As you all know, unless you live under a rock, yesterday the Silicon Valley witnessed one of the most saddening days in the short yet prolific history of the tech industry as we know it. Steve Jobs resigned as the CEO of Apple, Inc, citing health issues and the fact that he had always promised he would step down when he felt he could not longer meet his duties as chief executive officer.
The way that this was received by the media and [not so knowledgable] Apple followers was just outright ridiculous. On every news channel, the current program was interrupted to make the announcement as if our President had been assassinated; facebook was flooded with "goodbye Steve" status updates; every news article calls this a "shocking" or "stunning" resignation. Apple stock fell 7% after hours, and some analysts proclaimed the end of Apple as we know it.
Really? Seriously? This is surprising? Huh? Who is surprised by this? We are talking about a near 60 year old man that is a mere 3 years removed from liver cancer and a liver transplant who suffers from acute malabsorption and hasn't technically run the company since it's stock broke $150. That would be Tim Cook, which brings me to my next point. Apple is done? First, the day-to-day operations at Apple have been the responsibility of Tim Cook for several years, and Johnny Ive (head of Industrial Design) is the mastermind behind the great products that have made Apple what it is. Steve Jobs was the visionary, the marketing master, the guy everyone anxiously awaited to hear at product releases. NEWSFLASH: Steve Jobs is still the Chairman of the Board. Steve Jobs is still the visionary. Tim Cook is still running the company. And if anyone believes that Apple doesn't have their entire business planned out for the next 3-5 years then that someone knows nothing about the tech world. The way I see it, the resignation of Jobs was symbolically saddening, but fundamentally little changed outside of E cabinet titles.
Don't get me wrong, I'm glad this event is receiving much deserved press as arguably the greatest CEO in the history of our country passes the torch. But for the sake of Apple and the future of the company, they went from having the greatest CEO in the country, Steve Jobs, to the greatest CEO in the country, Tim Cook. Sorry, Google.
Thursday, August 25, 2011
Wednesday, August 24, 2011
Another Factoid: US Debt and what it means
For those of you who I haven't met and don't know who the eff I am, let me preface this by saying I am currently working for Grant Thornton as an Audit Intern. Every week in our work inboxes, we get weekly updates and publications about important changes in the financial world and how it would affect Accounting practices and standards. Today this blurb came up in my feed and I thought it would be interesting to share with the rest of you. The blurb:
Current practice issue
U.S. Treasury rates still considered to be “risk-free”
On August 5, 2011, Standard & Poor’s (S&P) lowered its long-term sovereign credit rating of the United States from AAA to AA+. In a June 2009 document, “Understanding Standard and Poor’s Rating Definitions,” S&P noted that an AA+ rating differs from an AAA rating by only a small degree and that no global corporate debtor with an AA+ credit rating has defaulted on its debt between 1981 and 2008. Additionally, neither of the other two major rating agencies has lowered its long-term outlook on U.S. obligations.
Although a credit rating of AA+ is one level below an AAA rating, we believe that U.S. Treasury rates would still be considered a “risk-free interest rate” and a “benchmark interest rate” under U.S. GAAP. U.S. Treasury rates can still be considered a “risk-free interest rate” when such rate is required for measurement purposes under the FASB Accounting Standards Codification® (ASC or Codification) because of the information noted above. U.S. Treasury rates can also still be considered a “benchmark interest rate,” as defined in the Codification, because these rates continue to be a “widely recognized and quoted rate in an active financial market that is broadly indicative of the overall level of interest rates attributable to high-credit-quality obligors in that market.”
While S&P’s downgrade of U.S. treasuries has no impact on their use as a risk-free interest rate or benchmark interest rate, there may be other financial reporting implications of this downgrade, including enhanced disclosures.
Personally this gives me great hope that even though the U.S is in a major debt crisis, we can bounce back from all of this madness. While U.S treasuries aren't provided the best returns (to say the least), I have reasonable assurance that whatever return is promised will in fact be paid out (see what I did there?) Even with China as our biggest debt holder, I feel the U.S. will do everything it can to remain in China's good grace. Besides, they knew this day was coming.
2 Posts in 2 days. Let's keep this blog alive.
Current practice issue
U.S. Treasury rates still considered to be “risk-free”
On August 5, 2011, Standard & Poor’s (S&P) lowered its long-term sovereign credit rating of the United States from AAA to AA+. In a June 2009 document, “Understanding Standard and Poor’s Rating Definitions,” S&P noted that an AA+ rating differs from an AAA rating by only a small degree and that no global corporate debtor with an AA+ credit rating has defaulted on its debt between 1981 and 2008. Additionally, neither of the other two major rating agencies has lowered its long-term outlook on U.S. obligations.
Although a credit rating of AA+ is one level below an AAA rating, we believe that U.S. Treasury rates would still be considered a “risk-free interest rate” and a “benchmark interest rate” under U.S. GAAP. U.S. Treasury rates can still be considered a “risk-free interest rate” when such rate is required for measurement purposes under the FASB Accounting Standards Codification® (ASC or Codification) because of the information noted above. U.S. Treasury rates can also still be considered a “benchmark interest rate,” as defined in the Codification, because these rates continue to be a “widely recognized and quoted rate in an active financial market that is broadly indicative of the overall level of interest rates attributable to high-credit-quality obligors in that market.”
While S&P’s downgrade of U.S. treasuries has no impact on their use as a risk-free interest rate or benchmark interest rate, there may be other financial reporting implications of this downgrade, including enhanced disclosures.
Personally this gives me great hope that even though the U.S is in a major debt crisis, we can bounce back from all of this madness. While U.S treasuries aren't provided the best returns (to say the least), I have reasonable assurance that whatever return is promised will in fact be paid out (see what I did there?) Even with China as our biggest debt holder, I feel the U.S. will do everything it can to remain in China's good grace. Besides, they knew this day was coming.
2 Posts in 2 days. Let's keep this blog alive.
Tuesday, August 23, 2011
Facebook finally getting it
http://finance.yahoo.com/news/Facebook-to-let-users-apf-2207684620.html?x=0&sec=topStories&pos=6&asset=&ccode=
Came across this article on Yahoo, and thought I'd share some of my personal insight/opinion on the matter.
Honestly, it's about damn time Facebook enacted something of this nature. I was personally sick and tired of being tagged in drunken videos and pictures that I didn't want made public to Friends, friends of friends, and anyone who happened to stumble across my page. Although I took the time to sift through and change my privacy settings, many people are either too oblivious or don't want to spend ten minutes changing the Facebook settings themselves. I didn't find changing the settings all too difficult, but I can't say the same for other users' FB savvy. My reasons for changing my privacy settings related to the growing reality that employers creep through potential hires' pages. While I may disagree with the reasoning behind this, it has become a sad reality. For me and many others, Facebook is a place to interact and socialize with my friends, not to display my prowess in school or the workplace. That's what my LinkedIn account is for. I think Facebook is making a step in the right direction concerning it's user privacy policies. For me, this article has been "liked".
Came across this article on Yahoo, and thought I'd share some of my personal insight/opinion on the matter.
Honestly, it's about damn time Facebook enacted something of this nature. I was personally sick and tired of being tagged in drunken videos and pictures that I didn't want made public to Friends, friends of friends, and anyone who happened to stumble across my page. Although I took the time to sift through and change my privacy settings, many people are either too oblivious or don't want to spend ten minutes changing the Facebook settings themselves. I didn't find changing the settings all too difficult, but I can't say the same for other users' FB savvy. My reasons for changing my privacy settings related to the growing reality that employers creep through potential hires' pages. While I may disagree with the reasoning behind this, it has become a sad reality. For me and many others, Facebook is a place to interact and socialize with my friends, not to display my prowess in school or the workplace. That's what my LinkedIn account is for. I think Facebook is making a step in the right direction concerning it's user privacy policies. For me, this article has been "liked".
Subscribe to:
Posts (Atom)