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Fed Balance Sheet vs. Stock Market; Will QE Cause Inflation?

MishTalk

Balanced Budget Ammendment Sign the Balanced Budget Petition. Fed Balance Sheet vs. Stock Market; Will QE Cause Inflation? Fed Balance Sheet vs. Stock Market. The risk premiums of risky securities have become unsustainably compressed in the process, and the Feds balance sheet has metastasized to $3.5 The Fed would probably show an insolvent balance sheet today if its holdings were actually marked-to-market. MISHS.

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Apple's Balance Sheet Math: Does Apple Really Have $203 Billion in Usable Cash on Hand as Widely Reported?

MishTalk

Current Liabilities Cash Much Smaller Than You Think I don't often dive into balance sheets, but did so after reading a Market-Watch opinion by Brett Arends. Apple may face even more pressure to do something productive with its $200 billion war chest instead of letting it collect dust in Ireland and other tax havens. " billion in “off-balance-sheet” liabilities. If “off-balance-sheet” is not included in my totals, then subtract another $31.5

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Consultant Ninja: A Simple Question about the Credit Markets.

Consultant Ninja

Heres my understanding of the current TARP/TARPII/PPIP/etc plans: The major "sick" banks wont lend to businesses, because their balance sheets are tied up with bad assets that they cant sell. I realize that is a gross simplification, but if the gist is right, it leads me to a simple observation: Why doesnt the government just give long-term loans to the healthy banks (building up their balance sheets) so that they can loan to businesses? Productivity. (6).

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Two-Week Price Inflation in Argentina hits 30%, US Products Lead the Way; Currency Devaluations Hit P&G Earnings

MishTalk

A tour of various supermarkets in the city of Buenos Aires, found escalating inflation is much higher in stock products, perfumery and milk. Due to devaluations in currencies like the Venezuelan bolivar, Argentine peso and Turkish lira, to name a few, the consumer product giant said that it is lowering its outlook for its full-year 2014 sales and earnings. certain P&G products — are exchanged. Price of many goods in Argentina soared in the past two weeks.

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It’s Not “Time Management.” It’s Lean.

Markovitz Consulting

In the space of two weeks, the New York Times and the Wall Street Journal both ran articles on the productivity benefits of reduced work hours. Not to be outdone, NPR reported that Microsoft Japan moved to a four-day workweek this summer while increasing productivity by 40%. Unfortunately, companies in the lean community don’t seem to take much note of, or try to copy these experiments, probably because the benefits aren’t reflected on the income statement or balance sheet.

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Rising COVID cases, falling economy

Tom Spencer

Since the start of February this year, the Fed has expanded its balance sheet by more than $2.4 To put that in context, the Fed was created in 1913, and its total balance sheet assets only reached $2.4 What does Fed balance sheet expansion mean for the US economy?

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Swiss Gold Referendum in Perspective

MishTalk

After the implementation of the EURCHF floor, gold’s share of the SNB balance sheet has fallen to 7.5% from around 30% in 2007 (top chart) [SNB Balance Sheet]. Taking the current balance sheet of 522bn CHF and spot gold prices, the requirement to hold at least 20% of assets in gold would necessitate buying 1,800 tonnes of gold over 5 years. Specifically, I question if gold production is much of a factor at all.

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Creating Leadership Trust that Inspires People

Rick Conlow

Products, the balance sheet and customers are the priority. This means better customer service, greater productivity, and increased sales. Leadership distrust is rampant today according to research. This leadership trust training video will share the antidote to that. For example, the US Congress is rated lower in trust than car salespeople. Only 15% of Americans feel our elected officials are doing a good job. Most employees don’t trust their leaders.

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Nothing Magical About 2% Inflation Target Says Bernanke

MishTalk

Others, such as Scott Sumner of Bentley University in Waltham, Massachusetts, argue that the Fed should adopt a goal for the growth of nominal gross domestic product, rather than focusing on a price index. Bernanke also made the case in his presentation for keeping the Fed’s balance sheet big in the aftermath of the financial crisis. [Is Most other major central banks have permanently large balance sheets and are able to implement monetary policy without problems,” he said.

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Human Resources Management – How to Get Started

Tom Spencer

Human resource teams are critical to the growth of a company since employees typically represent both the biggest operating expense and largest off-balance sheet asset for most businesses.

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What If Companies Managed People as Carefully as They Manage Money?

Harvard Business

Today’s executives spend a lot of time managing the balance sheet, despite the fact that it doesn’t represent their company’s scarcest resource. Based on our research , inspired employees are three times more productive than dissatisfied employees, but they are rare. Talent management Managing organizations Productivity Digital ArticleVincent Tsui for HBR.

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Create More Management Transparency

Johanna Rothman

I see the most product and program success when the various teams create transparency between them, the middle of the continuum. That's the full-product transparency. That's because the managers don't explain: Why this product. Why this product now, as opposed to any of the other work we could do. Full-product transparency is about the product , not the team. You don't need a formal program to need full product-based transparency.

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Why Financial Statements Don’t Work for Digital Companies

Harvard Business

This becomes clear when you look at a company’s two most important financial statements: the balance sheet and the income statement. For an industrial company dealing with physical assets and goods, the balance sheet presents a reasonable picture of productive assets and the income statement provides a reasonable approximation of expenses required to create shareholder value. Let’s first look at the balance sheet. steven moore for hbr.

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Customers are your ‘ace in the hole’ during uncertain times

1 to 1

Don’t throw new products and services at customers without a clear need. Before the economy shifts too much, now is the time to act carefully and build stronger ties with your customers, who are the most important assets in your balance sheets.

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US Corporations Take Huge Losses on Venezuelan Currency

MishTalk

Ford also said that it was unable to maintain normal production in Venezuela with the availability of vehicle parts constrained. Overall, foreign companies have an estimated $16 billion in outstanding dividends listed on their balance sheets that they have not been able to return to headquarters, according to Caracas-based research firm Ecoanalitica. When black markets in currencies develop, you can be 100% sure the official exchange rate is overinflated.

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Repair Regulations: Limiting Business Deductions

Women in Consulting

into office supplies, these items must now be put on the balance sheet and depreciated and tracked. All tangible property expenditures with an acquisition or production cost under the stated threshold are to be charged to the expense accounts. By: Renee Daggett In September 2013, the IRS released new rules regarding expensing repairs/supplies and depreciating assets. They are providing clarity on how you can or cannot write off purchases of equipment, tools, supplies, etc.

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10 Flaws with Mainstream Economics

Tom Spencer

For example, Amazon earned only modest profits from 2004 to 2015, choosing instead to focus on increasing market share and developing new products. Factors of production. Economics assumes that there are three main factors of production: land, labour, and capital.

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The Importance of Business Acumen for High Performance

LSA Global

How can you expect to pitch a new strategy or product if you are unable to articulate its potential revenue, costs, and return on investment? Study the Balance Sheet. With term definitions in hand, analyze your company’s balance sheet. Become familiar with what a typical balance looks like and what it can tell you about the financial state of a business. The Importance of Business Acumen.

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Persistent Overoptimism Three Ways: Truckers, Fed Economists, Manufacturers

MishTalk

Third-quarter Gross Domestic Product grew at a 1.5 My personal belief is the trucking industry needs to realize production of goods will have ups and downs,” Satish Jindel, principal of SJ Consulting , which closely tracks industry pricing, told Logistics Management. A possible explanation for the SEP’s prediction of a rapid catch-up to potential GDP after 2009 is that participants overestimated the efficacy of monetary policy in the aftermath of a so-called balance-sheet recession.

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Where I Think “Agile” is Headed, Part 2: Where Does Management Fit?

Johanna Rothman

In Part 1 , I wrote about how “Agile” is not a silver bullet and is not right for every team and every product. Not person-based optimization, but optimization for the products/services that the organization needs. However, if you require product innovation and you need resilience in the organization so you can change more often, you need Theory Y behaviors. They all say something like this: We need resilience in product development and delivery.

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Greek default in all but name - Tom Spencer consulting blog

Tom Spencer

Over the last few decades, countless risky financial products were sold to investors using harmless sounding terms like “credit default swap”, “mortgage backed security”, “special purpose vehicle” and “off-balance sheet financing”. About. Book Shop. Archive. Definitions. Helpful Links. Quotes. Subscribe. Greek default in all but name. by Tom Spencer on November 27, 2011 · 0 comments  ·  Image Source. in Economics.

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How to Improve Your Finance Skills (Even If You Hate Numbers)

Harvard Business

After all, if you’re trying to sell a product or strategy, you need to be able to demonstrate that it is both practical and high margin. See More Videos > See More Videos > Tackle the balance sheet. “Take an interest in the balance sheet and then do the due diligence to understand it,” he says. Experiment with the numbers on your organization’s balance sheet by going through a series of “what if?”

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Getting Your Deal Done

Martinka Consulting

Have a strong balance sheet. Pay them a fair wage, have a good culture, and keep productivity high. Originally published on ibainc.com blog in February 202! I was honored to have IBA team members Gregory Kovsky and Curt Maier contribute a chapter to my latest book, Getting the Deal Done. The book is 61 short chapters, 50 of them written by me and 11 by other deal pros like Gregory and Curt.

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6 Reasons Inflation is Higher than You Think

Tom Spencer

Due to improved technology and rising productivity, the Federal Reserve has been able to juice the money supply for more than 70 years without it showing up too much in the price level.

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Ivory Tower Academics, Inflation, and Kindness

MishTalk

And long-term rates are what matter for capital investment, which is key to increasing the economy’s growth potential and raising productivity.". Inflation Benefit 3 (?): "Balance sheet recession" might go away! To the extent it was reduced, it was because of the tide of boomer demographics and the fact that unlike Europe and Japan, the US did not lose productive capacity in WWII. Balance sheet recession" might go away!?

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The panda and the bicycle

Seth Godin Blog

And during the key formative years, the Apple tribe wouldn''t deign to buy Microsoft products. When your balance sheet or your direct mail numbers don''t add up, don''t blame the process that counted them. Many tribes gain in power and connection by finding their opposite, by identifying the choices that members won''t make. People like us don''t do things like that.". So the vegan tribe obviously chooses to not eat meat.

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Customer intent is a treasure trove of actionable data hiding in plain sight

1 to 1

By 2025, smart workflows and seamless interactions among humans and machines will be as standard as the corporate balance sheet, and most employees will use data to optimize nearly every aspect of their work, predicts McKinsey & Company.

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BIS Slams the Fed; Ridiculous Question of the Day: "Is The Fed Going To Attempt A Controlled Collapse?"

MishTalk

Historical evidence shows that this rarely happens following a balance sheet recession. Productivity growth in advanced economies has been on a declining trend since well before the onset of the financial crisis, and the workforce is already shrinking in several countries as the population ages. Put differently, under limited policy effectiveness, the balance between benefits and costs of prolonged monetary accommodation has deteriorated over time.

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Ben Bernanke vs. John Hussman; Beauty of Truth vs. Beast of Dogma; Four Questions

MishTalk

economy based on relationships that are indistinguishable from someone sneezing on a sheet of graph paper. Without paying banks interest to hold excess reserves idle in the banking system, the Fed could reduce its balance sheet by more than one-third (over $1.4 In practice, doubling the monetary base simply causes people to hold more idle money balances, and velocity simply falls in half.

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How the Great Recession Changed Banking

Harvard Business

That strengthened investment banks’ balance sheets by forcing them to scale back and to change the nature of the risks they take. As a result, their balance sheets are half as large on a risk-adjusted basis, and the capital they hold against trading positions has doubled over the past decade, our research shows. HBR Staff/CSA Plastock/Getty Images. Just over 10 years ago, French bank BNP Paribas froze U.S. mortgage-related funds.

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5 Ways to Increase Your Cross-Selling

Harvard Business

As a result, USAA outperforms most competitors in the number of products held by its customers. Managers wanting to grow share of wallet and raise the productivity of their cross-selling efforts may have to confront longstanding practices that stand in the way. Take a balance-sheet view. Many businesses organize around product lines and focus on achieving quarterly, monthly, or even weekly targets.

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Descent of the Global Monetary System

Tom Spencer

This is a problem because it forces households and businesses to divert energy away from productive activity and towards managing and avoiding the cost of inflation.

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Credit Equals Gold No.1

MishTalk

On January 15, Reuters reported China''s ICBC says won''t compensate investors in troubled shadow bank product. Industrial and Commercial Bank of China, the world''s largest bank by assets, said on Thursday that it has no plans to use its own money to repay investors in a troubled off-balance-sheet investment product that it helped to market." Heck, the name of the product itself was a likely indication of trouble.

Banking 57
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Align sales and marketing to gain customers, drive growth

1 to 1

Contact center automation can improve productivity, customer experience and employee engagement – not to mention bottom lines – by making it easier for associates to do their jobs well.

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Profitability Framework

Tom Spencer

This is not necessarily a problem if the decline was expected because a business is sustained from cashflow, not profit, and long term growth can be pursued through capital appreciation, which shows up on the balance sheet and not on the profit and loss statement. revenue, price per unit, units sold, product mix, segment mix, and gross margins) you will be able to discover the source of declining profitability. There are lots of ways to do this, including by: Product.

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Do You Know What Your Company’s Data Is Worth?

Harvard Business

Data contributes not only to brand equity, but to what constitutes product and service delivery in globally connected and hyper-competitive markets. For example, at the end of its 2015 fiscal year, Apple’s balance sheet stated tangible assets of $290 billion as a contribution to its annual revenues, with approximately $141 billion worth of intangible assets — a combination of intellectual capital, brand equity, and (investor and consumer) goodwill.

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Why Apple Is Getting into the Energy Business

Harvard Business

As the electric power industry shifts from a model where individual local utilities have a monopoly on electricity provision in a region to a much more dynamic market, these prosumers will be able to make and sell a variety of obscure new products and services like frequency regulation. east and north of Chicago already have “bulk” power markets that trade early versions of these new products and services.

Energy 37
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Next Phase in Currency Wars: Yen Plunge, Yuan Devaluation, and "Tidal Wave of Westbound Deflation"

MishTalk

It it is worth noting just how aggressive the BoJ has become with the central bank balance sheet already at around 55% of GDP and rapidly heading higher still! A key secondary problem is productivity issues between member states. The Yen currently trades about 115 to the US dollar. At the end of 2011 the Yen was about 77 to the dollar. That is a decline of roughly 33%. Yet, Japan''s inflation barely budged. Japan''s prime minister Shinz? Abe is not pleased.

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Another Definition of Deflation: Antal Fekete Defines Deflation as a "Pathological Slowing in the Velocity of Money"

MishTalk

The simple definition V = GDP/M where V is velocity, M is money supply, and GDP is Gross Domestic Product. Technological improvements in production cause a gently falling price level under sound money that is no deflation. Mish : I agree with Fekete that "price deflation" is a natural occurrence based on technology and productivity improvements. Gold is the only asset that is not duplicated as a liability in the balance sheet of someone else.

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Death by Hourly Rate

Rod Burkert

But increases in our productivity do not equate to equivalent increases in our hourly rates. And if we have plans to grow our practices based on hourly billing, we must balance the problem of finding and compensating top talent and having the demand for hours to bill.