April 14 2021
Coinbase becomes the most valuable exchange in America.
Its value is over $100 B, eclipsing the CME worth $74 B.
This is more evidence of a frothy market.
Professor Elam
Accounting & Investing Info for San Antonio A & M
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Professor Elam
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Professor Elam
Wed April 14, 2021
Morgan and Goldman exceed expectations.
the article credits coming out of covid, that is typical of trying to tie an external event to something in the market.
As we reported both firms dumped their Archegos holdings to the disadvantage of the banks which did not/
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Professor Elam
Wed April 14 2021
The architect of the biggest Ponzi Scheme in history has died.
He managed to dodge regulators for years given his knowledge of how they worked.
He never actually made a trade simply depositing money from later investors and paying off earlier investors.
The collapse do markets ij 2009 resulted in a demand for returns and he was of course unable to do thqat.
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Professor Elam
Monday April 12, 2021
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Professor Elam
Weekend April; 11 2021
WE are studying inventory in ACCT 5327. Boy are things changing, check ou these video and articles on robotic inventory management.
Articles
notice this site is http://www.roboticsandauytomationnews.com
https://roboticsandautomationnews.com/category/features/
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Professor Elam
Friday April 9 2021
What Could Go Wrong?
Corporations don’t pay taxes, they either pass them forward in higher prices or backward in lower wages.
Janet Yellen as Professor circa 1992
Today Janet heralds the Trump tax cuts as the ‘international race to the bottom.’ That would be lower taxes and less dollars for politicians to spend on vote buying schemes. And so Janet is calling for an international higher corporate tax rate, 28% for the USA. In fact, corporations willingly pay lower taxes and produce more resulting in higher tax income. In legal circles this is known as price fixing and conviction carries a jail term. A few years back Ireland created a stampeded to re-locate corporate headquarters there to enjoy their low 12.5% corporate tax rate.
Yet seemingly optimism abounds. Markets have reached new highs (still arcing from reduced taxes and regulations), and Jamie Dimon at Chase sees nothing but good news ahead. The markets did hit new highs (Russell 2000 excepted) but momentum seems to have slowed this past week. Before we declare Happy Days are Here Again, a few things need to improve first.
Team Biden seems determined to raise corporate taxes from 21% to 28%, a 33% increase. Plans to tax law abiding gun owners will do nothing to stem the rise in violent crime in major Democrat run cities. New York now has the highest taxes in America.
Immigrants pour across what used to be the US Southern Border. The brother of the President of Honduras was convicted of smuggling 185 tons of cocaine to the US. US drug users have destroyed entire countries to the south.
Financial blow-ups including Wirecard, Luckin, and Archegos have occurred. Swiss bankers used to be admired for secrecy and conservative lending. Now Credit Suisse has lost billions on a swap trade.
Emerging economies are struggling. In the last year interest rates for Brazil’s (always the country of the future) Treasury debt soared from 6.5% to 9.5%. Tourism lags world-wide due to the pandemic.
The new highs in the markets reflect a ‘crowded trade’ in high tech stocks. New highs are receding and new lows are expanding.
Commercial real estate rent rates are plummeting. Companies have discovered work from home and are not likely to return to downtown. Ditto for shopping malls.
I have only driven about 2,000 miles in the last six months. Electric or otherwise, I don’t see that less miles driven stimulates car sales here or anywhere else.
Education remains in flux. Teacher unions keep public schools closed. At home schooling is expanding at far less cost than its public equivalent, the former without the layers of bureaucracy of the latter. Union refusal to return to work is the biggest boom to home schooling ever. And the $1.5 trillion in Higher Ed debt remains with us.
Restaurants, live performances, and cruise lines remain iffy situations. Will help come before they all go out of business?
I’m not predicting trouble, just noticing we already have plenty on tap.
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Professor Elam
Friday April 9 2021
My friends at the Socionomics Institute asked what I would be watching this year in terms of changing social mood and outcomes.
My answer was commercial office space. I am stunned so much is being built right here in north SA. And now, firms are exiting downtown office space at a rapid clip.
The decline in rents is deflationary, and what does one do with a near empty downtown office building?
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Professor Elam
Wednesday April 7 2021
The iconic Tower Life Building ( octagonal with a green roof and the flagpole down town) and the Majestic Theater were planned in the late 1920s. The Tower Life building was to be the first of a series of down town developments. The Majestic openned in the summer of 1929. And of course the crash occurred that October. All the other projects in the Tower Life complex were cancelled. We are now in a similar situation. The markets are at all time highs, now as then. Optimism abounds. Each month the stock market makes a new high. Speculation is rampant, risky option purchases are setting records for volume and dollars spent.
What could go wrong?
Big plans are made at market tops and this is no different than 1928. Yes San Antonio is has a very diverse economy. But
Team Biden plans a massive tax increase
China pours ships into the South China Sea
the USS Teddy Roosevelt steams (nukes?) there now
Russia masses on the Ukraine Border
Interest rates are up
What could go wrong?
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Professor Elam
Wednesday April 7 2021
Exam Overview
The Certified Information Technology Professional (CITP ®) credential was established for CPAs with the unique ability to bridge between business and technology while meeting the strict requirements for a CPA license, as well as additional training and experience in IT assurance, risk, security and privacy, analytics and technology. In order to obtain the credential, you must pass the CITP Exam. The exam requirement is waived for candidates who have passed ISACA’s Certified Information Systems Auditor (CISA®) certification exam.
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Professor Elam
Monday April 5, 2021
Tsy Secy Yellen will call for all nations to have a minimum (same) global corp tax rate.
This of courses allows Biden to raise rates without fear some sharp country, like Ireland, will undercut him and draw corporate headquarters to Ireland.
Will the other nations be this stupid?
Here is a resurrected Bill Clinton phrase, we don't tax and spend we invest.
"It is about making sure that governments have stable tax systems that raise sufficient revenue to invest in essential public goods and respond to crises, and that all citizens fairly share the burden of financing government."
the govt did not invent anything that is an inmvestment, the govt simply thinks taking from the creators will someho stimulate something, it won't.
See op ed in today's WSJ, the Dems will never get there on climate change, they have too many regulations and decry nuclear and natural gas.
Professor Elam 