The Latest on the State Budget; Bailout Update; Cell Phone use and Cancer Risk in Children; A Culture of Candor
The Latest on the State Budget
Governor Schwarzenegger signed the state budget yesterday after an 85 day impasse with legislators in Sacramento. It was the longest stalemate in California history. Though the governor calls the budget a victory, having refused a previous proposal, the many cuts to state-funded programs is a source of concern among the democratic legislature. The budget is $68 million larger than last year's, and also allows more for California's rainy day fund.
Bailout Update
The FBI is investigating 26 lending firms for fraud in the wake of a $700 billion Wall Street bailout proposal from Washington. Among the firms under investigation are Fannie Mae, Freddie Mac, Lehman Brothers and AIG. But despite growing skepticism among investors in a sliding market, Warren Buffet sees opportunity. The world's richest man invested $5 billion in Goldman Sachs late Tuesday. Buffet backs Treasury Secretary Henry Paulson's call for Federal relief, calling it "absolutely necessary" and saying there is no Plan B.
Cell Phone use and Cancer Risk in Children
A new study has parents worried about possible dangers of too much cell phone use by their kids. So far, research has been mixed on the subject, but the new study out of Sweden found that kids and teens that use cell phones are 5 times more likely to develop brain cancer. Still, the FDA and the American Cancer Society maintain that cell phone use by children is safe. Larry talks with experts on both sides and takes calls from listeners.
A Culture of Candor
Sixteen years ago, engineers identified a problem with the O-rings on the booster rockets of the space shuttle. However, because of a NASA culture that pushed flight schedules over risk, their warnings went unheeded. Then in 2003, virtually the same thing happened when whistle blowers warned of the danger of falling insulation damaging the heat shield tiles...and seven more astronauts died in Columbia. Why is it so hard to maintain a culture of candor, where frank speech is encouraged and listened to? In their book "Transparency, How Leaders Create a Culture of Candor" (Jossey-Bass from A Wiley Imprint, San Francisco, 2008), writers Warren Bennis, Daniel Goleman and James O'Toole look at the sometimes life-and-death leadership challenges of maintaining transparency in a bureaucracy. Larry talks to one of the writers, Warren Bennis.