual truly becomes part of the conversation, financial information has little significance. FiscalPie is hoping to start that dialog—socially.


HEALTHeME (Crunchbase profile): HEALTHeME delivers treatments that empower those struggling with weight, stress, and mood issues to better manage their health via the web and their mobile phone. The HEALTHeME platform combines clinical treatments and artificial intelligence to create customized behavior modification plans based on users’ lifestyles, health goals, and personality type. HEALTHeME then leverages real-time coaching, social networks and user’s healthcare providers to offer a truly personalized user experience. Would love to see an app for this, too.


Keona Health (Crunchbase profile): Keona Health is a company that optimizes admissions for primary care providers, increasing both productivity and cost savings. Keona’s Patient Decision Support system empowers patients with instant, personalized advice that aims to resolve up to 10% of patient cases at home. Triage nurses review each case, but with the goal of being 5 times faster and with more comprehensive safety checks than before. As a result of the greater emphasis on in-home consultation, when patients need to travel into the office to see a doctor, they should find reduced delays and wait times.


Keona has partnered with UNC and Duke to develop a decision engine that has already analyzed over 1,000 real medical records, and UNC Campus Health Services is acting as Keona’s first beta customer. During 2011, Keona Health plans to expand to several additional universities.


Leaguescape (Crunchbase profile): Leaguescape is a new platform for fantasy sports that combines social gaming and betting and allows you to collect all your fantasy sports leagues in one place. Like the Pokerstars or Full Tilt Poker of fantasy sports, Leaguescape allows fantasy sports enthusiasts to manage and bet on their season leagues and get their daily fix of fantasy sports with a variety of game offerings that enable users to draft, watch, and win on a daily basis.


Drawing on the online poker model, Leaguescape provides all things a fantasy sports bettor could need, including a variety of gaming types, rewards, and promotions.


Slipstream (Crunchbase profile): The likelihood is that your Twitter stream is an unfavorable mix of a few things you care about and a lot you don’t. You don’t want to miss out on important news and events, but you don’t have time to read everything. Slipstream wants to rid your stream of irrelevant Tweets.


Today, Slipstream launched its third prototype, a Chrome extension that lets you hide tweets on Twitter.com. It works seamlessly to help you get rid of things like Foursquare checkins, paper.li mentions, or when people you’re following start live-tweeting events. Gonezo. Simply click the “Hide” link that Slipstream adds to the end of every tweet and begin filtering your stream. It’s that easy.


Spring Metrics (Crunchbase profile): Spring Metrics helps you grow your online business by providing a deeper understanding of your customers and how they interact with your website. Spring Metrics seeks to make complex web analytics more friendly and digestible for marketers and e-commerce professionals who don’t want to wrestle with the complexity of traditional analytics products.


With an easy-to-use interface that requires no coding knowledge, Spring Metrics eliminates the hassle of creating conversion funnels and goals. The company’s real-time dashboard offers an array of conversion-oriented metrics, and the “Insight Engine” unearths actionable patterns in the data—patterns aimed at helping turn more visitors into paying customers.



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Friday, January 28, 2011

Making Easy Money






Yesterday's announcement that Google's Eric Schmidt will be handing the CEO reins back to co-founder Larry Page came as a shock, but with the company's aura of invincibility fading, and its core business showing signs of age, the time was right for a change. There was "an example every hour," of how triumvirate decision-making by Schmidt, Page, and co-founder Segrey Brin was hurting the company, Schmidt said. If Google wants to assure investors and consumers that rumors of its looming insignificance have been greatly exaggerated, there are a few key things that Larry has to do.



No. 1: Fix Search

Google's cash cow is its online-search advertising business, but the search results are starting to look awfully spammy. Between content farms that flood the Internet with meaningless search bait and black hat optimizers that use sleazy tricks to get top results, there are entire industries devoted to gaming Google's algorithms.



People who depend on Google for their livelihood have started to notice, and consumers are showing signs of getting antsy: There is a reason Microsoft's Bing quickly picked up 12 percent of the search market, and it's not because of its Gossip Girl product placements, or even vastly superior search results. Google has also drawn some ill will with an aggressive, some say illegal, tendency to push its own services to the top of the page.



It looks like Larry gets the seriousness of the problem. Friday, on day one of his regime, Google acknowledged the issue in a blog post, even as it downplayed its severity. "Reading through some of these recent articles, you might ask whether our search quality has gotten worse," said principal engineer Matt Cutts. "The fact is that we’re not perfect, and combined with users’ skyrocketing expectations of Google, these imperfections get magnified in perception. However, we can and should do better."



It will take more than a wonky breakdown, but it's a start.



No. 2: Find Growth

The aforementioned cash cow is still so lucrative that it's easy to forget that Google has never really succeeded in any other business. Despite the ubiquity of Gmail and YouTube, they are not yet successful stand-alone businesses. YouTube only recently made it into the black after incurring hundreds of million of dollars in losses over the years.



It's not like Google isn't aware of the problem. Witness the frenzied diversification into anything that looks hot: cars that drives themselves, social networks, and yesterday's long-expected news of a Groupon clone. But trying everything hasn't produced much of anything.



Larry needs to ditch the side projects and focus on the most promising ones: the Android mobile-phone operating system, and the mobile ad network AdMob, which even makes money from iPhones as it serves up 2 billion ads a day.



No. 3: Stop the Brain Drain

Here's an enigma for Larry to unravel: Why does a company with five-star chefs, high-tech nap pods, and free massages have to throw millions of dollars in cash money at employees to get them to stay?



Part of the problem is Google's convoluted management structure, which Page is clearly trying to fix. If a team has been working on an amazing project for a year, only to hear that it overlaps with someone else's pet project, who wouldn't want to jump ship? But it also has to do with Google's size and a potentially fatal inability to face up to an unpleasant reality. From what we hear, there's reluctance from some of the old guard to accept that Google is a massive corporation now.



There is a major intangible at play as well, something that may not be easy for someone who is more Chief Engineer than Chief Executive to grapple with. If the ambitious go-getters that make it through Google's onerous interview process sense that the cool, sexy projects are happening at Facebook, Apple, or some stealth VC project with no name, then no amount of money is going to keep them on side, no matter how big a money truck Google backs up to their cubicle.



Which leads to....



No. 4: Consider a Personality Transplant



Tech bloggers were smitten with Eric Schmidt, but for all the wrong reasons. Sure, he grew Google into a $200 billion behemoth, but he also had a weakness for creepy Big Brother jokes delivered so dryly that no one could be sure he was joking. Contrast that with the controlling and charismatic Steve Jobs, surely one of the best salesmen in modern history, with a reality distortion field that may have made enemies but also bestowed an ineffable cool on his entire company.



Larry, by all accounts, makes Eric Schmidt look like Steve Jobs.



Ken Auletta explains:



He is a very private man, who often in meetings looks down at his hand-held Android device, who is not a comfortable public speaker, who hates to have a regimented schedule, who thinks it is an inefficient use of his time to invest too much of it in meetings with journalists or analysts or governments. As C.E.O., the private man will have to become more public.



Google's engineer-driven approach to new products has been a long-standing problem. (Google Wave, anybody?) Unlike Apple, it seems to build for engineers and developers, not consumers. That's great when you're making an open source mobile platform like Android, which is hot on the iPhone's tail due to its openness and potential ubiquity across multiple carriers and devices. It's not so great when you made everyone on Gmail opt into Google Buzz ’ or for creating fanboys and girls who want to use your products, even if they have to anyway.



Either way, Larry, you're going to need some charm to lend Google the same cool factor it had last time you were in charge. Maybe start by looking up from your Android phone every once in a while.




Submitted by Taylor Cottam of Economy Politics

Another Call For The Fed To Raise Rates, So Big Banks Can Start Lending And Hiring Again

As we explained in our previous article Seeking an interest rate solution,
real interest rates are negative and nominal short term interest rates
are near zero. That is not healthy. What is a healthy interest rate? My
view is that short term rates should be above 1% to make them positive
and closer to 2%.  It has caused consumer credit to contract. 



Of course, banks would argue that a healthy spread is the key to a
healthy banking sector.  Raising the rate would likely flatten the yield
curve.  What gives? 



How banks really make money



Banks are not in the business of making loans per se.  They are in the
business of making more off their assets than their liabilities.  In
normal times, underwriting consumer and business loans are the best
avenue for them to pursue that goal. 



Banks, and many hedge funds, really make money off the yield curve. They
have assets with a higher duration than their liabilities. Although
banks fund their assets with a mix of checking, demand deposits and some
longer dated term deposits (CDs), they have the ability to swap out
longer term deposits (CDs) to make their liabilities duration almost
zero. Their assets, which are typically loans to consumers and
businesses, have a longer duration.  Since the yield curve almost always
slopes upward, they make money off the yield curve spread plus the
credit spread. 



In 2008, I did some modeling for a large financial institution that had
duration of liabilities of roughly 3.5 years, based upon mostly term
deposits. They were able to bring the duration on their entire
liabilities portfolio down to a duration of less than 0.25 (3 months) by
transacting a simple fixed for floating amortizing swap based upon
their CD maturity schedule. Every quarter, with the 3 month rate sunk
below 25 bps, we would receive a large cash settlement from our
investment bank counterparty. I didn't stick for the full term of the
swap, but on a 1.5 BB principal, our estimate of earnings from the swap
alone stood at $100MM over three years. Based upon where short term
rates have stayed, they could have made 1.5 times that.



With our cost of capital below 25 bps, we did the thing that any
rational person would do.  We stopped lending to people and
businesses and lent to the US government instead.  We bought Treasuries.
In this case, the 5-year yields were above 2% bringing our expected
risk free spread above 2 points.



In 2008 and 2009, when it became obvious that Bernanke would likely
leave short-term rates low for an extended period of time, yield curve
risk became an afterthought. Those actions have been largely vindicated.
If we held the Treasuries for at least three years, the term of the
swap, we would just sit back and make money off the spread without
having to originate a single loan.



You get to be a bank, without having to do any work to originate loans.
Who needs a large origination group, when you can make a ton of money
and fire half of your employees?



Pushed or Pulled into Treasuries



During the recession there was often talk of a flight to quality.
Investors would flee risky assets and go into something safe. However,
investors are not always being pushed, they are often pulled. During the
recession, we began seeing a very steep yield curve. The spread
investors are as much lured by the allure of easy money with a steep
yield curve as they are by the fear of risky assets.





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Chesapeake Bay, Marcellus Shale environmental issues could collide <b>...</b>

The details come just as Pennsylvania struggles to calculate its bill for cleaning up the Chesapeake Bay. In all the hand-wringing and cost-crunching that followed the Dec. 29 news that Pennsylvania must...

Asian Cup: Bad <b>News</b> for Japan, and Dortmund - NYTimes.com

Japan's Shinji Kagawa will miss Saturday's Asian Cup final in Qatar, and could be lost to first-place Borussia Dortmund of the German Bundesliga for the rest of the season.

CBS <b>News</b> Finds North Korea-Like Approval for SOTU

Yet CBS News ran an "online poll," which is getting plenty of attention, showing that 92% of people "approve of the proposals the president made in his [State of the Union] speech." The polling method used 500 supposedly representative ...



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Chesapeake Bay, Marcellus Shale environmental issues could collide <b>...</b>

The details come just as Pennsylvania struggles to calculate its bill for cleaning up the Chesapeake Bay. In all the hand-wringing and cost-crunching that followed the Dec. 29 news that Pennsylvania must...

Asian Cup: Bad <b>News</b> for Japan, and Dortmund - NYTimes.com

Japan's Shinji Kagawa will miss Saturday's Asian Cup final in Qatar, and could be lost to first-place Borussia Dortmund of the German Bundesliga for the rest of the season.

CBS <b>News</b> Finds North Korea-Like Approval for SOTU

Yet CBS News ran an "online poll," which is getting plenty of attention, showing that 92% of people "approve of the proposals the president made in his [State of the Union] speech." The polling method used 500 supposedly representative ...



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Chesapeake Bay, Marcellus Shale environmental issues could collide <b>...</b>

The details come just as Pennsylvania struggles to calculate its bill for cleaning up the Chesapeake Bay. In all the hand-wringing and cost-crunching that followed the Dec. 29 news that Pennsylvania must...

Asian Cup: Bad <b>News</b> for Japan, and Dortmund - NYTimes.com

Japan's Shinji Kagawa will miss Saturday's Asian Cup final in Qatar, and could be lost to first-place Borussia Dortmund of the German Bundesliga for the rest of the season.

CBS <b>News</b> Finds North Korea-Like Approval for SOTU

Yet CBS News ran an "online poll," which is getting plenty of attention, showing that 92% of people "approve of the proposals the president made in his [State of the Union] speech." The polling method used 500 supposedly representative ...



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Chesapeake Bay, Marcellus Shale environmental issues could collide <b>...</b>

The details come just as Pennsylvania struggles to calculate its bill for cleaning up the Chesapeake Bay. In all the hand-wringing and cost-crunching that followed the Dec. 29 news that Pennsylvania must...

Asian Cup: Bad <b>News</b> for Japan, and Dortmund - NYTimes.com

Japan's Shinji Kagawa will miss Saturday's Asian Cup final in Qatar, and could be lost to first-place Borussia Dortmund of the German Bundesliga for the rest of the season.

CBS <b>News</b> Finds North Korea-Like Approval for SOTU

Yet CBS News ran an "online poll," which is getting plenty of attention, showing that 92% of people "approve of the proposals the president made in his [State of the Union] speech." The polling method used 500 supposedly representative ...


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Chesapeake Bay, Marcellus Shale environmental issues could collide <b>...</b>

The details come just as Pennsylvania struggles to calculate its bill for cleaning up the Chesapeake Bay. In all the hand-wringing and cost-crunching that followed the Dec. 29 news that Pennsylvania must...

Asian Cup: Bad <b>News</b> for Japan, and Dortmund - NYTimes.com

Japan's Shinji Kagawa will miss Saturday's Asian Cup final in Qatar, and could be lost to first-place Borussia Dortmund of the German Bundesliga for the rest of the season.

CBS <b>News</b> Finds North Korea-Like Approval for SOTU

Yet CBS News ran an "online poll," which is getting plenty of attention, showing that 92% of people "approve of the proposals the president made in his [State of the Union] speech." The polling method used 500 supposedly representative ...



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Chesapeake Bay, Marcellus Shale environmental issues could collide <b>...</b>

The details come just as Pennsylvania struggles to calculate its bill for cleaning up the Chesapeake Bay. In all the hand-wringing and cost-crunching that followed the Dec. 29 news that Pennsylvania must...

Asian Cup: Bad <b>News</b> for Japan, and Dortmund - NYTimes.com

Japan's Shinji Kagawa will miss Saturday's Asian Cup final in Qatar, and could be lost to first-place Borussia Dortmund of the German Bundesliga for the rest of the season.

CBS <b>News</b> Finds North Korea-Like Approval for SOTU

Yet CBS News ran an "online poll," which is getting plenty of attention, showing that 92% of people "approve of the proposals the president made in his [State of the Union] speech." The polling method used 500 supposedly representative ...



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Chesapeake Bay, Marcellus Shale environmental issues could collide <b>...</b>

The details come just as Pennsylvania struggles to calculate its bill for cleaning up the Chesapeake Bay. In all the hand-wringing and cost-crunching that followed the Dec. 29 news that Pennsylvania must...

Asian Cup: Bad <b>News</b> for Japan, and Dortmund - NYTimes.com

Japan's Shinji Kagawa will miss Saturday's Asian Cup final in Qatar, and could be lost to first-place Borussia Dortmund of the German Bundesliga for the rest of the season.

CBS <b>News</b> Finds North Korea-Like Approval for SOTU

Yet CBS News ran an "online poll," which is getting plenty of attention, showing that 92% of people "approve of the proposals the president made in his [State of the Union] speech." The polling method used 500 supposedly representative ...

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PROFESSOR OF POP: KUSF In The <b>News</b>

KUSF In The News. Members of the San Francisco Board of Supervisors yesterday condemned the sale of KUSF's 90.3 fm frequency to an out-of-town broadcaster. The SF Weekly covers the story at some length here. ...

President Obama to Propose Partial Budget Freeze and Earmark Ban <b>...</b>

Pursuing a path of deficit reduction and government reform, President Obama will tonight in his State of the Union address call for a ban on earmarks and he will propose a five year budget freeze on non-security related discretionary ...

SpeechTrans adds Facebook Voice Translation Chat | iLounge <b>News</b>

iLounge news discussing the SpeechTrans adds Facebook Voice Translation Chat. Find more Apps + Games news from leading independent iPod, iPhone, and iPad site.


eric seiger

PROFESSOR OF POP: KUSF In The <b>News</b>

KUSF In The News. Members of the San Francisco Board of Supervisors yesterday condemned the sale of KUSF's 90.3 fm frequency to an out-of-town broadcaster. The SF Weekly covers the story at some length here. ...

President Obama to Propose Partial Budget Freeze and Earmark Ban <b>...</b>

Pursuing a path of deficit reduction and government reform, President Obama will tonight in his State of the Union address call for a ban on earmarks and he will propose a five year budget freeze on non-security related discretionary ...

SpeechTrans adds Facebook Voice Translation Chat | iLounge <b>News</b>

iLounge news discussing the SpeechTrans adds Facebook Voice Translation Chat. Find more Apps + Games news from leading independent iPod, iPhone, and iPad site.


eric seiger

PROFESSOR OF POP: KUSF In The <b>News</b>

KUSF In The News. Members of the San Francisco Board of Supervisors yesterday condemned the sale of KUSF's 90.3 fm frequency to an out-of-town broadcaster. The SF Weekly covers the story at some length here. ...

President Obama to Propose Partial Budget Freeze and Earmark Ban <b>...</b>

Pursuing a path of deficit reduction and government reform, President Obama will tonight in his State of the Union address call for a ban on earmarks and he will propose a five year budget freeze on non-security related discretionary ...

SpeechTrans adds Facebook Voice Translation Chat | iLounge <b>News</b>

iLounge news discussing the SpeechTrans adds Facebook Voice Translation Chat. Find more Apps + Games news from leading independent iPod, iPhone, and iPad site.


eric seiger

PROFESSOR OF POP: KUSF In The <b>News</b>

KUSF In The News. Members of the San Francisco Board of Supervisors yesterday condemned the sale of KUSF's 90.3 fm frequency to an out-of-town broadcaster. The SF Weekly covers the story at some length here. ...

President Obama to Propose Partial Budget Freeze and Earmark Ban <b>...</b>

Pursuing a path of deficit reduction and government reform, President Obama will tonight in his State of the Union address call for a ban on earmarks and he will propose a five year budget freeze on non-security related discretionary ...

SpeechTrans adds Facebook Voice Translation Chat | iLounge <b>News</b>

iLounge news discussing the SpeechTrans adds Facebook Voice Translation Chat. Find more Apps + Games news from leading independent iPod, iPhone, and iPad site.


eric seiger

PROFESSOR OF POP: KUSF In The <b>News</b>

KUSF In The News. Members of the San Francisco Board of Supervisors yesterday condemned the sale of KUSF's 90.3 fm frequency to an out-of-town broadcaster. The SF Weekly covers the story at some length here. ...

President Obama to Propose Partial Budget Freeze and Earmark Ban <b>...</b>

Pursuing a path of deficit reduction and government reform, President Obama will tonight in his State of the Union address call for a ban on earmarks and he will propose a five year budget freeze on non-security related discretionary ...

SpeechTrans adds Facebook Voice Translation Chat | iLounge <b>News</b>

iLounge news discussing the SpeechTrans adds Facebook Voice Translation Chat. Find more Apps + Games news from leading independent iPod, iPhone, and iPad site.


eric seiger

PROFESSOR OF POP: KUSF In The <b>News</b>

KUSF In The News. Members of the San Francisco Board of Supervisors yesterday condemned the sale of KUSF's 90.3 fm frequency to an out-of-town broadcaster. The SF Weekly covers the story at some length here. ...

President Obama to Propose Partial Budget Freeze and Earmark Ban <b>...</b>

Pursuing a path of deficit reduction and government reform, President Obama will tonight in his State of the Union address call for a ban on earmarks and he will propose a five year budget freeze on non-security related discretionary ...

SpeechTrans adds Facebook Voice Translation Chat | iLounge <b>News</b>

iLounge news discussing the SpeechTrans adds Facebook Voice Translation Chat. Find more Apps + Games news from leading independent iPod, iPhone, and iPad site.


eric seiger
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PROFESSOR OF POP: KUSF In The <b>News</b>

KUSF In The News. Members of the San Francisco Board of Supervisors yesterday condemned the sale of KUSF's 90.3 fm frequency to an out-of-town broadcaster. The SF Weekly covers the story at some length here. ...

President Obama to Propose Partial Budget Freeze and Earmark Ban <b>...</b>

Pursuing a path of deficit reduction and government reform, President Obama will tonight in his State of the Union address call for a ban on earmarks and he will propose a five year budget freeze on non-security related discretionary ...

SpeechTrans adds Facebook Voice Translation Chat | iLounge <b>News</b>

iLounge news discussing the SpeechTrans adds Facebook Voice Translation Chat. Find more Apps + Games news from leading independent iPod, iPhone, and iPad site.

Monday, January 24, 2011

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The big news out of a majority of state capitols is that Obamacare’s Medicaid mandates will exacerbate state budget problems and drive many states to the brink of insolvency.


Thirty-three Republican governors and governors-elect have signed a letter to the White House and Congress making an emphatic appeal that Obamacare’s Medicaid provisions be repealed.


Medicaid pays health care and long-term care expenses for certain categories of individuals. Medicaid has many problems, but the central one is that it costs taxpayers nearly $400 billion annually without providing recipients a high quality of care.


National spending on Medicaid has more than quintupled over the past two decades, and about 16 percent of the population is currently enrolled. A recent study from the University of Virginia found that Medicaid patients have worse surgical outcomes than individuals without insurance. Despite these problems, Obamacare relies heavily on the Medicaid program to reduce the number of individuals without health insurance.


Obamacare’s Medicaid mandates include a requirement that states maintain current program eligibility along with a required Medicaid expansion that is expected to increase national enrollment by around 20 million. If a state reduces eligibility for Medicaid, it will lose all its federal support for the program, which is at least half of every state’s Medicaid spending. This means a state would lose the federal tax contributions its taxpayers send to Washington that eventually return to the state in the form of Medicaid reimbursement.


“States are unable to afford the current Medicaid program, yet our hands are tied by the maintenance of effort (MOE) requirements,” the governors wrote. “The effect of the federal requirements is unconscionable; the federal requirements force governors to cut other critical state programs, such as education, in order to fund a ‘one-size-fits-all’ approach to Medicaid. Again, we ask you to lift the MOE requirements so that states may make difficult budget decisions in ways that reflect the needs of their residents.”


Although the letter was signed by only Republicans, Medicaid is at least as much of a concern in blue states. For example, the new governor of New York, Andrew Cuomo, has proposed cutting $4 billion of projected spending on Medicaid (this savings will be split between the state and the federal government) to help close a $10 billion budget gap.


How will states reduce Medicaid spending, given that they are prevented from reducing program eligibility? There are two primary options: (1) reduce provider payment rates, and (2) cut program benefits. Almost all states have undertaken these actions over the past several years. Reducing payment rates decreases the number of providers who accept Medicaid recipients. Cuts to Medicaid benefits, which are often more generous than those offered by private insurance, have also occurred. The combination of these cuts will likely reduce quality of care and increase the number of recipients who head to emergency rooms for basic care.


Of course, states could keep their Medicaid programs in tact and take the scalpel to other budget items, such as education, transportation, or law enforcement, which are also being cut in many states. Or they could dramatically increase state taxes. How do these options sound?


The one option that should be off the table is a continuance of the federal Medicaid bailout, which was enacted as part of the February 2009 stimulus bill. This provision greatly increased the federal contribution toward state Medicaid spending and disproportionately benefited states with the most bloated programs. The country cannot afford to further increase the national deficit to fund the broken Medicaid entitlement. Instead of throwing more money at Medicaid, policymakers at the federal and state level should grapple with its structural problems.


Medicaid is desperately in need of reform at the federal and state levels, not expansion. States have different characteristics and priorities and need greater flexibility to tailor the Medicaid program to their own specifications. This is true of states with Republican and Democratic governors. This Congress should seriously consider the immediate budgetary concerns of the states as well as structural reforms that would improve care for beneficiaries and reduce taxpayer burden in the longer term. In fact, states should also demand greater flexibility from the federal government in terms of eligibility, benefits, cost sharing, and overall administration and management.








Jeff Gross/Getty Images




The Los Angeles Dodgers are planning to start Jay Gibbons and Marcus Thames in left field to open the 2011 season. 


No, that’s not a typo. 


It is the same Jay Gibbons who was out of the league in 2008 and 2009 only to resurface in Los Angeles in 2010 and hit .280 with five HR in 75 AB.  It is the same Marcus Thames who has never had more than 348 AB in a season and is a career .248 hitter.


In regards to Gibbons, obviously it’s a tiny sample size and impossible to draw any conclusions from.  The fact of the matter is that Gibbons hasn’t posted a usable season since 2005 (.277, 26 HR) and, at 34 years old, it's nearly impossible to expect any significant production in 2011.  In fact, it would appear much more likely that he falls flat on his face.


Thames has power, but strikes out a ton (28.1 percent over his 1,946 AB career) making it nearly impossible to hit for a usable option.  He’s never had the opportunity to play full time and is much better suited as part of a platoon. 


But is a Gibbons/Thames pairing better than what they may have elsewhere?


The Dodgers have a pair of in-house options who could emerge by year’s end and give their current platoon a run for their money.  Let’s take a look:


Trayvon Robinson
He spent the year at Double-A in 2010, hitting .300 with nine HR, 57 RBI, 80 R and 38 SB.  The 10th-round draft pick in 2005 has slowly made his way through the Dodgers system and now, at 23, appears primed to take the next step.


He has the potential to be a dynamic top-of-the-order hitter, with 85 stolen bases over the past two seasons.  However, he needs to improve his contact rate if he has any intention of making an impact.  In 2010, he struck out 125 times versus 73 walks.  It was his fourth straight season of at least 104 Ks and the first time he has walked more than 60 times in a year.


To get an idea, just look at his strikeout rates over the past four years:



  • 2007: 30.05%

  • 2008: 23.69%

  • 2009: 27.13%

  • 2010: 28.80%


It's impossible to be a usable leadoff type option with that type of strikeout rate.  Robinson needs to be able to get on base regularly and if he isn’t making contact, it is just not going to happen.  With the fear of his strikeout rate further increasing as he moves up against tougher competition (he hasn’t played above Double-A), he appears to be a longshot at this point.  He has the speed, but needs to develop the rest of his game early in 2011.


Jerry Sands
He split time between Single and Double-A in 2010 hitting .301 with 35 HR, 93 RBI, 102 R and 18 SB.  The SB total is probably a bit deceiving and I wouldn’t put any stock in it.  His ticket to the major leagues is his power, and he showed it off in a big way.


He was consistently good at each level he stopped at in 2010, helping to give hope that he can maintain the power as he climbs the ladder:



  • Single-A: .333, 18 HR, 46 RBI in 243 AB

  • Double-A: .270, 17 HR, 47 RBI in 259 AB


Like Robinson, he also could have a problem with strikeouts as he moves to the upper-levels, though his rate was actually better in 2010. 


At Double-A he posted a 23.94 percent rate, and while that is concerning, his power certainly helps to offset it.  Yes, there is a concern that he may hit for a lower average than fantasy owners would prefer, but if he hits a ton of home runs it is something that we can easily overlook.  Plus, you have to think that his walk rate (12.7 percent) gives hope that he can keep the strikeouts under control.


Power hitters are no longer a certainty in baseball, so someone that can bring 30-plus HR power to the table is always going to have value.  The 28th-round draft pick in 2008 easily could overtake Gibbons/Thames for the LF job, or maybe the Dodgers will get tired of the light-hitting James Loney filling 1B (Sands has seen significant time both at 1B and in the outfield in the minors). 


Sands should start the year at Triple-A and if he makes a statement early, it wouldn’t be surprising to see him in the outfield before long.


What are your thoughts on these two players?  Who do you think has the better chance of reaching the major leagues in 2011?  Would you target either in fantasy formats?


**** Make sure to order your copy of the Rotoprofessor 2011 Fantasy Baseball Draft Guide, selling for just $5, by clicking here. ****


Make sure to check out our other Prospect Reports as we wrap up 2010 and head towards 2011:



  • Ackley, Dustin

  • Archer, Chris

  • Britton, Zach

  • Cousins, Scott

  • Iglesias, Jose

  • Kipnis, Jason

  • Lawrie, Brett

  • Mesoraco, Devin

  • Pineda, Michael

  • Ramos, Wilson

  • Revere, Ben

  • Taylor, Michael


THIS ARTICLE IS ALSO FEATURED ON WWW.ROTOPROFESSOR.COM







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Tuesday, January 18, 2011

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Dean previously worked at the San Jose Mercury News, the Wall Street Journal, the Red Herring, the Los Angeles Times, the Orange County Register and the Dallas Times Herald. He is the author of two books, Opening the Xbox and the Xbox ...