Financial Accounting Quotes

There will never be a good time, financially, to get married, unless you're Shaq or Ray Romano. But somehow people manage. If your man is using money as an excuse not to marry you, it's your relationship that's insecure, not his bank account.

You should be concerned about the state of your soul, not the state of your bank account.

Curiosity is a luxury reserved for the financially secure: my mind was absorbed with more immediate concerns, such as the exact balance of my bank account, who I owed how much, and whether there was anything in my room I could sell for ten or twenty dollars.

I loved getting my M. B. A., and I really enjoyed being an accountant and financial analyst before I quit my day job twenty-five years ago to write full time. I just liked writing more…plus, I knew even then that as a full-time writer, I'd get plenty of chances to do business-type stuff, while as an accountant, I probably wouldn't get a lot of opportunities to write about dragons.

After the 11 September attack," March editorializes one morning, "amid all that chaos and confusion, a hole quietly opened up in American history, a vacuum of accountability, into which assets human and financial begin to vanish. Back in the days of hippie simplicity, people liked to blame 'the CIA' or 'a secret rogue operation.' But this is a new enemy, unnamable, locatable on no organization chart or budget line--who knows, maybe even the CIA's scared of them.

Maintaining good accounting records is vital to the successful management of a business. It's really good to be able to assess business-specific financial data to inform decisions. So every business should invest in good accounting software like Intuit, Quicken, or Freshbooks... Or any of the many apps out there.

Honest accounting is a really important part of corporate responsibility. Let's just be honest and transparent with the numbers. No inflating, no exaggerating, no reconfiguring... Just pure numbers that tell the honest truth about the companies financial reality.

Human beings thrive when they are growing and developing and this requires discipline. Discipline and accountability keep us alive.

After all, if I pass, I’ll have financial accounting to look forward to.  Isn’t that punishment enough?

She asked me for some advice regarding Mark’s financial affairs. It’s a very common problem for the families of missing persons – what happens when someone disappears? How long do you wait before you clean out their flat? Do you reregister their car? Who keeps paying the car payments? How do you access their bank account? What about rent and mortgage? When do you tell their employer you don’t think they’re coming back to their job?

Ultimately, incentive structures and systems drive ESG investing, which can be disingenuous. Structurally, public market investors continue to focus on the incentives which maximize their financial returns, even while taking certain ESG inputs into account in their portfolio allocations. Only by regulating and incentivizing the actual outcomes might investors alter their investment strategies towards new rewards based on ESG outputs.

A man is not allowed to practise medicine unless he knows something of the human body, but a financier is allowed to operate freely without any knowledge at all of the multifarious effects of his activities, with the sole exception of the effect upon his bank account.

As a source of the fledgling nation's financial might, slavery shaped our political institutions and founding documents, our laws governing private property and financial regulation, our management techniques and accounting systems, and our economic systems and labor unions.

Financial freedom is not a certain amount of money sitting in your bank account—it is when your passive income (earnings made by doing essentially no work) exceeds your expenses.

The first way to save and invest your money is to make a budget, and it should be done when you have absolutely nothing.Once you have received the salary into your account, keep record of every expenditure, and don't buy what is not in the budget.Compare the budgeted and actual in the next month then improve

life expectancy among working-class white Americans had been decreasing since the early 2000s. In modern history the only obvious parallel was with Russia in the desperate aftermath of the fall of the Soviet Union. One journalistic essay and academic research paper after another confirmed the disaster, until the narrative was capped in 2015 by Anne Case and Angus Deaton’s famous account of “deaths of despair.

Finishing a book has massive implications for the writer, an empty head and an empty bank account springs to mind.

Anybody can throw a basketball toward a hoop. But only a relative few can exercise the athletic prowess of dribbling down the court, account for and surpass a variety of obstacles, and actually get the ball into the hoop consistently and repetitively contributing toward an ultimate win for the team. In the same way, anyone can open an investment account with M1 or Acorns or Robinhood or Cashapp… or even with the big guys like Ameritrade or Fidelity or Charles Schwabb or Morgan Stanley… but only a relative few can navigate an ever-changing economic paradigm, overcome various financial, legal and social obstacles, maintaining alignment with values, and achieve substantial growth and profits - contributing toward an ultimate win for the team. It’s better to hire a professional investor if you expect professional results.

Say you have a dog, but you need to create a duck on the financial statements. Fortunately, there are specific accounting rules for what constitutes a duck: yellow feet, white covering, orange beak. So you take the dog and paint its feet yellow and its fur white and you paste an orange plastic beak on its nose, and then you say to your accountants, ‘This is a duck! Don’t you agree that it’s a duck?’ And the accountants say, ‘Yes, according to the rules, this is a duck.’ Everybody knows that it’s a dog, not a duck, but that doesn’t matter, because you’ve met the rules for calling it a duck.

I was an incurious student that semester. Curiosity is a luxury reserved for the financially secure: my mind was absorbed with more immediate concerns, such as the exact balance of my bank account, who I owed how much, and whether there was anything in my room I could sell for ten or twenty dollars.

Companies should manage tax liabilities strategically to optimize financial resources, enhance profitability, and ensure compliance with tax laws. Effective tax management reduces the tax burden and allows companies to allocate more resources to core activities, ultimately improving their bottom line.

The national debt—that is, the unfunded liabilities and fiscal operating debt—amounts to tens of trillions of dollars. The Government Accountability Office, the Congressional Budget Office, and numerous other public and private institutions have sounded warning alarms about the oncoming crash. But no serious or effective steps have been taken to address this simmering financial and economic implosion.

I would tell my 14 year old self to never ever, ever put all of your money in one bank account. And love the ones who love you back. You're going to want to quit...DON'T! Oh, and get everything in writing.

Excel suffers from an image problem. Most people assume that spreadsheet programs such as Excel are intended for accountants, analysts, financiers, scientists, mathematicians, and other geeky types. Creating a spreadsheet, sorting data, using functions, and making charts seems daunting, and best left to the nerds.

Money, it is conventional to argue, is a medium of exchange, which has the advantage of eliminating inefficiencies of barter; a unit of account, which facilitates valuation and calculation; and a store of value, which allows economic transactions to be conducted over long periods as well as geographical distances. To perform all these functions optimally, money has to be available, affordable, durable, fungible, portable and reliable.

People are accustomed to thinking of accounting as dry and boring, a necessary evil used primarily to prepare financial reports and survive audits, but that is because accounting is something that has become taken for granted.

To have a society, you first need an institutional framework: that’s constitutional law. You need a system of punishment: that’s criminal. You need to know that you have a system in place that will make those other systems work: that’s civil procedure. You need a way to govern matters of domain and ownership: that’s property. You need to know that someone will be financially accountable for injuries caused you by others: that’s torts. And finally, you need to know that people will keep their agreements, that they will honor their promises: and that is contracts.

Consider the following sequence of cases, which we shall call the Tale of the Slave, and imagine it is about you. 1. There is a slave completely at the mercy of his brutal master’s whims. He is often cruelly beaten, called out in the middle of the night, and so on. 2. The master is kindlier and beats the slave only for stated infractions of his rules (not fulling the work quota, and so on). He gives the slave some free time. 3. The master has a group of slave, and he decides how things are to be allocated among them on nice grounds, taking into account their needs, merit, and so on. 4. The master allows the slave four days on their own and requires them to work only three days a week on his land. The rest of the time is their own. 5. The master allows his slaves to go off and work in the city (or anywhere they wish) for wages. He also retains the power to recall them to the plantation if some emergency threatens his land; and to raise or lower the three-sevenths amount required to be turned over to him. He further retains the right to restrict the slaves from participating in certain dangerous activities that threaten his financial return, for example, mountain climbing, cigarette smoking. 6. The master allows all of his 10,000 slaves, except you, to vote, and the joint decision is made by all of them. There is open discussion, and so forth, among them, and they have the power to determine to what use to put whatever percentage of your (and their) earnings they decide to take; what activities legitimately may be forbidden to you, and so on. 7. Though still not having the vote, you are at liberty (and are given the right) to enter into discussion of the 10,000, to try to persuade them to adopt various policies and to treat you and themselves in a certain way. They then go off to vote to decide upon policies covering the vast range of their powers. 8. In appreciation of your useful contributions to discussion, the 10,000 allow you to vote if they are deadlocked; they commit themselve3s to this procedure. After the discussion you mark your vote on a slip of paper, and they go off and vote. In the eventuality that they divide evenly on some issue, 5,000 for and 5,000 against, they look at your ballot and count it in. This has never yet happened; they have never yet had occasion to open your ballot. (A single master may also might commit himself to letting his slave decide any issue concerning him about which he, the master, was absolutely indifferent.) 9. They throw your vote in with theirs. If they are exactly tied your vote carries the issue. Otherwise it makes no difference to the electoral outcome. The question is: which transition from case 1 to case 9 made it no longer the tale of the slave?

I have long believed the city, the country, indeed the world at large to be run by precisely the wrong kind of people. From the government to the great financial institutions, the peerage to the police force, our lives are controlled without exception by the stupid and greedy, the venal, the rapacious and the undeservedly rich. How much more comfortable would it be if the rulers of the world were not the cognoscenti of the bank balance, the ballot box, the offshore account, but were drawn instead from the ranks of the everyday - honest, kind, stout-hearted, commonplace folk.

What you may not know is that this course load reflects—beautifully, simply—the very structure of our society, the very mechanics of what a society, our particular society, needs to make it work. To have a society, you first need an institutional framework: that’s constitutional law. You need a system of punishment: that’s criminal. You need to know that you have a system in place that will make those other systems work: that’s civil procedure. You need a way to govern matters of domain and ownership: that’s property. You need to know that someone will be financially accountable for injuries caused you by others: that’s torts. And finally, you need to know that people will keep their agreements, that they will honor their promises: and that is contracts.

Millennials: We lost the genetic lottery. We graduated high school into terrorist attacks and wars. We graduated college into a recession and mounds of debt. We will never acquire the financial cushion, employment stability, and material possessions of our parents. We are often more educated, experienced, informed, and digitally fluent than prior generations, yet are constantly haunted by the trauma of coming of age during the detonation of the societal structure we were born into. But perhaps we are overlooking the silver lining. We will have less money to buy the material possessions that entrap us. We will have more compassion and empathy because our struggles have taught us that even the most privileged can fall from grace. We will have the courage to pursue our dreams because we have absolutely nothing to lose. We will experience the world through backpacking, couch surfing, and carrying on interesting conversations with adventurers in hostels because our bank accounts can't supply the Americanized resorts. Our hardships will obligate us to develop spiritual and intellectual substance. Maybe having roommates and buying our clothes at thrift stores isn't so horrible as long as we are making a point to pursue genuine happiness.

Pregnancy had seemed a reasonable excuse for letting her metal-smithing tools languish, but that accounted for only eighteen months of the last twenty-six years. Motherhood wasn't the real problem, though it took him a long time to figure out what was. She needed resistance, the very quality that metal most demonstrably offered up. Suddenly Glynis had no difficulty to overcome, no hard artisan's life with galleries filching half the too-small price of a mokume brooch that had taken three weeks to forge. No, her husband made a good living, and if she slept late and dawdled the afternoon away reading Lustre, American Craft Magazine and Lapidary Journal, the phone bill would still get paid. For that matter, she needed need itself. She could overcome her anguish about embarking on an object that, once completed, might not meet her exacting standards only if she had no choice. In this sense, his helping had hurt her. By providing the financial cushion that should have facilitated making all the metal whathaveyou she liked, he had ruined her life. Wrapped in a slackening bow, ease was a poisonous present.

Still smiling, he leaned toward me. "You're jealous, aren't you?" "Why would I be jealous of her?" "Because she has what you don't." "Which would be what? A bad hairdresser, poor rhythm, or a striking lack of financial sense when it comes to buying clothes?" His smile grew. "Admit it, you're jealous." "I'm not jealous." I straightened the napkins into a tall stack. "Rich people are so arrogant. You all think everyone just sits around coveting your wealth. Well, my happiness isn't dependent on my account numbers." He gave a mock grunt. "I wasn't talking about Olivia's money. I was talking about me." "Oh." It was suddenly hard to breathe.

Strategic tax management also enhances a company's competitiveness by enabling them to make informed financial decisions, attract investors, and adapt to changing tax regulations. It helps in minimizing financial risk and ensuring that the company's financial health remains strong, fostering long-term sustainability and growth.

As Nassim Taleb pointed out in The Black Swan, our tendency to construct and believe coherent narratives of the past makes it difficult for us to accept the limits of our forecasting ability. Everything makes sense in hindsight, a fact that financial pundits exploit every evening as they offer convincing accounts of the day’s events.

Cash in your bank account is as safe as the creditworthiness of your banker. No more, no less.

Sometimes, it is not the money in your bank account that solves your problem, but the wisdom in your head.

The medical profession and the leading academic institutions where mind control research was done have not yet provided a meaningful public accounting, financial or ethical, of this experimentation.

The HSA (Health Savings Account) is a great way to save on premiums. The high deductible creates a much lower premium, and this plan allows you to save for medical expenses in a tax-free savings account.

Self-care is an attitude toward ourselves and our lives that says, I am responsible for myself. I am responsible for leading or not living my life. I am responsible for tending to my spiritual, emotional, physical, and financial well-being. I am responsible for identifying and meeting my needs. I am responsible for solving my problems or learning to live with those I cannot solve. I am responsible for my choices. I am responsible for what I give and receive. I am also responsible for setting and achieving my goals. I am responsible for how much I enjoy life, for how much pleasure I find in daily activities. I am responsible for whom I love and how I choose to express this love. I am responsible for what I do to others and for what I allow others to do to me. I am responsible for my wants and desires. All of me, every aspect of my being, is important. I count for something. I matter. My feelings can be trusted. My thinking is appropriate. I value my wants and needs. I do not deserve and will not tolerate abuse or constant mistreatment. I have rights, and it is my responsibility to assert these rights. The decisions I make and the way I conduct myself will reflect my high self-esteem. My decisions will take into account my responsibilities to myself.

Companies should maintain accurate and timely financial records because it serves as the foundation for informed decision-making, ensures compliance with regulatory requirements, and enhances transparency, ultimately bolstering trust among stakeholders and facilitating long-term financial stability and growth. Without good records, businesses may risk financial mismanagement and uncertainty, hindering their ability to thrive in a competitive market.

In fact, they are not taught in any university departments: the dynamics of debt, and how the pattern of bank lending inflates land prices, or national income accounting and the rising share absorbed by rent extraction in the Finance, Insurance and Real Estate (FIRE) sector. There was only one way to learn how to analyze these topics: to work for banks. Back in the 1960s there was barely a hint that these trends would become a great financial bubble.

If during the review of a corporation’s books, the accountant has reason to believe that the company may go bankrupt, he must issue a “qualified opinion” stating the potential of the company’s demise. More on this concept later.

Corporations do not automatically obey laws. They weigh the size of the penalty relative to the gain from law breaking. In the age of oligarchy, laws are window dressing when penalties aren’t high enough and the people responsible for the lawbreaking are not held accountable. Unless the government prosecutes individuals or at least claws back their pay, the law is not of particular concern to the inhabitants of C-suites. Eleven years after Wall Street’s near meltdown, not a single major financial executive had been convicted or even indicted for crimes that wiped out the savings of countless Americans. Contrast this with a teenager who is imprisoned for years for selling an ounce of marijuana.

What is to be learned from this case scenario? Choose a financial advisor who is endorsed by an enlightened accountant and/or his clients with investment portfolios that in the long run outpace the market. If you don’t have an accountant, hire one. Another

financial intelligence is a synergy of accounting, investing, marketing, and law. Combine those four technical skills and making money with money is easier than most people would believe. When it comes to money, the only skill most people know is to work hard.

If you are a self-possessed man with a healthy sense of detachment from your bank account and someone writes you a cheque for tens of millions of dollars you probably behave as if you have won a sweepstake, kicking your feet in the air and laughing yourself to sleep at night at the miracle of your good fortune. But if your sense of self-worth is morbidly wrapped up in your financial success you probably believe you deserve everything you get. You take it as a reflection of something grand inside you. You acquire gravitas,

I have found that if I tend to a person’s illness rather than to the person, I am going to treat that person as if they are their illness. In doing so, I run the risk of limiting them greatly and helping them to focus in on their illness as if that is all they are. It is so important to see and help a person and not just a condition. Everyone is different, with unique twists and challenges, so the same herbs are not applied for the same 'condition.' The herbs chosen are connected to the whole personincluding their illness, their constitution, their diet, their psychology, their history, their tastes, their lifestyle, and their joys and sorrows. I always try to set a person up to succeed, and take their preferences, abilities, stamina, and financial resources into account when helping choose their plant medicines.

Without real accounting and financial transparency and sharing of information, there can be no economic democracy. Conversely, without a real right to intervene in corporate decision-making (including seats for workers on the company’s board of directors), transparency is of little use. Information must support democratic institutions; it is not an end in itself. If democracy is someday to regain control of capitalism, it must start by recognizing that the concrete institutions in which democracy and capitalism are embodied need to be reinvented again and again.59

Someone driving a $100,000 car might be wealthy. But the only data point you have about their wealth is that they have $100,000 less than they did before they bought the car (or $100,000 more in debt). That’s all you know about them. We tend to judge wealth by what we see, because that’s the information we have in front of us. We can’t see people’s bank accounts or brokerage statements. So we rely on outward appearances to gauge financial success. Cars. Homes. Instagram photos. Modern capitalism makes helping people fake it until they make it a cherished industry.

Meanings don't just affect the way we feel; they affect all of our relationships and interactions. Some people think the first ten years of a relationship is just the beginning; that they're just now getting to know each other, and it's really exciting. It's an opportunity to go deeper. Other people could be ten days into a relationship, and the first time they have an argument, they think it's the end. Now tell me, if you think this is the beginning of a relationship, are you going to behave the same way as if it were the end? That one slight shift in perception, in meaning, can change your whole life in a moment. In the beginning of a relationship, if you're totally in love and attracted, what will you do for the other person? The answer is: anything! If he or she asks you to take out the trash, you might leap to your feet and say, "Anything that lights you up, sweetheart!" But after seven days, seven years, or seventy years, people say things like, "What the hell do you think I am, your janitor?!" And they wonder what happened to the passion in their life. I've often shared with couples having trouble in their relationships that if you do what you did in the beginning of the relationship, there wont be an end! Because in the beginning of the relationship, you were a giver, not an accountant. You weren't weighing constantly the meaning of who was giving more. Your entire focus was just lighting up that person, and his or her happiness made you feel like your life was filled with joy.

The first way to save and invest your money is to have a budget, and it should be prepared when you have absolutely nothing.Once the funds have gone into your account, start keeping a record of every expenditure, and don't go for things which are not in the budget. Compare the budget and actual in the following month.

1. Accounting Entity The accounting entity is the business unit (regardless of the legal business form) for which the financial statements are being prepared. The accounting entity principle states that there is a “business entity” separate from its owners … a fictional “person” called a company for which the books are written.

Here’s the deal. When you get married, you become a team. The pastor at your wedding wasn’t joking when he said, “And now you are one.” It’s called unity. The old marriage vows say, “Unto thee I pledge all my worldly goods.” In other words, “I’m all in,” so combine the checking accounts. It’s hard to have unity when you separate your bank accounts. When his money is over here, and her money is over there, it’s easy to live in your own little financial world instead of working as a team. When you do your spending together, it’s about “our” money. We have an income and we have expenses and we have goals. So when you’re both in agreement on where the money is going, then you’ve taken a major step to being on the same page in your marriage, and you will create awesome levels of communication. This all boils down to trust. Do you trust your spouse or not? I’ve heard from people who keep separate bank accounts just in case their spouse leaves them. Well, why on earth would you marry someone you can’t trust? And if that’s really the case, then you need marriage counseling, not separate bank accounts! Your spouse isn’t your roommate, and this isn’t a joint business venture. It’s a marriage! You don’t run your household and your life separately. Your job is to love each other well, and that includes having shared financial goals—which is hard to do when you have separate accounts.

perfectionism is a desperate attempt to live up to impossible standards. Perfectionism will do anything to protect those impossible standards. It can’t let you find out how impossible they are, especially with the cold eye of data, so it terrifies you into thinking that you’ll be crushed by disappointment if you peer behind that curtain. Data would tell you that your bank account is low, but you’re spending a lot more on coffee than you think. If you started making it at home, you could easily start saving for a vacation. You might even stop comparing yourself to the impossible financial standards of your friends online. You might make some reasonable goals and completely change the way you view money. You might even have fun.

University of Otago social historian Hera Cook provides a beautiful illustration of exactly this point in her rich account of the sexual revolution.49 Cook notes that in eighteenth-century England, women were assumed to be sexually passionate. But drawing on economic and social changes, fertility-rate patterns, personal accounts, and sex surveys and manuals, Cook charts the path toward the sexual repression of the Victorian era. This was a time of reduced female economic power, thanks to a shift from production in the home to wage earning, and there was less community pressure on men to financially support children fathered out of wedlock. And so, in the absence of well-known, reliable birth control techniques, “women could not afford to enjoy sex. The risk made it too expensive a pleasure.”50

In winter, everything dies, though preparations continue. The tasks of winter include: • Getting the financials in order; • Squaring accounts with lenders for last years’ crops and lining up next year’s money; • Repairing equipment and getting it ready for next year; • Preparing fields for the upcoming year; and • Reviewing the successes and failures of the past year and tweaking things to do everything better next year.

Alongside the development of theatres came the growth of an acting culture; in essence it was the birth of the acting profession. Plays had generally been performed by amateurs - often men from craft guilds. Towards the end of the sixteenth century there developed companies of actors usually under the patronage of a powerful or wealthy individual. These companies offered some protection against the threat of Puritan intervention, censorship, or closure on account of the plague. They encouraged playwrights to write drama which relied on ensemble playing rather than the more static set pieces associated with the classical tradition. They employed boys to play the parts of women and contributed to the development of individual performers. Audiences began to attend the theatre to see favourite actors, such as Richard Burbage or Will Kempe, as much as to see a particular play. Although the companies brought some stability and professionalism to the business of acting - for instance, Shakespeare's company, the Lord Chamberlain's, subsequently the King's, Men, continued until the theatres closed (1642) - they offered little security for the playwright. Shakespeare was in this respect, as in others, the exception to the rule that even the best-known and most successful dramatists of the period often remained financially insecure.

Neofeudalism: Much as warlords seized land in the Norman Conquest and levied rent on subject populations (starting with the Domesday Book, the great land census of England and Wales ordered by William the Conqueror), so today’s financialized mode of warfare uses debt leverage and foreclosure to pry away land, natural resources and economic infrastructure. The commons are privatized by bondholders and bankers, gaining control of government and shifting taxes onto labor and small-scale industry. Household accounts, corporate balance sheets and public budgets are earmarked increasingly to pay real estate rent, monopoly rent, interest and financial fees, and to bear the taxes shifted off rentier wealth. The rentier oligarchy makes itself into a hereditary aristocracy lording it over the population at large from gated communities that are the modern counterpart to medieval castles with their moats and parapets.

One way to exert power in restraint of democracy is to bend the state to a market logic, pretending one can replace “citizens” with “customers” (see point 5). Consequently, the neoliberals seek to restructure the state with numerous audit devices (under the sign of “accountability” or the “audit society”) or impose rationalization through introduction of the “new public management”; or, better yet, convert state services to private provision on a contractual basis.

the odds are impossibly long for anyone to land an athletics scholarship. Nearly 8 million kids played high school sports in 2019. But only 495,000 of them ended up competing in college, and many fewer—just 150,000 or about 2 percent of those who participated in high school—received scholarships, according to the National Collegiate Athletic Association. If you’re expecting a financial return on the investment in your kid’s sports, you’re better off putting your money into a plain-vanilla savings account.

Said the Broadway star Billie Burke, “The Roaring Twenties were very pleasant if you did not stop to think.” Most people didn’t stop to think. And still don’t, as they look back. If they did, they would see not just the pervasiveness of hardship throughout the decade, but the horrible prelude it proved to be—for at its opposite end, there was a different kind of explosion on Wall Street. The stock market crashed, and much of the United States crashed along with it. The value of investments dropped like never before, never since; the term “Depression” described not just the ruination of financial accounts, but the attitude of an entire nation, so many people so painfully victimized by a lack of income and, with it, a lack of opportunity. The New Deal helped, but it took another Great War, after yet another decade, to jump-start economic growth again. Ten years, it might have been, from Prohibition to stock-market crash, but they held a century’s worth of turmoil and jubilation, irrationality and intrigue, optimism and injustice. It all began in 1920.

Read the notes.Never buy a stock without reading the footnotes to the financial statements in the annual report. Usually labeled “summary of significant accounting policies,” one key note describes how the company recognizes revenue, records inventories, treats installment or contract sales, expenses its marketing costs, and accounts for the other major aspects of its business.7 In the other footnotes, watch for disclosures about debt, stock options, loans to customers, reserves against losses, and other “risk factors” that can take a big chomp out of earnings

To have a society, you first need an institutional framework: that’s constitutional law. You need a system of punishment: that’s criminal. You need to know that you have a system in place that will make those other systems work: that’s civil procedure. You need a way to govern matters of domain and ownership: that’s property. You need to know that someone will be financially accountable for injuries caused you by others: that’s torts. And finally, you need to know that people will keep their agreements, that they will honor their promises: and that is contracts.” He

Instead of using their vastly increased material and technical resources to build a wonder-city, they built slums; and they thought it right and advisable to build slums because slums, on the test of private enterprise, "paid", whereas the wonder-city would, they thought, have been an act of foolish extravagance, which would, in the imbecile idiom of the financial fashion, have "mortgaged the future"; though how the construction to-day of great and glorious works can impoverish the future, no man can see until his mind is beset by false analogies from an irrelevant accountancy.

The guest speaker was Herb Sandler, the CEO of a giant savings and loan called Golden West Financial Corporation. “Someone asked him if he believed in the free checking model,” recalls Eisman. “And he said, ‘Turn off your tape recorders.’ Everyone turned off their tape recorders. And he explained that they avoided free checking because it was really a tax on poor people—in the form of fines for overdrawing their checking accounts. And that banks that used it were really just banking on being able to rip off poor people even more than they could if they charged them for their checks.

Speculators, meanwhile, have seized control of the global economy and the levers of political power. They have weakened and emasculated governments to serve their lust for profit. They have turned the press into courtiers, corrupted the courts, and hollowed out public institutions, including universities. They peddle spurious ideologies—neoliberal economics and globalization—to justify their rapacious looting and greed. They create grotesque financial mechanisms, from usurious interest rates on loans to legalized accounting fraud, to plunge citizens into crippling forms of debt peonage. And they have been stealing staggering sums of public funds, such as the $65 billion of mortgage-backed securities and bonds, many of them toxic, that have been unloaded each month on the Federal Reserve in return for cash.21 They feed like parasites off of the state and the resources of the planet. Speculators at megabanks and investment firms such as Goldman Sachs are not, in a strict sense, capitalists. They do not make money from the means of production. Rather, they ignore or rewrite the law—ostensibly put in place to protect the weak from the powerful—to steal from everyone, including their own shareholders. They produce nothing. They make nothing. They only manipulate money. They are no different from the detested speculators who were hanged in the seventeenth century, when speculation was a capital offense. The obscenity of their wealth is matched by their utter lack of concern for the growing numbers of the destitute. In early 2014, the world’s 200 richest people made $13.9 billion, in one day, according to Bloomberg’s billionaires index.22 This hoarding of money by the elites, according to the ruling economic model, is supposed to make us all better off, but in fact the opposite happens when wealth is concentrated in the hands of a few individuals and corporations, as economist Thomas Piketty documents in his book Capital in the Twenty-First Century.23 The rest of us have little or no influence over how we are governed, and our wages stagnate or decline. Underemployment and unemployment become chronic. Social services, from welfare to Social Security, are slashed in the name of austerity. Government, in the hands of speculators, is a protection racket for corporations and a small group of oligarchs. And the longer we play by their rules the more impoverished and oppressed we become. Yet, like

I thought about the core tools we EHMs used in my day: false economics that included distorted financial analyses, inflated projections, and rigged accounting books; secrecy, deception, threats, bribes, and extortion; false promises that we never intended to honor; and enslavement through debt and fear. These same tools are used today. Now, as then, many elements are present in each “hit,” although that likely is evident only to someone willing to delve deeply into the story behind the story. Now, as then, the glue that holds all of this together is the belief that any means are justified to achieve the desired ends. A

the imposition of a negative real interest rate – effectively a wealth tax – on all forms of financial wealth expropriates the incomes of savers and might alter expectations of future effective rates of wealth taxes. If you are told, for example, that all your assets held in accounts fixed in money terms will be subject to a 5-percentage-point wealth tax, you might, it is true, decide to spend today, but you might well, fearful of what the government could do next year, batten down the hatches and cut spending. Households and businesses might simply conserve their resources to cope with an unpredictable and unknowable future. The

But that Friday of the beam meeting, a check in the amount of £5,000 mysteriously, and conveniently, turned up in his Lloyds account. The name on the deposited check was that of Brendan Bracken, Churchill’s parliamentary private secretary, but the true source was Bracken’s wealthy co-owner of the Economist magazine, Sir Henry Strakosch. Three days earlier, upon receiving a statement from Lloyds listing his overdraft, Churchill had called Bracken to his office. He was fed up with the distraction and pressure caused by his financial troubles and had far more important matters to confront. He told Bracken to fix the situation, and Bracken did.

You may well ask: when the bubble finally burst, why did we not let the bankers crash and burn? Why weren't they held accountable for their absurd debts? For two reasons. First because the payment system - the simple means of transferring money from one account to another and on which every transaction relies - is monopolised by the very same bankers who were making the bets. Imagine having gifted your arteries and veins to a gambler. The moment he loses big at the casino, he can blackmail you for anything you have simply by threatening to cut off your circulation. Second, because the financiers' gambles contained deep inside the title deeds to the houses of the majority. A full-scale financial market collapse could therefore lead to mass homelessness and a complete breakdown in the social contract. Don't be surprised that the high and mighty financiers of Wall Street would bother financialising the modest homes of poor people. Having borrowed as much as they could off banks and rich clients in order to place their crazy bets, they craved more since the more they bet, the more they made. So they created more debt from scratch to use as raw materials for more bets. How? By lending to impecunious blue collar worker who dreamed of the security of one day owning their own home. What if these little people could not actually afford their mortgage in the medium term? In contrast to bankers of old, the Jills and the Jacks who actually leant them the money did not care if the repayments were made because they never intended to collect. Instead, having granted the mortgage, they put it into their computerised grinder, chopped it up literally into tiny pieces of debt and repackaged them into one of their labyrinthine derivatives which they would then sell at a profit. By the time the poor homeowner had defaulted and their home was repossessed, the financier who granted the loan in the first place had long since moved on.

A Sidewalker’s financial destination doesn’t exist. The plan is to have no plan. Surplus money is immediately spent on the next great gadget, the next trip, the next newer car, the next fashionable style, or the next hot fad. The Sidewalk’s siren song is instant gratification which can come from many addictive sources: junk food, shopping, video games, television, and smartphones. Money is disrespected like a hot potato that’s quickly exchanged for the latest fix of the week. Responsibility and accountability? Weak, or worse, absent. Moreover, “feelings” and quick dopamine hits are prioritized over logic and critical thinking, two skills needed for an extraordinary life.

Here are my simple rules for identifying market tops and bottoms: 1. Market tops are relatively easy to recognize. Buyers generally become overconfident and almost always believe “this time is different.” It’s usually not. 2. There’s always a surplus of relatively cheap debt capital to finance acquisitions and investments in a hot market. In some cases, lenders won’t even charge cash interest, and they often relax or suspend typical loan restrictions as well. Leverage levels escalate compared to historical averages, with borrowing sometimes reaching as high as ten times or more compared to equity. Buyers will start accepting overoptimistic accounting adjustments and financial forecasts to justify taking on high levels of debt. Unfortunately most of these forecasts tend not to materialize once the economy starts decelerating or declining. 3. Another indicator that a market is peaking is the number of people you know who start getting rich. The number of investors claiming outperformance grows with the market. Loose credit conditions and a rising tide can make it easy for individuals without any particular strategy or process to make money “accidentally.” But making money in strong markets can be short-lived. Smart investors perform well through a combination of self-discipline and sound risk assessment, even when market conditions reverse.

Having seen several hundred lease agreements entered into by people I have counseled, my financial calculator confirms that the average interest rate is 14 percent. Shouldn’t you lease or rent things that go down in value? Not necessarily, and the math doesn’t work on a car, for sure. Follow me through this example: If you rent (lease) a car with a value of $22,000 for three years, and when you turn it in at the end of that three-year lease the car is worth $10,000, someone has to cover the $12,000 loss. You’re not stupid, so you know that General Motors, Ford, or any of the other auto giants aren’t going to put together a plan to lose money. Your fleece/lease payment is designed to cover the loss in value ($12,000 spread over 36 months is equal to $333 per month), plus provide profit (the interest you pay). Where did you get a deal in that? You didn’t! On top of that, there is the charge of 10 to 17 cents per mile for going over the allotted miles and the penalties everyone turning in a lease has experienced for “excessive wear and tear,” which takes into account every little nick, dent, carpet tear, smudge, or smell. You end up writing a large check just to walk away after renting your car. The whole idea of the back-end penalties is twofold: to get you to fleece/lease another one so you can painlessly roll the gotchas into the new lease, and to make sure the car company makes money.

How common is resource infidelity? One survey of a thousand individuals in New York City revealed that 40 percent of married women and 37 percent of married men had a secret bank account.12 A Harris survey found somewhat lower numbers, but nonetheless 31 percent admitted lying to their spouse about some aspect of finances—58 percent of those who did hid cash, 30 percent hid a bill, 15 percent hid a bank account, 11 percent lied about earnings, and another 11 percent lied about debt.13 Another study found that 80 percent of respondents admitted to hiding money from their spouse.14 Regardless of the exact numbers, which vary from study to study, sample to sample, and method to method, financial infidelity is clearly not uncommon.

Cryptocurrencies may provide an illusion of financial freedom and control, but the reality is that users often rely on centralized exchanges and wallets, introducing counterparty risk and potential loss of control over their assets. The difference though is that its nearly impossible to hold these counterparties accountable. They're selling you one kind of freedom for the price of many additional risks. I was once a little woo’d by the possibility of what crypto could offer the world, but on a net basis with all things considered holistically, I'd say it's not worth it. As a society, we need government fiat. And we need banks. And we need regulatory entities with the authority and the power to ensure order and accountability at scale.

Dr. Zackson’s is a licensed clinical psychologist in Greenwich, CT and New York City, and her practice is in a private, confidential, therapeutic setting. She has modeled her practice in the style of an ‘old-time’ family practitioner, with the goal of getting to know you beyond presenting issue taking into account family, work, and financial constraints. She will customize therapy to best suit your needs, and will ultimately help you to become your own therapist by learning how to better deal with the challenges that come up in your life. Services:- * Therapy Trauma * Therapy social anxiety * Therapy Depression * Therapy for anxiety * Therapist Nyc Judith zackson * Psychologist Nyc Judith zackson * Psychologist Greenwich * Therapist Greenwich

One can even imagine that inflation tends to improve the relative position of the wealthiest individuals compared to the least wealthy, in that it enhances the importance of financial managers and intermediaries. A person with 10 or 50 million euros cannot afford the money managers that Harvard has but can nevertheless pay financial advisors and stockbrokers to mitigate the effects of inflation. By contrast, a person with only 10 or 50 thousand euros to invest will not be offered the same choices by her broker (if she has one): contacts with financial advisors are briefer, and many people in this category keep most of their savings in checking accounts that pay little or nothing and/or savings accounts that pay little more than the rate of inflation.

Deep caring about each other's fate does seem to be on the decline, but I do not believe that New Age narcissism is much to blame. The external causes of our moral indifference are a fragmented mass society that leaves us isolated and afraid, an economic system that puts the rights of capital before the rights of people, and a political process that makes citizens into ciphers. These are the forces that allow, even encourage, unbridled competition, social irresponsibility, and the survival of the financially fittest. The executives who brought down the major corporations by taking indecent sums off the top while wage earners of modest means lost their retirement accounts were clearly more influenced by capitalist amorality than by some New Age guru.

In the USA, the “corporament” exists as the: military (defense/offense) + industrial + academic (schooling – at all levels – as prison) + “corporament” entertainment (Hollywood, media, advertising/consumerism/commercialization, propaganda/psychological warfare) + judicial (defense and prosecutorial lawyers, judges, law enforcement/police, prisons) + financial (banks, accounting firms) + religion + petrochemical/pharmaceutical (drugs, antibiotics, antibacterials, vaccines, pesticides – toxins to kill or put you at “dis-ease” and drugs to “treat” you) + imperial commu-soci-capitofasdemocracism system/society/economy/Western thinking = Military-industrial-academic-“corporament” entertainment-judicial-financial-religion-petrochemical/pharmaceutical complex.

What you may not know is that this course load reflects—beautifully, simply—the very structure of our society, the very mechanics of what a society, our particular society, needs to make it work. To have a society, you first need an institutional framework: that’s constitutional law. You need a system of punishment: that’s criminal. You need to know that you have a system in place that will make those other systems work: that’s civil procedure. You need a way to govern matters of domain and ownership: that’s property. You need to know that someone will be financially accountable for injuries caused you by others: that’s torts. And finally, you need to know that people will keep their agreements, that they will honor their promises: and that is contracts.” He

The U.S. government stepped in during economic crises all the time. Less than five years earlier, the United States had used billions of dollars of taxpayer money to bail out Wall Street banks during the 2008 financial crisis. During the Great Depression the government had prohibited U.S. citizens from owning gold: in 1933, President Roosevelt had signed executive order 6102, requiring citizens to turn in their gold for cash. It wasn’t until 1975, when President Ford repealed this order, that it was again legal for Americans to own gold that wasn’t jewelry or coins. And all bank deposits were only insured to the tune of $250,000. “More than twenty thousand account holders at Laika, the second largest bank in Cyprus, are going to have half of their savings taken away,

As always, behind the flow of money necessary for such mergers and acquisitions were the banks. Once there were hundreds of banks in America, owned by individuals and local families. But due to government regulations put into place during the Reagan-Bush years, these banks either faded away or consolidated. In 1990, there were thirty-seven major banks in the U.S. By 2009, buy-outs, mergers, and bankruptcies had reduced this number to four. Those left standing were Citigroup, JPMorgan Chase, Bank of America, and Wells Fargo, according to the General Accounting Office. Ominously, in June 2012, the giant global rating agency Moody’s downgraded the ratings of Bank of America, Goldman Sachs, and JP Morgan, citing concerns for the stability of the world’s financial system.

I suggest a Money Market account with no penalties and full check-writing privileges for your emergency fund. We have a large emergency fund for our household in a mutual-fund company Money Market account. Wherever you get your mutual funds, look at the website to find Money Market accounts that pay interest equal to one-year CDs. I haven’t found bank Money Market accounts to be competitive. The FDIC does not insure the mutual-fund Money Market accounts, but I keep mine there anyway because I’ve never known one to fail. Keep in mind that the interest earned is not the main thing. The main thing is that the money is available to cover emergencies. Your wealth building is not going to happen in this account; that will come later, in other places. This account is more like insurance against rainy days than it is investing.

These examinations and certificates and so on--what did they matter? And all this efficiency and up-to-dateness--what did that matter, either? Ralston was trying to run Brookfield like a factory--a factory for turning out a snob culture based on money and machines. The old gentlemanly traditions of family and broad acres were changing, as doubtless they were bound to; but instead of widening them to form a genuine inclusive democracy of duke and dustman, Ralston was narrowing them upon the single issue of a fat banking account. There never had been so many rich men's sons at Brookfield. The Speech Day Garden Party was like Ascot. Ralston met these wealthy fellows in London clubs and persuaded them that Brookfield was the coming school, and, since they couldn't buy their way into Eton or Harrow, they greedily swallowed the bait. Awful fellows, some of them--though others were decent enough. Financiers, company promoters, pill manufacturers. One of them gave his son five pounds a week pocket money. Vulgar . . . ostentatious . . . all the hectic rotten-ripeness of the age. . . . And once Chips had got into trouble because of some joke he had made about the name and ancestry of a boy named Isaacstein. The boy wrote home about it, and Isaacstein père sent an angry letter to Ralston. Touchy, no sense of humor, no sense of proportion--that was the matter with them, these new fellows. . . . No sense of proportion. And it was a sense of proportion, above all things, that Brookfield ought to teach--not so much Latin or Greek or Chemistry or Mechanics. And you couldn't expect to test that sense of proportion by setting papers and granting certificates...

Bank-friendly writers and lobbyists fostered a myth that the economy needed its investment banks to remain solvent to keep the economy functioning. But many former officials, including Bair, SIGTARP‘s Neil Barofsky, and Reagan Administration budget director David Stockman, rejected the claims that public guarantees for reckless bank loans was needed to protect insured depositors. Retail savings and checking accounts were never threatened by the bad gambles that banks made. But this myth had to be promoted in order for Paulson, Geithner Bernanke and other bank protectors to persuade Congress to overrule Bair and make government (“taxpayers”) pay. Their aim was to save the banks from being nationalized, and to protect bankers from being prosecuted for fraud or reining in the exorbitant salaries and bonuses they had given themselves. No attempt was made to change the system that had led to the crash. If

But scamming large amounts of money off the top seems even harder to catch. Fraud by American defense contractors is estimated at around $100 billion per year, and they are relatively well behaved compared to the financial industry. The FBI reports that since the economic recession of 2008, securities and commodities fraud in the United States has gone up by more than 50 percent. In the decade prior, almost 90 percent of corporate fraud cases—insider trading, kickbacks and bribes, false accounting—implicated the company’s chief executive officer and/or chief financial officer. The recession, which was triggered by illegal and unwise banking practices, cost American shareholders several trillion dollars in stock value losses and is thought to have set the American economy back by a decade and a half. Total costs for the recession have been estimated to be as high as $14 trillion—or about $45,000 per citizen.

You're One Ls," Harold had said. "And congratulations, all of you. As One Ls, you'll be taking a pretty typical course load: contracts; torts; property; civil procedure; and next year, constitutional and criminal law. But you know all this. "What you may not know is that this course load reflects- beautifully, simply- the very structure of our society, the very mechanics of what a society, our particular society, needs to make it work. To have a society, you first need an institutional framework: that's constitutional law. You need a system of punishment: that's criminal. You need to know that you have a system in place that will make those other systems work: that's civil procedure. You need a way to govern matters of domain and ownership: that's property. You need to know that someone will be financially accountable for injuries caused you by others: that's torts. And finally, you need to know that people will keep their agreements, that they will honor their promises: and that is contracts." p116

• Auto and Homeowner Insurance—Choose higher deductibles in order to save on premiums. With high liability limits, these are the best buys in the insurance world. • Life Insurance—Purchase twenty-year level term insurance equal to about ten times your income. Term insurance is cheap and the only way to go; never use life insurance as a place to save money. • Long-Term Disability—If you are thirty-two years old, you are twelve times more likely to become disabled than to die by age sixty-five. The best place to buy disability insurance is through work at a fraction of the cost. You can usually get coverage that equals from 50 to 70 percent of your income. • Health Insurance—The number one cause of bankruptcy today is medical bills; number two is credit cards. One way to control costs is to look for large deductibles to lower your premium. The HSA (Health Savings Account) is a great way to save on premiums. The high deductible creates a much lower premium, and this plan allows you to save for medical expenses in a tax-free savings account.

The Proofs Human society has devised a system of proofs or tests that people must pass before they can participate in many aspects of commercial exchange and social interaction. Until they can prove that they are who they say they are, and until that identity is tied to a record of on-time payments, property ownership, and other forms of trustworthy behavior, they are often excluded—from getting bank accounts, from accessing credit, from being able to vote, from anything other than prepaid telephone or electricity. It’s why one of the biggest opportunities for this technology to address the problem of global financial inclusion is that it might help people come up with these proofs. In a nutshell, the goal can be defined as proving who I am, what I do, and what I own. Companies and institutions habitually ask questions—about identity, about reputation, and about assets—before engaging with someone as an employee or business partner. A business that’s unable to develop a reliable picture of a person’s identity, reputation, and assets faces uncertainty. Would you hire or loan money to a person about whom you knew nothing? It is riskier to deal with such people, which in turn means they must pay marked-up prices to access all sorts of financial services. They pay higher rates on a loan or are forced by a pawnshop to accept a steep discount on their pawned belongings in return for credit. Unable to get bank accounts or credit cards, they cash checks at a steep discount from the face value, pay high fees on money orders, and pay cash for everything while the rest of us enjoy twenty-five days interest free on our credit cards. It’s expensive to be poor, which means it’s a self-perpetuating state of being. Sometimes the service providers’ caution is dictated by regulation or compliance rules more than the unwillingness of the banker or trader to enter a deal—in the United States and other developed countries, banks are required to hold more capital against loans deemed to be of poor quality, for example. But many other times the driving factor is just fear of the unknown. Either way, anything that adds transparency to the multi-faceted picture of people’s lives should help institutions lower the cost of financing and insuring them.

A good metric is a ratio or a rate. Accountants and financial analysts have several ratios they look at to understand, at a glance, the fundamental health of a company. You need some, too. There are several reasons ratios tend to be the best metrics: • Ratios are easier to act on. Think about driving a car. Distance traveled is informational. But speed—distance per hour—is something you can act on, because it tells you about your current state, and whether you need to go faster or slower to get to your destination on time. • Ratios are inherently comparative. If you compare a daily metric to the same metric over a month, you’ll see whether you’re looking at a sudden spike or a long-term trend. In a car, speed is one metric, but speed right now over average speed this hour shows you a lot about whether you’re accelerating or slowing down. • Ratios are also good for comparing factors that are somehow opposed, or for which there’s an inherent tension. In a car, this might be distance covered divided by traffic tickets. The faster you drive, the more distance you cover—but the more tickets you get. This ratio might suggest whether or not you should be breaking the speed limit.

suggest funding college, or at least the first step of college, with an Educational Savings Account (ESA), funded in a growth-stock mutual fund. The Educational Savings Account, nicknamed the Education IRA, grows tax-free when used for higher education. If you invest $2,000 a year from birth to age eighteen in prepaid tuition, that would purchase about $72,000 in tuition, but through an ESA in mutual funds averaging 12 percent, you would have $126,000 tax-free. The ESA currently allows you to invest $2,000 per year, per child, if your household income is under $220,000 per year. If you start investing early, your child can go to virtually any college if you save $166.67 per month ($2,000/year). For most of you, Baby Step Five is handled if you start an ESA fully funded and your child is under eight. If your children are older, or you have aspirations of expensive schools, graduate school, or PhD programs that you pay for, you will have to save more than the ESA will allow. I would still start with the ESA if the income limits don’t keep you out. Start with the ESA because you can invest it anywhere, in any fund or any mix of funds, and change it at will. It is the most flexible, and you have the most control.

{The final resolutions at Robert Ingersoll's funeral, quoted here} Whereas, in the order of nature -- that nature which moves with unerring certainty in obedience to fixed laws -- Robert G. Ingersoll has gone to that repose which we call death. We, his old friends and fellow-citizens, who have shared his friendship in the past, hereby manifest the respect due his memory. At a time when everything impelled him to conceal his opinions or to withhold their expression, when the highest honors of the state were his if he would but avoid discussion of the questions that relate to futurity, he avowed his belief; he did not bow his knee to superstition nor countenance a creed which his intellect dissented. Casting aside all the things for which men most sigh -- political honor, the power to direct the futures of the state, riches and emoluments, the association of the worldly and the well- to-do -- he stood forth and expressed his honest doubts, and he welcomed the ostracism that came with it, as a crown of glory, no less than did the martyrs of old. Even this self-sacrifice has been accounted shame to him, saying that he was urged thereto by a desire for financial gain, when at the time he made his stand there was before him only the prospect of loss and the scorn of the public. We, therefore, who know what a struggle it was to cut loose from his old associations, and what it meant to him at that time, rejoice in his triumph and in the plaudits that came to him from thus boldly avowing his opinions, and we desire to record the fact that we feel that he was greater than a saint, greater than a mere hero -- he was a thoroughly honest man. He was a believer, not in the narrow creed of a past barbarous age, but a true believer in all that men ought to hold sacred, the sanctity of the home, the purity of friendship, and the honesty of the individual. He was not afraid to advocate the fact that eternal truth was eternal justice; he was not afraid of the truth, nor to avow that he owed allegiance to it first of all, and he was willing to suffer shame and condemnation for its sake. The laws of the universe were his bible; to do good, his religion, and he was true to his creed. We therefore commend his life, for he was the apostle of the fireside, the evangel of justice and love and charity and happiness. We who knew him when he first began his struggle, his old neighbors and friends, rejoice at the testimony he has left us, and we commend his life and efforts as worthy of emulation.

[Hyun Song Shin] most accurately portrayed the state of the global economy. 'I'd like to tell you about the Millennium Bridge in London,' he began…'The bridge was opened by the queen on a sunny day in June,' Shin continued. 'The press was there in force, and many thousands of people turned up to savor the occasion. However, within moments of the bridge's opening, it began to shake violently.' The day it opened, the Millennium Bridge was closed. The engineers were initially mystified about what had gone wrong. Of course it would be a problem if a platoon of soldiers marched in lockstep across the bridge, creating sufficiently powerful vertical vibration to produce a swaying effect. The nearby Albert Bridge, built more than a century earlier, even features a sign directing marching soldiers to break step rather than stay together when crossing. But that's not what happened at the Millennium Bridge. 'What is the probability that a thousand people walking at random will end up walking exactly in step, and remain in lockstep thereafter?' Shin asked. 'It is tempting to say, 'Close to Zero' ' But that's exactly what happened. The bridge's designers had failed to account for how people react to their environment. When the bridge moved slightly under the feet of those opening-day pedestrians, each individual naturally adjusted his or her stance for balance, just a little bit—but at the same time and in the same direction as every other individual. That created enough lateral force to turn a slight movement into a significant one. 'In other words,' said Shin, 'the wobble of the bridge feeds on itself. The wobble will continue and get stronger even though the initial shock—say, a small gust of wind—had long passed…Stress testing on the computer that looks only at storms, earthquakes, and heavy loads on the bridge would regard the events on the opening day as a 'perfect storm.' But this is a perfect storm that is guaranteed to come every day.' In financial markets, as on the Millennium Bridge, each individual player—every bank and hedge fund and individual investor—reacts to what is happening around him or her in concert with other individuals. When the ground shifts under the world's investors, they all shift their stance. And when they all shift their stance in the same direction at the same time, it just reinforces the initial movement. Suddenly, the whole system is wobbling violently. Ben Bernanke, Mervyn King, Jean-Claude Trichet, and the other men and women at Jackson Hole listened politely and then went to their coffee break.

We had heard rumours of what people referred to as a ‘phantom accounting system’, also called zappers and phantom ware. This phenomenon was unheard of in South Africa at the time. The more formal term used to describe this kind of criminal financial-management software is a ‘sales-suppression system’. The Organisation for Economic Cooperation and Development (OECD), in which South Africa has observer status, issued a guide on these systems in 2013.10 On the surface, the technology seems like a supposedly normal accounting system, used mainly by retailers. It has all the expected features: it records stock, sales, invoices, receipts and taxes. It can print daily, weekly and monthly accounting records. Yet the software has a feature that can blank out certain sales and receipts. You can set it to suppress, for instance, every fourth sale, or random sales of a particular value, whichever you prefer. The effect is that, on paper, your stock, sales and receipts would balance for tax purposes. All you would have to do is click on a secret place on the screen, or type a particular code on the keyboard, and the unrecorded sales and receipts would reflect. One would then be able to take this money out of the company’s takings for the day, week or month, and people would be none the wiser.

Gone are those days when media platforms were available to few individuals like politicians, movie stars, artists,sports sensations, civil right activists, and religious scholars. =Today social media gives people an easy way to almost everything =It is very easy to learn from others who are experts and professionals,Regardless of your location and education background you can educate yourself, without paying for it. =It even reveals good and Mabošaedi of the most respected people who are role models to others = You can share your issues with the community and get help within an hour . = The main advantage of the social media is that you update yourself from the latest happenings around in the world. = you can promote your business to the largest audience and even employ people But it can also damage your life for good = Since anyone can create a fake account and do anything without being traced, it has become quite easy for people to frustrate others and do a damage to their names or life. = Personal data and privacy can easily be hacked and shared on the Internet. Which can make financial losses and loss to personal life. Similarly, identity theft is another issue that can give financial losses to anyone by hacking their personal accounts. This is one of the dangerous disadvantages of the social media and it even made people kill them selfs. = Addiction destroyed many families and employments.

Well, Gordon assigned me to write a major piece of software for the Apple Macintosh. Financial spreadsheet, accounting, that sort of thing, powerful, easy to use, lots of graphics. I asked him exactly what he wanted in it, and he just said, ‘Everything. I want the top piece of all-singing, all-dancing business software for that machine.’ And being of a slightly whimsical turn of mind I took him literally. “You see, a pattern of numbers can represent anything you like, can be used to map any surface, or modulate any dynamic process—and so on. And any set of company accounts are, in the end, just a pattern of numbers. So I sat down and wrote a program that’ll take those numbers and do what you like with them. If you just want a bar graph it’ll do them as a bar graph, if you want them as a pie chart or scatter graph it’ll do them as a pie chart or scatter graph. If you want dancing girls jumping out of the pie chart in order to distract attention from the figures the pie chart actually represents, then the program will do that as well. Or you can turn your figures into, for instance, a flock of seagulls, and the formation they fly in and the way in which the wings of each gull beat will be determined by the performance of each division of your company. Great for producing animated corporate logos that actually mean something. “But the silliest feature of all was that if you wanted your company accounts represented as a piece of music, it could do that as well. Well, I thought it was silly. The corporate world went bananas over it.

In other words, you need to be a bureaucracy in order to survive one. This is the overwhelming narrative of modern American economics, that the individual, particularly the individual without a lot of money, is inherently overmatched. He’s a loser. And if he falls into any part of the machine, he goes straight to the bottom. And then there’s the most disturbing truth of all. People assume that a system that favors the rich likes rich people. This isn’t true. Our bureaucracies respond to the money rich people have, and they bend to the legal might the rich can hire, but they don’t give a damn about rich people. You can be rich and still fall into any one of a dozen financial/legal meat grinders, from an erroneously collapsed credit score to a robo-signed foreclosure to a stolen identity to a retirement account vaporized by institutional theft and fraud. The system eats up rich people, too, because it’s not concerned with protecting any individuals, even the rich ones. These bureaucracies accomplish just two things: they make small piles of money smaller and big piles of money bigger. It’s a system that doesn’t care whose hands end up holding the bag, or how long those hands get to hold the bag. It just relentlessly creates and punishes losers, who get to sit beneath an ever-narrowing group of winners, who may or may not stay on top for long. What does get preserved, in all cases, is a small constellation of sprawling, interconnected financial companies, whose names and managements may change (Bear becomes Chase, Wachovia becomes Wells Fargo, etc.), but whose entrenched influence remains the same. In other words, this is a machine that loves and protects money but somehow hates all people.

If Jim was back at the imaginary dinner party, trying to explain what he did for a living, he'd have tried to keep it simple: clearing involved everything that took place between the moment someone started at trade — buying or selling a stock, for instance — and the moment that trade was settled — meaning the stock had officially and legally changed hands. Most people who used online brokerages thought of that transaction as happening instantly; you wanted 10 shares of GME, you hit a button and bought 10 shares of GME, and suddenly 10 shares of GME were in your account. But that's not actually what happened. You hit the Buy button, and Robinhood might find you your shares immediately and put them into your account; but the actual trade took two days to complete, known, for that reason, in financial parlance as 'T+2 clearing.' By this point in the dinner conversation, Jim would have fully expected the other diners' eyes to glaze over; but he would only be just beginning. Once the trade was initiated — once you hit that Buy button on your phone — it was Jim's job to handle everything that happened in that in-between world. First, he had to facilitate finding the opposite partner for the trade — which was where payment for order flow came in, as Robinhood bundled its trades and 'sold' them to a market maker like Citadel. And next, it was the clearing brokerage's job to make sure that transaction was safe and secure. In practice, the way this worked was by 10:00 a.m. each market day, Robinhood had to insure its trade, by making a cash deposit to a federally regulated clearinghouse — something called the Depository Trust & Clearing Corporation, or DTCC. That deposit was based on the volume, type, risk profile, and value of the equities being traded. The riskier the equities — the more likely something might go wrong between the buy and the sell — the higher that deposit might be. Of course, most all of this took place via computers — in 2021, and especially at a place like Robinhood, it was an almost entirely automated system; when customers bought and sold stocks, Jim's computers gave him a recommendation of the sort of deposits he could expect to need to make based on the requirements set down by the SEC and the banking regulators — all simple and tidy, and at the push of a button.

Many models are constructed to account for regularly observed phenomena. By design, their direct implications are consistent with reality. But others are built up from first principles, using the profession’s preferred building blocks. They may be mathematically elegant and match up well with the prevailing modeling conventions of the day. However, this does not make them necessarily more useful, especially when their conclusions have a tenuous relationship with reality. Macroeconomists have been particularly prone to this problem. In recent decades they have put considerable effort into developing macro models that require sophisticated mathematical tools, populated by fully rational, infinitely lived individuals solving complicated dynamic optimization problems under uncertainty. These are models that are “microfounded,” in the profession’s parlance: The macro-level implications are derived from the behavior of individuals, rather than simply postulated. This is a good thing, in principle. For example, aggregate saving behavior derives from the optimization problem in which a representative consumer maximizes his consumption while adhering to a lifetime (intertemporal) budget constraint.† Keynesian models, by contrast, take a shortcut, assuming a fixed relationship between saving and national income. However, these models shed limited light on the classical questions of macroeconomics: Why are there economic booms and recessions? What generates unemployment? What roles can fiscal and monetary policy play in stabilizing the economy? In trying to render their models tractable, economists neglected many important aspects of the real world. In particular, they assumed away imperfections and frictions in markets for labor, capital, and goods. The ups and downs of the economy were ascribed to exogenous and vague “shocks” to technology and consumer preferences. The unemployed weren’t looking for jobs they couldn’t find; they represented a worker’s optimal trade-off between leisure and labor. Perhaps unsurprisingly, these models were poor forecasters of major macroeconomic variables such as inflation and growth.8 As long as the economy hummed along at a steady clip and unemployment was low, these shortcomings were not particularly evident. But their failures become more apparent and costly in the aftermath of the financial crisis of 2008–9. These newfangled models simply could not explain the magnitude and duration of the recession that followed. They needed, at the very least, to incorporate more realism about financial-market imperfections. Traditional Keynesian models, despite their lack of microfoundations, could explain how economies can get stuck with high unemployment and seemed more relevant than ever. Yet the advocates of the new models were reluctant to give up on them—not because these models did a better job of tracking reality, but because they were what models were supposed to look like. Their modeling strategy trumped the realism of conclusions. Economists’ attachment to particular modeling conventions—rational, forward-looking individuals, well-functioning markets, and so on—often leads them to overlook obvious conflicts with the world around them.