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BULLS & BEARS: Fed policies encourage post-bubble hangovers

Economists teach us that too much money chasing too few goods causes inflation. As consumers, this supply-demand imbalance leads to rising prices on the everyday items we purchase. A similar phenomenon can occur in financial assets. Too much money chasing stocks, bonds and real estate can create financial asset inflation. Pension funds, institutions and wellheeled individuals are throwing money into “alternative investments” in the hopes of earning high returns. There are now an estimated 8,000 hedge funds that manage more…

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Charitable sector rides on road to recovery: Giving makes big jump for the first time since 2000

Americans gave more money to charity last year than ever before, signaling a return to the pre-9/11 philanthropic heyday. Contributions were up 5 percent, to $248.5 billion-the first significant increase after adjusting for inflation since 2000. “Things have been kind of flat,” said Eugene Tempel, executive director at the Center on Philanthropy at Indiana University. “This … tells us things are getting a little stronger. This is a good sign.” Researchers at the center compile data each year and write…

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ECONOMIC ANALYSIS: Until Indiana diversifies, economy will struggle

Sure, General Motors Corp. is in trouble, and quite a few Indiana communities are directly in harm’s way. The headlines say it all. Plant closings-above and beyond those already planned-are on the way. GM bonds are rated as junk. Its market share is at an historic low. And it’s discounting just about everything on the lot. For a company that has been the No. 1 automaker in the world for four generations, its recent stumbles have to be humbling. Pressed…

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Precedent plans spec office: Building signals improvement in north-suburban market

The Precedent Cos. is preparing to build a 100,000-square-foot office building in its namesake office park near 96th Street and Keystone Avenue, several local real estate experts said, further evidence of the north-suburban market’s recovery. The building would mark the first new speculative office construction in the park since the mid-1990s, just before Indianapolis-based Precedent sold the park’s 19 buildings with 1.1 million square feet of office space to Philadelphia-based Berwind Property Group Inc. in 1998. That sale didn’t include…

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Community banks struggle with regulatory demands: Sarbanes-Oxley, Banking Security Act prove costly

Who can blame small community banks for feeling boxed in? “The world has changed,” said Jerry Engle, president and CEO of Greenwoodbased First Bank. “I guess we’ll have to get used to it.” Far and away, it’s the increasing cost of regulatory compliance that keeps community bankers tossing and turning at night. In recent months, the Independent Community Bankers of America, a small-bank advocacy group based in Washington, D.C., has stepped up its ongoing campaign against additional regulation by asking…

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INVESTING: With oil prices sky high, Hoosier ethanol knows no limit

Oil prices are acting stubborn by staying above $50 a barrel. Our economy is adjusting to these high gas prices, but every consumer in America would like to see some kind of solution. In August, Congress is expected to vote on an energy bill that has some quences for us. The mainstream media will spend most of the time talking about the drilling rights in Alaska, but there is a shorter-term and higher-impact portion of the bill that can offer…

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ECONOMIC ANALYSIS Patrick Barkey: Though state revenue rises, property tax hikes lurking

Is there such a thing as good news about taxes? Perhaps not. Muscles tense and faces frown at the mere sound of that three-letter word. But you should know there is a quiet tax increase occurring in the state that few, if any, of its residents are complaining about. We’re all paying more in taxes to the state-quite a bit more, actually-and the governor and the General Assembly have little to do with it. What’s happening, of course, is that…

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VOICES FROM THE INDUSTRY: Indiana must not let TDL opportunities elude its grasp

Unlike some other Hoosier economic initiatives, much of the required infrastructure to rapidly advance TDL into significant growth is already in place. More Interstate highways cross the state An economic development analyst determining the physical advantages of Indiana might initially be challenged. Indiana has no oceans. No mountains. No temperate climate. But the Hoosier state does possess one singular unmatched physical plus: It is the state geographically closest to the bulk of most U.S. major markets. For more than a…

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VIEWPOINT: Arts are a good investment for business

This summer, there are two red-letter days for the arts and cultural scene as well as our city and state: the official opening of the new home of the Herron School of Art on the IUPUI campus, which was set for June 3, and the dedication of the Indianapolis Art Center’s ARTSPARK Aug. 21. These events are only two of the many activities in 2005 that will help position Indianapolis as an arts and cultural destination, a goal set by…

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Network Engineering Inc.: Computer firm remains flexible Owner says diversifying keeps company nimble

He started the original version of his business back in 1984, fresh out of college. One Internet, one dot-com boom, one Y2K and one dot-com crash later, he’s still in business. Spilker is president of Network Engineering Inc., which is essentially a spin-off of his original company, Information Engineering Inc. A lifelong Indianapolis resident, he graduated from Purdue University with a degree in computer technology. As soon as he graduated, he started Information Engineering because he wanted to run things…

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Interns follow unique paths: Some internships offer more freedom, creativity

Internships can offer valuable learning experiences for college students looking to land the ideal job following graduation. But few provide an opportunity quite like the one extended by the Indianapolis Cultural Development Commission in its quest to market the city as a cultural destination. By summer’s end, three undergrads will have traipsed the Hoosier state visiting fairs and festivals in a van decorated with the large, red arrow becoming synonymous with the promotional campaign. Whether their itinerary includes stops at…

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Trade zone gets bigger: Expansion should help Duke, Anderson lure tenants who export, import goods

An expansion of Indianapolis’ foreign trade zone to include Duke Realty Corp.’s west-side industrial parks might not result in a flood of new tenants for the local developer, but it’s expected to help economic development officials lure firms that ship goods by truck and rail. Officials of Duke and central Indiana economic development agencies were to announce on June 3 that the local foreign trade zone has been expanded from 5,500 acres around the Indianapolis International Airport to 7,100 acres….

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A ‘little’ oil boom: More drilling expected in state as prices stay near record

“There is increased drilling. There’s a lot of broke-ass oil producers down here that are experiencing a little boom,” said Andrews, president of Vincennes-based Andrews Oil Properties. Oil producers like Andrews, “still driving the same Cadillac I had 15 years ago,” know bet- ter than to entertain fantasies of striking it rich, however. Indiana oil production has been on the wane since a 12.6-million-barrel peak in 1956. Last year, only 1.75 million barrels were extracted from Indiana’s sedimentary rock, according…

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Government intervention: cure is as bad as disease ECONOMIC ANALYSIS: Government intervention: cure is as bad as disease

ECONOMIC ANALYSIS Government intervention: cure is as bad as disease As you get older, you come to appreciate the old adage about doctors: They don’t actually cure you, but they do sometimes let you trade in one ailment for another. That could be said equally for almost every situation where governments intervene in the privatesector economy. The solution to a problem inevitably creates a new problem. And in some cases, the cure is worse-and longer-lived-than the disease. We have come…

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JOHN KETZENBERGER Commentary: Time is ripe to heal racing rift

Roger Penske strode alone through Gasoline Alley 90 minutes before this year’s Indy 500. With 13 wins at the Indianapolis Motor Speedway, The Captain certainly knows how to get his drivers around the famed Brickyard. In the next line of garages, a crowd of race fans and media gathered before doors numbered 12, 13, 14 and 15 where Rahal Letterman was encamped. Rookie phenom Danica Patrick arrived on a golf cart and disappeared quickly into the relative calm before the…

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VIEWPOINT: Eastern time zone is Hoosiers’ best bet

The Indiana General Assembly crusade to enact daylight-saving time legislation was legendary. The rising and falling fortunes, near-defeats and ultimate success have been well-chronicled. It turns out, however, that one battle may be over, but the fight still must go on. An amendment to the original legislation requires the General Assembly and Gov. Mitch Daniels to petition the U.S. Department of Transportation to hold hearings throughout the state. The reason: to determine what time zone (Eastern or Central) the 77…

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Anderson incubator represents ‘beginning’: Officials hope new center will help revive economy

Xtreme Alternative Defense Systems LTD is the type of high-tech company Anderson officials are coveting for their new small-business incubator, the Flagship Enterprise Center. Founded in 2002 by Pete Bitar, XADS has a contract with the U.S. Marine Corps to develop a long-range, wireless stun gun, known as the StunStrike system. The patent-pending technology delivers a non-lethal electrical current to disable a human target. The prototypes include a rifle that can fire up to 15 feet and a vehiclemounted unit…

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BULLS & BEARS: To avoid pension turmoil take the money and invest

On May 13, Tiger Woods missed a putt and, for the first time in seven years, didn’t make the cut in a PGA tournament. Tiger wasn’t so happy, but the guy who made the cut because of Tiger’s miss was delighted. Two days before Tiger’s historic miss, in a crowded Chicago courtroom, United Airlines won permission from the U.S. Bankruptcy Court to renege on some of the pension payments it owed to retirees and employees. The decision was historic, as…

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ECONOMIC ANALYSIS: With growth at both ends, job spectrum requires skill

When you study economic statistics for a living, it’s easy to lose perspective on a lot of things. Take the labor market, for instance. In any given month, millions of American workers are hired and fired, promoted, demoted and transferred. Some drop out of the labor force to raise children or to go to school, while others retire altogether or begin new careers. When the smoke clears after all those changes, the statisticians in Indiana and in Washington tally it…

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Rule changes to get scrutiny: State agencies now must consider economic impact

Indiana’s small-business owners will encounter a friendlier regulatory environment in July, when sweeping legislation takes effect requiring state agencies to consider the impact of their policies on small businesses before adopting them. House Enrolled Act 1822 should help ease the burden of what advocates consider unnecessary regulations on small businesses by requiring agencies that intend to change or adopt a rule to provide an economic-impact statement first. The statement must include a regulatory-flexibility analysis that evaluates alternative methods that could…

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