What we’re reading (5/22)
“What It Would Mean For The Global Economy If The US Defaults On Its Debt” (Associated Press). “The repercussions of a first-ever default on the federal debt would quickly reverberate around the world. Orders for Chinese factories that sell electronics to the United States could dry up. Swiss investors who own U.S. Treasurys would suffer losses. Sri Lankan companies could no longer deploy dollars as an alternative to their own dodgy currency.”
“Slow Return To Work Pummels Office Stocks” (Wall Street Journal). “Both Vornado and SL Green shares are down more than 30% so far this year, while the broader stock market is higher.”
“Office Workers Don’t Hate The Office. They Hate The Commute.” (New York Times). “For many, the pandemic-era shift to remote work proved that all the schlepping was unnecessary. They can’t unsee all the wasted time, and questioning their morality isn’t going to change that. They aren’t taking a moral stance; they’re just making a rational calculation: They can get a lot more done — in their work lives and in the rest of their lives — if they skip the commute.”
“Employees Say Returning To The Office Is Breaking The Bank. Here’s What's Costing Them So Much” (Insider). “Frustrated workers are sounding off that cost of office clothes, daily lunches, commuting, and more are all adding up as they start going into the office multiple times per week. Jessica Chou of the Wall Street Journal reported spending between 20% and 30% of her paycheck when asked to report for work at the office.”
“Rigor, Not Speed, Should Define The Silicon Valley Of The Future” (RealClear Markets). “[I]n March 2023, the company [HP] found itself in a British court. At the heart of the case was the 2011 sale by British tech entrepreneur Mike Lynch of Autonomy, the company he founded, to HP for $11.7 billion…Now U.S. authorities are seeking the extradition of Mr. Lynch to the United States. The Justice Department alleges that he misled HP and its shareholders about Autonomy’s financial condition ahead of the sale…[t]his transaction continues to resonate because HP acquired Autonomy at a steep premium, one that many HP shareholders deemed excessive at the time. Later, when HP came to realize the shambolic state of Autonomy, the company had to take a nearly $9 billion write-down…HP’s then-CEO Léo Apotheker admitted in court that he did not read KPMG’s due-diligence reports on Autonomy, or even the company’s quarterly financial statements, before purchasing it. Its then-Chief Financial Officer admitted that she did not read the documents either.”
