Thursday, January 13, 2005

Choosing my bank 

Look, this is really quite easy to understand:
  1. If you work for a newspaper and you attack an advertiser, the advertiser might wish to reconsider where to take his advertising dollars.
  2. If the advertiser makes a public point of pulling the ad dollars, those who support the newspaper journalist can certainly stop doing business with that advertiser.
  3. If the newspaper's editors don't really care, neither will the newspaper writer.
  4. $250k in ad revenue is probably more a problem to a newspaper than $77.03 in some blogger's checking account. The importance of the money to them is the size of the deposit times the interest margin, if anyone cares. Interest margin for a place like TCF is probably about 3%.
  5. This has nothing to do with the freedom of the press or free speech; it's called the sanctity of contracts and the market. And the principal-agent problem.
That said, TCF can expect me to open an account with them next week.

Mitch has more.