Ken McCarthy’s latest blog post titled “Sub-prime fallout and the amazing three-headed woman” is reprinted here. [Blog Post print]


Ken McCarthy’s latest blog post is reprinted here.

Sub-prime fallout and the amazing three-headed woman

The sub-prime mortgage meltdown has been in the news a lot lately.

A Wall Street Journal article (8/14/07) recently recounted tales of some of the people who’ve gotten caught in the cross-fire.

One woman applied for and was given a $1 million mortgage on her house in Marietta, Georgia. It was a typical come-on deal. Low interest upfront with a “piggy back” loan priced at 12%. Her payments have since jumped to $8,200 a month.

The idea was that she’d refinance later at more favorable terms. Well, later has come and not only is the house no longer valued at $1 mil (appraisals are coming in at $890,000 and less), but also the banks are no longer interested in “no down” loans. Now they want her to put up significant cash to get a new fixed 30 year loan.

– Say what?!

Anyway, the part of the article that jumped out at me was what she borrowed the money for: according to the article “to help fund a start-up that sells a patented fishing-rod holder.” Not surprisingly, the investment has not paid off.

What amazes me is not that this individual made such an investment – disastrous small business investments are made all the time – but that the Journal only mentions the deal in passing.

Granted this was an article about fallout from the sub-prime loan debacle, but still…$1 million in cash invested in a start-up…that sells a fishing rod holder?

To me that’s like glossing over the fact the person you’re interviewing has three heads or an extra arm.

– The cost of poor education

This speaks to the bizarre illiteracy that manifests itself daily in so-called business journalism. The same guys who write about what Rupert Murdoch is doing seem to be absolutely clueless when it comes to the mechanics of real business.I don’t know whether it’s deliberate or their “big business” bias is so strong they just don’t see how dumb they (the reporters) are. Probably the latter.

But God help anybody who is trying to get a picture of how business really works from reading the Wall Street Journal, Fortune, Forbes or any of those rags.

Where do people learn the realities of business?

The school of hard knocks…an experienced friend or relative…or taking a chance on the seminar merry-go-round.

It’s a testament to the tenacity of small business owners everywhere that anyone succeeds in creating a profitable business in this kind of information-starved environment.

Ken McCarthy

P.S. There is an alternative.

http://www.TheSystemIntensive.com

Since 1994, I’ve been working hard to even the information playing field for small businesses.

Thanks to the System Seminar and other training programs I’ve created over the years, small business owners have had access to training in Internet marketing superior to what’s available to most Fortune 500 companies.

My “students” – many of them millionaires in their own right now – were the first to get the clue on the power of e-mail marketing (1994)…banner advertising (1994)…auto-responders (1996)…pay-per-click advertising (2000) and Internet video (2005).

– Taking it on the road

For the first time ever, I’m taking System-level training on the road and personally conducting sessions in cities all over the US, Canada, and the UK.

(Hey, if touring is good enough for the Rolling Stones, it’s good enough for me.)

I just delivered the first Intensive in Chicago last weekend and from the reaction I received I know I’m on the right track.

“The System Intensive helped me take everything I’ve learned over the years and put it all together into a comprehensive strategy. Again, I was amazed by the quality of the content and the people I met.”

– Kristie McDonald – www.nitro-toyz.com (featured success story in this month’s StomperNet newsletter.)

“If you have any interest in developing an Internet-based business or integrating Internet marketing into your brick and mortar business, this seminar is a MUST. It will save you a lot of time and money and put the focus on the things you need to know to make money that are based in reality.”

– Martha Conway – No nonsense PR expert who has worked with Dan Kennedy

We’ve got trainings scheduled this fall for New York City, Phoenix, Los Angeles, San Francisco and Vancouver.

If you’re in one of these places or are up for a trip, check this out and see what we’re up to:

http://www.TheSystemIntensive.com

Ken McCarthy


     Ken McCarthy

Ken McCarthy organized and sponsored the first conference ever held on the subject of the commercial potential of the World Wide Web. His company Amacord Inc., formerly E-Media, was one of the first Internet-based businesses in the world.

In addition to working with small and mid-sized business clients since 1993, McCarthy was a consultant to NEC’s Biglobe, the largest online service in Japan, from 1996 to 2001. His book The Internet Business Manual was the first book on web entrepreneurship published in that country. He is also credited by Hotwired magazine with being one of the people responsible for the development and popularization of the banner ad, one of the key underpinnings of commercial Internet publishing.

A graduate of Princeton University, McCarthy came to the Internet industry with a varied background which included technical consulting for two of New York’s top investment banks, lecturing on educational psychology at MIT, Columbia, and NYU, and founding and operating a number of small businesses, including one that helped produce an Academy Award winning documentary. Ken McCarthy is associated with the following blogs: Ken McCarthy’s Blog, System Video Blog and Internet Video Marketing Letter

*IMNewswatch would like to thank Ken McCarthy for granting permission to reprint the latest blog posts.

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