Professor Elam

Thursday May 6 2010

Today the Dow Jones Industrial Average dropped 8%, in about one hour. This time it came back, but that is exactly the sort of action that I drew on the board in Ethics class last night, a stair step down, remember?  And I pointed out that the Dow lost 89% of its value by the time it was over ushering in the Great Depression in 1932. Now do you believe it could happen again?

I have been discussing the financial discord in Europe all semester This was represented by the PIGS Portugal, Ireland Italy  Greece Spain all spending more money than they take in. This has led to a repudiation of amounts 'owed' to unionized govt workers in Greece. This week CNBC has carried video of riots including Molotov cocktails thrown at police in Greece. This is after the promised $145 B bailout, but gee that required austerity. Just this week, Mish, see sidebar for link,  reports that the San Diego City Council is suing its pension fund. CA IL NY NJ are all overspent. 

Just today I posted an article suggesting that there are more law school grads than there are law jobs. At least the kind of job  the law school grad thought he or she was borrowing to receive. Now the grads have $100K in debt and well, hi Mom, hi Dad, can I have my room back?  When I began teaching at Texas State a survey by Monster Track revealed that a large percentage of college grads moved back home once they graduated. 

At any rate, the one year recovery in stocks is probably approaching if it has not already seen, an end. Yes San Antonio is not New York. But today is a warning shot across the bow that things in the US could look a lot more like Europe. Just today I suggested a business arranging tours in Central Texas, folks will likely be staying closer to home. Yeah, no kidding….

We have talked endlessly about the importance of picking a certification and achieving it. I am quite serious. The competition for jobs at least those that will be available, will become fierce. I have made the point that you must be better read and prepared than your competition, that you should always have a business presentation ready, that you should always have your business card ready, I was not kiddding, see graph above, paste it on your refrigerator…..

I have obtained the license and have a work order to have the Gleim Review System installed on our computers and hopefully in the library which is open on the weekends. In our library now are the last two years for CPA, as well as CIA, and soon, CMA. We are quite serious in wishing you the best, attempting to provide what you need, and working with the professional community to increase our outreach on your behalf.