Big or small, you have a good shot at finding some free interns for your company this summer. I’d recommend giving it a shot.

Don’t pay them. If someone is ready to work for free there is a good chance that they are really interested in what they are doing.

If they work out well, you’ve just landed a good employee — which is damn hard to find I might add. If they don’t work out, your out $0 and you can move on to the next person.

Suggestion for current college students: switch your degree to something in very high demand. If you can’t figure that one out on your own, I suggest study of another type.

That dream received a blow in January when Google announced they were discontinuing their print advertising program. A short time later, in February, Google relegated their radio advertising program to the same fate.

I think these stories say more about the state of print and radio than they do about Google’s failure to expand past online search and display advertising. Rather than investing time and capital in to sinking ships Google decided to cut their losses.

Wonder how bad things could get? Brian McDaniel wrote an interesting blog post comparing the newspaper industries print advertising revenues verse their online advertising revenues. Take a look at his revenue convergence prediction charts. Ouch.

How about radio? Pandora (and probably Last.fm), not satellite radio, will deliver the final death blow.

People don’t like to accept a future where their values may be diminished. The answers were obvious but newspaper execs preferred to bury their heads in the sand. The same could be said of radio.

Newspapers and radio no longer enjoy a monopoly on attention. As their overinflated advertising revenues vanish, those same dollars may very well not resurface online. As an advertiser, I am very happy I can purchase a slice of the same pie for a lot less.

One of the things I do fairly well is reverse engineer business models. As an entrepreneur and investor this is probably the most important skill you can have. Anyone can be a copycat, but that just doesn’t mean anything. If you are truly good at doing this it allows you to copy best practices while ignoring the stuff that doesn’t matter.

When comparing Enron with American investment banks I saw underlying business models that were disturbingly close. In itself that is worth a post, but I don’t have the time to make it (this one is a stretch in itself but I feel it needs to be made.) Here specifically I am interested in how both hid and continue to hide liabilities off the balance sheet.

Truthfully I suspect a ton of companies have done or do similar things Enron did. The companies Enron dealt with didn’t seem to have a big problem helping them out (anyone remember Arthur Anderson?) The banks are more or less doing the same thing, except they can spend billions of dollars on lawyers to ensure everything follows ever single law while gliding through the loopholes. Enron’s mistake was playing dummy while leaving the job up to an amateur. Oops.

It was no surprise to me last night when the following story popped up on Bloomberg.

Bank of America Corp. Chief Executive Officer Kenneth D. Lewis may face scrutiny by the U.S. Securities and Exchange Commission for failing to disclose mounting losses at Merrill Lynch & Co. because of pressure from federal regulators to complete the takeover.

…

Cuomo revealed in a letter yesterday to Congress and federal regulators that Lewis testified in December that then- Treasury Secretary Henry Paulson may have threatened to remove the bank’s management and directors if the lender tried to back out of buying Merrill. Lewis said he was instructed by federal officials not to disclose Merrill’s losses, his desire to back out of the merger or the intervention of regulators, according to Cuomo.

(By the way, did you know when Hank took the job as Treasury Secretary he had a net worth of around $500 million? I have no idea what it is now.)

There have probably been a whole lot of illegal things going on within the federal government in regards to the banking bailout. This can not be the first or the only.

What makes this story even exist is that there are regulatory checks and balances in place. The SEC has a job to make sure laws are being followed. They have the authority to enforce those laws and they will.

The Federal Reserve along with the Treasury, on the other hand, act alone and are pretty much making up the rules as they go along. The elected representatives who should be watching over them may or may not have any idea what is going on. Hell, it sounds a lot like Abu Ghraib.

In all of the businesses I have examined and studied I have never seen so many smoke and mirrors. Henry Paulson, Ben Bernanke, and Timothy Geithner are delivering the lies and bullshit by the boatload. I am a complete loss how anyone in the news media actually believes what any of these guys are saying. Anyone remember this guy?

I am not naive. Unlike nearly everyone protesting the bailouts and intervention I know all too well what would happen if regulators and the Fed stood back. Countless bank accounts, retirement accounts, life insurance pools, insurance pools, and pension funds would be heading straight to zero. Many have already gone to zero, most have taken serious haircuts.

Will the alternative path we are taking be less painful or shorter? I don’t know.

Pay attention what banks you do business with. If necessary, consider placing bank failure clauses in your contracts. Irregardless of what the FDIC does a few shake ups in the upcoming could very well bankrupt your company. If you are overseas, you should be paying even closer attention. Chances are your bank is holding some of the horse shit debt US banks minted.

The party is over, most of that debt simply can not be repaid. Junk sub prime debt was the final crescendo, not the cause of the credit crises. As time goes on each level of debt becomes more difficult to service right down to the good stuff. The math just stops working.

Who holds the debt? Your local bank, money market fund, your state’s retirement pension, and so on.

The only real “solution” involves moving the liabilities to the government, a.k.a everyone. Instead of having your bank account balance go to zero over night or your retirement account dropping in value by 90%, your pay off period will be stretched over a matter of decades (what does this look like?)

Here are a few things I’m seeing — many publishers are waiting in line to get wiped out.. Ad rates are down everywhere. Publishing companies both online and offline are laying off lots of people and going bankrupt.

The best prediction I can make is those with the least overhead survive. Each time a competitor bites the dust that frees up more of attention that can be driven to your own properties. Armed with a generic domain name a single person can now establish niche dominance (hint, you can’t build all that content on your own.)

On the fundamental economic level things have taken a turn for the worst. The whole model that relied on credit growth is dead. The global credit super cycle did collapse. At this point, there is no turning back. What we are dealing with is tens of trillions of dollars, not 2 or 3. My guess is that real estate prices and the US stock market could very well be headed to 1980s levels. The implications to the lower & middle class will be devastating. A large chunk of the upper class will be joining them. I can’t even begin to describe how politically destabilizing this will be for the developing world.

It is a fair assessment to say in recent years savings & investment have been confused with consumption. Baby boomer retirement savings were actually just financing the extravagant lifestyles of a select group who cashed out as others bought in. Now they won’t be retiring.

Again, my suggestions remain: kill your long term liabilities and hold on to cash. If you are positioned to benefit from a down turn (my company is) hire good people.

There still is money to be made out there. The people who do well during a downturn are the ones who cash in big during the next bubble.

Given the lengths of the recent blog posts, may be I should downgrade to twitter?

Have goals for 2009? As always, I set mine about a month back.

I have been using a laptop keyboard for the past week, minimal problems. The difference? An Aeron chair. The difference is incredible.