A few months back, the mantel of pessimism was starting to creep up the stairs. Hedge Fund Managers, politicians, The Euro Zone, the Arab upheaval, the banking crisis, Greece, and the housing market. Recession was called upon to give its blessing once again.
The current indicators were raising the flag of a shift instead of another slowdown. Macro observers have pointed at this phenomenon for the last few years. The BRIC have been suffering a slowdown in GDP growth even though they were the engine that dragged the economy out of the crisis.
Morgan Stanley Emerging Markets predicts it is in places like Indonesia, Philippines, and Nigeria that growth have been outpacing the usual engines. But these markets are not sufficient to propel the world economy one penny.
Among others: Czech Republic, South Korea, Turkey, Poland and Thailand.
There seems to be a new dawn with the US housing market finally up and walking together with the European Union stumbling along after containing and "Regionalizing" Spanish banks. But the American dream is still referred to as "In Peril".
Tuesday, January 29, 2013
Saturday, January 26, 2013
SOX IT
Slowly IT is finally digesting the power of governance. From contracts on installment to governance.
Systems are created under stress, and the ones who survive are the ones who can withstand change. There is no other way to accommodate what comes your way than by being able to accommodate it.
IT lost its transparency by the sale of systems and roles without a perpetuity plan. They are unable to obtain the right information. The ones that couldn't, went out of business already and their brands have been forgotten.
This is simple math. A corporation is the most efficient way to expand, obtain capital, and its entity status gives it the legal right to survive. A drug dealer is better off going public if he can establish internal controls, and a heavy management layer. If he is not able, he is better off staying private. Dell is trying to take his own company private.
Technology companies lost the ability to run a corporation. They lost the ability to read their business. Best Buy and Dell decision to go private is a sign that they found the actual cause.
Systems are created under stress, and the ones who survive are the ones who can withstand change. There is no other way to accommodate what comes your way than by being able to accommodate it.
IT lost its transparency by the sale of systems and roles without a perpetuity plan. They are unable to obtain the right information. The ones that couldn't, went out of business already and their brands have been forgotten.
This is simple math. A corporation is the most efficient way to expand, obtain capital, and its entity status gives it the legal right to survive. A drug dealer is better off going public if he can establish internal controls, and a heavy management layer. If he is not able, he is better off staying private. Dell is trying to take his own company private.
Technology companies lost the ability to run a corporation. They lost the ability to read their business. Best Buy and Dell decision to go private is a sign that they found the actual cause.
Monday, January 21, 2013
IRS looses lawsuit regulating Tax Accountants
The IRS had increased the requirements for tax accountants. A federal judge struck down the requirements. The IRS does not have authority to regulate the profession.
It might sound like a naive decision for many, but the profession is an interesting one and this is a big win. Tax Law and its written text is the ruler of the profession not the IRS.
A US citizen has a God given right to his property and his own money, and the written text is usually expanded in court challenging the IRS. Allowing the IRS to regulate the profession puts them in a dangerous position like striking down any adversarial point of view. Moreover, the IRS would be inheriting rights only given to Congress to write or maintain the Law. At the end, Congress delegates the writing of the Law to the Accounting bodies - not the IRS.
And so it is.
The arguments might continue through the courts, but it is becoming increasingly rare to at least feel a weaken wind of freedom in a land that is loosing it.
It might sound like a naive decision for many, but the profession is an interesting one and this is a big win. Tax Law and its written text is the ruler of the profession not the IRS.
A US citizen has a God given right to his property and his own money, and the written text is usually expanded in court challenging the IRS. Allowing the IRS to regulate the profession puts them in a dangerous position like striking down any adversarial point of view. Moreover, the IRS would be inheriting rights only given to Congress to write or maintain the Law. At the end, Congress delegates the writing of the Law to the Accounting bodies - not the IRS.
And so it is.
The arguments might continue through the courts, but it is becoming increasingly rare to at least feel a weaken wind of freedom in a land that is loosing it.
Monday, January 14, 2013
300
There are only 300 Peloponnesian souls left guarding the Thermopylae.
Guarded by stone columns The New York Stock Exchange resembles more the New York City of "I am Legend" than what its name stands for.
300 traders remain from 3,000 in 2007. The last guard protecting against the turbulent waters of automated trading. The last ones left that will pay for mistakes with their own paychecks.
From now on, any personal money lost will have to be battled by a lawsuit if you can afford it. Against any common sense, a glitch in the system is a reasonable excuse beyond any reasonable doubt. Imperfection is after all Only a Human Quality.
There won't be anyone down there, in the Pit, reading the eyes of adversaries trying to do good by the client.
The legacy of books written on how Hedge Funds masters kept the pulse of the market by personal and direct communication to the individual traders has vanished.
It is the world of PIMCO. Only the ones who can read the macro waves will be able to keep their change. And then again, the world is back from the hands of the Titans. The Fire has been restored.
Guarded by stone columns The New York Stock Exchange resembles more the New York City of "I am Legend" than what its name stands for.
300 traders remain from 3,000 in 2007. The last guard protecting against the turbulent waters of automated trading. The last ones left that will pay for mistakes with their own paychecks.
From now on, any personal money lost will have to be battled by a lawsuit if you can afford it. Against any common sense, a glitch in the system is a reasonable excuse beyond any reasonable doubt. Imperfection is after all Only a Human Quality.
There won't be anyone down there, in the Pit, reading the eyes of adversaries trying to do good by the client.
The legacy of books written on how Hedge Funds masters kept the pulse of the market by personal and direct communication to the individual traders has vanished.
It is the world of PIMCO. Only the ones who can read the macro waves will be able to keep their change. And then again, the world is back from the hands of the Titans. The Fire has been restored.
No Impact
News are sporadically showing up demonstrating how automated trading has no impact in our lives.
It should be left alone given their minimal impact. There is no need for regulation. The industry can self regulate itself is the obvious conclusion.
It should be left alone given their minimal impact. There is no need for regulation. The industry can self regulate itself is the obvious conclusion.
Saturday, January 5, 2013
Ethos
The recent dispute with an executive at Hathaway highlights the shady waters every finance person finds himself in today's world.
Speaking from experience, every single conversation with a client is an opportunity of advisement and founding of strong relationships while the fast pace of the law and its interpretation is open to any point of view.
An executive bought stock on a chemical company. Months later, he decided to recommend an investment in the company to Buffet. They could be two separate and independent events. In this case, the possible acquisition of the company by Berkshire Hathaway can make his initial investment seem like a clear insider trading case.
Even though the SEC is not following up suit, the executive's actions are serious enough to cause a clash an a resignation even when no ill intended act was committed.
Speaking from experience, every single conversation with a client is an opportunity of advisement and founding of strong relationships while the fast pace of the law and its interpretation is open to any point of view.
An executive bought stock on a chemical company. Months later, he decided to recommend an investment in the company to Buffet. They could be two separate and independent events. In this case, the possible acquisition of the company by Berkshire Hathaway can make his initial investment seem like a clear insider trading case.
Even though the SEC is not following up suit, the executive's actions are serious enough to cause a clash an a resignation even when no ill intended act was committed.
Random Ticks
Apple tablet market share decreased from 65% to 50.1% in a quarter.
The atmosphere has 4% more vapor.
The Article Cap has decreased 50%.
Android devices in used are more than 50% of the market.
The US economy contracted 0.1% last quarter.
60% of trades are automated trades.
36% of emails were open in a mobile device.
KPMG reports 40% of technology leaders believe that Silicon Valley will be supplanted by China.
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