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Friday, October 7, 2011

Anthony Ricigliano Blog - The Evidence Rolls In

Anthony Ricigliano - Anthony Ricigliano News and Advice: Within days of each other, two extreme events occurred on opposite sides of the planet; the 2000 mile wide snowstorm that saw 25 foot waves in Lake Michigan and a monster cyclone that smacked into Australia. It increasingly appears that 200 years of burning coal, oil and gas and dumping their carbon byproduct into the atmosphere is now bringing the chickens home to roost.

The planet has always had extreme events, but what makes them extreme is the fact that they are rare. The change that is occurring before our eyes is that extreme is actually becoming the new normal. In 2010, 19 nations set new all-time temperature records. The 19 new records was also a record. While Big Oil and Big Coal may be denying it, Munich Re, the biggest insurance company on earth, summed up recent events with this clinical phrase: "The high number of weather-related natural catastrophes and record temperatures both globally and in different regions of the world provide further indications of advancing climate change." In the case of Munich Re, it’s hard to deny something that seems to be taking money out of your pocket on a weekly basis.

The common perception of global warming is that the Earth will turn into a massive desert. While that may be true in some areas, a warmer atmosphere can also hold more water vapor. With studies showing that the warmer atmosphere is 4 percent moister than it was 40 years ago, the stage is also set for massive storms which bring record breaking levels of rain and snow. In this light, it’s fascinating to watch global warming deniers gleefully stating that all this rain and snow is actually proof of global cooling. If you unfamiliar with this, you’re apparently not watching Fox News.

According to studies, atmospheric temperatures have been raised by one degree, which may not sound like a lot. Unfortunately, atmospheric warming tends to magnify other temperatures, like those in the oceans. This magnification has caused the Atlantic current, which flows into the Arctic, to increase by over 10%. This has been enough to melt the sea ice in the Arctic. Without dramatic action to reduce the use of fossil fuel, the popular consensus is that atmospheric temperatures will increase by five degrees by the end of the century. Considering that a one degree increase has melted the Arctic, what will be happening on planet Earth at five degrees warmer?
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Wednesday, October 5, 2011

Anthony Riciglaino News - Laissez Faire in Hi Tech by Anthony Ricigliano

Anthony Ricigliano - Latest Anthony Ricigliano News and Advice:
With an economy burdened by a slow recovery from the great recession and the government hamstrung by skyrocketing deficits, the suggested solutions for getting us back on track seem to be coming from all directions. The thing is, the answer for hi-tech lies in the same model it has operated on for the last few decades, not a new plan based on theoretical economics.

This model is based purely on building the best mousetrap possible, and if there is intense competition, so be it. Using this model, U.S. companies kept high value talent in-house and outsourced the lower value skill sets. In this model, product designers would stay in-house while tasks like assembly would be outsourced.  
 
The environment in hi-tech has always been one of high risk and high reward with promising companies attracting funding from venture capital firms and the like. Successful companies reaped huge rewards as they either went public or were acquired by other hi-tech companies. This bred an environment that encouraged risk taking with rewards that reached into the billions of dollars.

The highly competitive nature of the field meant that there were losers in the process as well. For the uninitiated, the industry felt like it was made up of parts from the Wild West combined with a healthy serving of anarchy. The system worked however, enabling start ups to get to market and then compete and win against slower moving competitors.

The foundation of this model is still basically intact, but the recession and credit crunch have tamed the industry to an extent. With capital more difficult to come by, the appetite for risk has been muted as well. The financial crisis has changed the political winds as well with a seeming preference to focus resources on past industries as opposed to advancing tomorrow’s technology winners.

At this point, the best thing that can happen is for small innovative companies with great products to rack up a few “wins” to start re-building that appetite for risk which will in turn start bringing capital back to market.

It’s quite possible that the environment could remain somewhat muted as confidence is rebuilt in the industry but once it begins building momentum money will surely start flowing back in. America has the talent, the capital, and the guts to innovate our way back in hi-tech. As soon as the industry is being compared to the Wild West again we’ll know we’re back in full swing.


By Anthony Ricigliano