Professor Elam

Weekend Sept 22 2012

The latest Eva Peron wannabe, President Kirchner, had adopted policies which have brought the Argentine Economy to a dead halt. The Socialist fervor that has done the same for Venezuela has gone South. 

Couple this with the 3.5 year low in the Shanghai Index 

President Hollande in France is working a similar disaster.  Portugal revolts at the idea of further austerity. The economies across North Africa weren't much but they are less now. The WSJ Weekend reports that  Pension Crisis Looms across the state Despite Cuts. 

Here semi conductor stocks are dropping. The Dow Utilities and Transports have not confirmed the new high in the industrials. The pool of those simply giving up looking for work grows. Forty Seven Million are on food stamps, and this is at Dow 13,000+. Let the Dow drop three thousand and see what happens. 

All of which is to say, this is the world that awaits your graduation. I suggest you study cost volume profit and break even closely, you may be working for yourself whether you want to or not.