Accounting & Investing Info for San Antonio A & M
Tuesday June 28, 2011
Goldman Sachs is running the country via their chosen politicians now occupying the White House.
This is nothing new but it has raised the sheer chutzpah to a new level.
Note, harsh language, and for good reason in this audio clip.
Tuesday June 28, 2011
Do you know Gretchen Morgenson? She is a financial journalist now writing for the NY Times. Her latest endeavor is about the meltdown entitled Reckless Endangerment..
She and co-author Joshua Rosner focus on Fannie Mae and its head James Johnson in the 1990s. The government clearly loaned money to people that could not afford homes. This inflated home prices making money for everyone in the game. That is until the home owners stopped paying and the game ended. We are not out of the woods yet. I suspect we should make several of these books required reading.
I am reading Mike Lewis' The Big Short.
Monday June 27, 2011
The LA Dodgers filed for Chapter 11 Bankruptcy.
Apparently the new owner never had the money to really fund the team and is now mired in a contentious divorce.
And this team does not have a mega expensive stadium like many others. While this one seems to have owner issues I have to wonder how the rest will do in a downturn with their expensive players and stadiums. And that is across the different sports.
Sunday June 26, 2011
This is an interesting idea. Fast Company magazine held a conference and had attendees answer a simple question about leadership, marketing, innovation, etc.
They call it 30 Second MBA.
I watched several of the clips. What I want you to observe is not so much what they say as the mechanics of recording the event. If the person is not wearing a microphone it is hard to hear them. If the lighting is not uniform the appear to be half in the dark. It was difficult to understand them, it would have been much better to have a script crawl at the bottom se we could read what they said; in some cases there was background noise going on.
This also highlights what I have said in class. You need to be ready to speak on a subject you have mastered on a moment's notice. What if someone asked for your favorite quote and you did not have one? Ditto your favorite book, song, movie, inspiration, etc.
I have suggested we need a proper audio video room at the new campus for just such a purpose.
Sunday June 26, 2011
Here is a great video on how companies move off shore to reduce their exposure to the US 35% tax rate.
Another example of terrible US tax policy. This is why there are billions in US corporate cash offshore. As the video concludes, nobody pays the 35% tax rate, they hire legions of accountants to avoid doing that. So the rate as most high rates do, just encourages creative tax avoidance schemes to avoid the tax.
Sunday June 26, 2011
To Die in Mexico is an up close look at the mayhem going on just south of our Border. The author, John Gibler, lives in Mexico. He blames the US and Mexican governments for most of the problem as well as the ill founded drug policy which has created the narco gangs.
He estimates the net profits in drugs at between $30-60 billion or about what the oil income is worth.
We have a failed state offering little future for some 120 Million people. This will not work and the problem needs to be addressed immediately. Meanwhile we are spending billions on Afghanistan which I doubt will be any different once we leave than when we arrived.
Please click and read the review.
Wed June 22, 2011
My favorite retail analyst is Howard Davidowtiz. in this clip he analyzes the differences in JCP and Apple.
This is pretty much what I thought. JC Penny is nothing like Apple. Apple has a few products that virtually no one else sells. JCP sells what everyone else sells. What as Ron Johnson thinking? Sure the Apple stores look modern and slick but people want the products. One can buy what JCP sells at multiple other locations.
Wed June 22, 2011
We currently have a Management Discussion and Analysis in annual reports. Now the PCAOB suggests
a Auditor Discussion and Analysis. This idea would have auditors expressing opinions of financial management of the firm.
It is hard to me to see how this will work when the firm employs the auditor. As the article says, it is pass fail at the moment, the auditor says the statements fairly reflect the firm position or they don't.
This would be like asking your best friend to analyze your hair do or wardrobe, how long would that friendship last?
I am going to suggest this for an article on the discussion board.
Tuesday June 21, 2011
Chinese ENergy Company CNOOC is paying $2.2 billion for a one third stake in assets.
Apparently they are interested in the Eagle Ford play south of San Antonio among other interests. This bears watching. Recall our post on Halliburton moving into South San Antonio to work this area as well.
Monday June 20, 2011
Henry Blodget has scripted a fine guide to cutting thru the BS of the usual commentator on CNBC,Bloomberg, Fox Business
Here are his sixteen phrases which sound great and mean nothing.
Professor Elam 