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By Jason Stipp | 02-18-2011 04:00 PM

Five Presidential Parallels in the Market

Presidents past and present make their way into the Friday Five ahead of Monday's holiday.

Jason Stipp: I'm Jason Stipp for Morningstar and welcome to the Friday Five.

Ahead of Monday's market holiday, Morningstar markets editor Jeremy Glaser is feeling especially in the spirit. He is here today with five presidential tales from the market.

Jeremy thanks for joining me.

Jeremy Glaser: You are welcome Jason.

Stipp: So what do you have for the Friday Five this week?

Glaser: We'll take a look at what would happen if George Washington cut down the apple tree. Why presidential biographies aren't flying of the shelf anymore. What Woodrow Wilson would think of the Federal Reserve. At Obama's budget. And a sneak peak at who could be our future president.

Stipp: So Jeremy, George Washington famously cut down that cheery tree. If it had been an apple tree there might have been some repercussions for him based on some news this week.

Glaser: Well, he may have had to give 30% of whatever he could make from chopping down that tree to Steve Jobs.

Apple announced this week that they're changing some of the terms and conditions of their App Store. So before, someone like Amazon could sell Kindle books through the mobile browser and Safari and not have to give a cut of those proceeds to Apple, they're now going to have to give 30% of all those sales of things that are sold through the App Store in App purchases directly to Apple.

This is a big change and could be a potential problem for Apple in the future if a lot of content providers decide that they don't want to give this big cut to them. If you are the publisher of a big magazine, you necessarily probably want to sell electronic editions, but you don't want to give up so much of that revenue and give up so much control of your subscriber base.

Google came out and is probably going to offer a very similar service on the Android platform, but not take that big cut. I think certainly to tell the truth, like George Washington always did, this could be a big problem for them coming forward.

Stipp: So more and more people, when they are getting things on their mobile devices, books are one of those things that they are getting. We saw some repercussions of that today in the brick and mortar business.

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