Urb Buzz - Reader Response

Thank you my upside down friend for your commentary about the Lindsey Lohan (Lilo) to this post -> http://urbanomics.blogspot.com/2007/07/urb-buzz-july-07.html. I love to debate so here we go:

First you say Lilo is not risky or unreliable. Wrong, she is risky because the cops found COKE on her and all she could say was that she borrowed someone's jeans and that's why drugs were found. Remind me to accidently borrow your jeans when you win the lottery. Unreliable, again she get the top prize because a movie has been put on hold because guess what...Lilo is a train wreck. So yes, before I jump ship I asked myself the same two questions you posed:

1. Does the person still make money - Investors evaluate the time value of money. Roll with me homey...the possibility Lilo will continue to make top dollar in the future is shrinking rapidly.

2. Will her actions affect future profits - Yes, when movie investors - big banks that fund movies, insurance companies that fund movies, and movie goers realize that Lilo is a train wreck the money stops flowing. And supposedly some of the insurance companies are pulling the plug...I know I would.

Finally, I do agree with you and most actors get a second, third and fourth chance...but like stock market crashes people do not quickly forget when they've been burned. And no CEO's drunk driving will not cause a stock to dive, but remember these incidents:

1. Martha Stewart - stock tanks
2. Rigas Family scandal - Adelphia telecommunication company split in pieces and sold
Honorable Mention - World Wrestling Entertainment, traded a little lower when people actually thought Vince McMahon died in one of WWE crazy televised stunts

Notice, big investors are pulling the plug on Michael Vick, Rawlings just canned him, Nike and Reekbok put his products on hold...and he hasn't even been indicted. Why, because the RISK is just to HIGH

get ur URB on

Urb Buzz --- July '07

Welcome to that ringing that won't leave your ear. I know you think I am talking about those annoying cicadas that were buzzing everywhere you went, but that buzz is Urbanomics in ya ear. The buzz combines my principles of using urbanomics to topics that are to hard to understand.

Topic 1 - Risk vs Reward

I am surprised myself that Lindsey Lohan makes my blog, but urbanomically I have to say something. What oh what is this child doing and why doesn't someone get her some real help. Simply the risk here doesn't match the rewards. If Lindsay was a stock we'd issue a huge sell at this point. Like the stock market you invest in something that is reliable and will appreciate over time. Lohan is far from reliable and she is way to risky. What's unfortunate is this chick is out there still driving and could hurt herself and even worse innocent people out there on the streets. But remember in the stock market a company can keep going as long as it's got the cash to do business. So what do we recommend her at the Urb...pull the plug. Yes its time for all of the parties involved to pull the funds from behind this underperforming stock we know as Lohan. Movie deals, endorsements, product lines, etc need to pick up their tents and move on. Many people forgave the first incident but the second time was a slap in the face. There are outcries against another celebrity and corporate america is almost ready to pull the plug (Nike has put his shoe on hold & he has be ordered not to report to training camp)...yep you guessed it Michael Vick. How about pulling the plug on Lohan's new movie, ohhh wait there may be too much money involved. Time to treat all these raggedy stars the same and sell they hype!

Topic 2 - Movie Night?

Netflix just turned "R" rated. Yes ladies and gents, all you movies watchers probably knew this before I did but I didn't pay attention to the signs. How about the fact that my sister used to rent through Netflix, but I noticed recently a switch back to Blockbuster. Why, because Blockbuster decided to give the farm away and you can rent movies online, but return them to stores for a speedy drop off. Genius move right, not exactly...Blockbuster has to be bleeding cash to pull this strategy off. But until then Netflix will be under pressure because margins are probably razor thin (not to mention that the dummies don't charge you for shipping). And to top if off, Netflix's website was down for most of today...great move when your customers can only go to one place to ORDER movies.