Emerging To …

By |2016-11-17T16:10:08+00:00September 10th, 2015|Categories: Global Market Update|Tags: , , |

Emerging From … What’s happening with emerging economies? Country size weighted by projected population in 2050. Source: Worldmapper.org It wasn’t supposed to be this way. The developing economies were supposed to lead the markets higher. The combination of population growth and development economics should have provided a turbo-shot to older, mature, slow-growing developed economies. Bringing subsistence farmers into cities to work in factories has been a time-honored development formula. Increased productivity raises profits and provides higher wages, [...]

Playing for the Big Green

By |2016-11-17T17:18:25+00:00May 31st, 2012|Categories: Global Market Update|Tags: , , |

Playing for the Big Green “Pay to Play” is a pernicious system. Some nonprofits use their investment portfolios as fundraising tools. Periodically, the nonprofit asks investment management firms to submit proposals on how they would manage a portion or all of the organization’s investments, and what they would charge. When the proposals are evaluated, the nonprofit also examines the record of charitable contributions they have received. Unless a manager is on the list of the organization’s donors (they “pay”), [...]

Toxic Secrecy

By |2016-11-17T17:18:52+00:00May 18th, 2012|Categories: Global Market Update|Tags: , , |

Usually it’s a good idea to keep your mouth shut. But not always.Last year, Brian Dunn, the newly installed CEO of Best Buy, developed a close personal relationship with a junior female worker. This kind of thing is bad for company morale. Among other things, it’s hard to oversee someone who is chummy with the new Chief. The Chairman and founder, Richard Schulze, was informed about it and confronted Mr. Dunn. When Dunn denied the allegations, Schulze [...]

Counting on Trouble (Part 3)

By |2014-12-22T15:57:15+00:00November 17th, 2011|Categories: Global Market Update|Tags: , , , |

So how do we fix accounting? Someone once said that free elections are meaningless as long as the politicians control who counts the votes. In the same way, accounting reform is meaningless as long as management controls the accountants. At present, audited financials are the responsibility of the firm. You can’t list a […]