Ah, another distraction, and another blow struck for ignorance.
He’s trying hard to hide something under the flood of bullshit.
As a small business owner, one reason I didnt incorporate in the US was this. Anything more frequent than once yearly is too expensive and time consuming
Let’s only report positive numbers! Yey!
100% employment of employed people! Plus 100% people purchased the things they purchased! Leafing to a 100% perfect economy!
Okay what about canceling student loans then? Right?
Stop reporting so that we don’t see the worsening economy. That’s all. Covid doesn’t happen if nobody reports cases. Fraud and tax dodging doesn’t happen if you cut the IRS’s budget so they can’t investigate. Same old shit, cut oversight so the bad thing magically disappears. You don’t even need a Memory Hole if there’s nothing to put in it.
“if we stopped testing we’d have less cases”
This is just to hide how badly things are going.
I’m conflicted on this one because companies should be transparent, but the current quarterly requirements drive incredibly short sighted decisions aimed exclusively at pumping up the share price every 3 months.
Publicly traded companies don’t plan more than like 3 years ahead because of this pressure.
Dodge v Ford, eBay v Newmark, probably lots of other court decisions, all make share price the only thing that matters to a Board of Directors. Nothing about the workers. Nothing about the community. Nothing about the nation…
Would this help? Not sure. But it would make the 3 month window less dominant.
I’d say there is a healthy debate to be had about this.
The thing that is actually concerning is that it came out of Trumps mouth out of the blue, so there is a non zero chance there is a reason beyond the pro and cons of this.
The longer the reporting period, the greater opportunity to run a con within that period.
That’s also why Trump Org is privately held.
Listening to today’s episode of the Prof G podcast there is a new exchange trying to open that is lobbying for the same 6 month reporting structure. So it’s some sort of payoff in sure.
I’m going to go the opposite way and say that their books should be more open than they currently are.
Gonna go out on a limb and say capitalism won’t fix itself if it suddenly looked further ahead. Probably the opposite.
Head crook allows under crooks to cook their books
This is the next step in hiding that you are killing the economy because of your grifting.
If companies stop reporting quarterly, then all of the bad news is going to come all at once at the end of the of most companies fiscal year in the fall. Since it’s every industry, the entire market will surge or sink every fall. If people had insider knowledge, well that’s a yearly wealth transfer from your 401k to the 1%.
I’m just thinking that Taco wants it to be timed right after things, like, oh, say, midterm elections.
Next up will be “get rid of annual reporting”. They’ll change it to be “every 4 years, the first Tuesday after the presidential election”.
If companies stop reporting quarterly, then all of the bad news is going to come all at once at the end of the of most companies fiscal year in the fall.
Also, it isn’t as though they won’t have internal reports. And given the deplorable state of the SEC, I have to assume this would lead to some wild insider trading in between annual releases.
If people had insider knowledge, well that’s a yearly wealth transfer from your 401k to the 1%.
It’s arguably worse than that. People passing around unregulated reports under the table can still lie to one another with abandon. So the black market for inside info is ripe for fraud and scams which can’t even be prosecuted normally, because its not information anyone has to report out to a public commission.
If I want to come in and release the “Double Super Secret Real Microsoft Numbers” and spread it around, I can effectively manipulate the price of the stock based on how many people I can dupe into believing my phony figures.
Alternatively, global investors will start to shun the US, because US companies don’t have to be as transparent anymore. Then there is a giant sucking sound of capital out of US markets, and the stock market and dollar tanks.
You would think that a President would want to avoid this, but most of his wealth is now in crypto, and if the dollar tanks his crypto is worth more dollars.
He is so transparently out for his own gain, and those of his Crypto Broligarch friends, over what is best for the country as a whole.
global investors will start to shun the US
Where would investors go instead? The UK, EU, and Japan already eliminated quarterly disclosure requirements.
He also owns a large portion of a publicly traded company and is seeking to be able to obscure his finances there more than they already are.
An awful lot of crypto seems to track along with the American stock market. Maybe not an exact mirror, but if watch big drops/gains in S&P, you’ll usually see big drops/gains in something like BTC, anyway.
Not sure about Taco’s shitcoins, though.
No, but if the dollar tanks then crypto arbitrage bots will make sure the value of the dollar vs. crypto tanks along with it. People invested in crypto (but who live in dollars) get a big win at the expense of everyone else.
You would think that would happen but I doubt it at this point.
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Now, now… “and switching to semiannual instead.”
So they steal all our money twice a year. :)
Good companies will still do quarterly reporting.
I wouldn’t go near ones that refused
So clearly just setting up more corruption
I feel like this is one of those rare cases where Trump and I agree on something, but it’s still ultimately for completely different reasons. I suspect not having to report quarterly will make it easier for his companies to cook the books.
No, this is a horrible idea through and through. Delayed reporting only benefits those with insider information. It isn’t going to change the fundamental problem of so many companies existing solely to enrich investors nor is it going to change all of the bullshit accounting “tricks” that boil down to “fire your staff and say you did more with less”
May I inquire how this could be a good thing? I feel like it could exacerbate problems, but I’m not well versed enough in macroeconomics to make an accurate assessment.
Quarterly reporting makes company leadership focus on short term gains over the long term health of the company, leading to frequent layoffs, selloffs and other actions that hurt both the employees and the economy as a whole.
Quarterly reporting itself does not force this.
Relatedly, people compensated mostly through stock options will continue to think short term with an emphasis on the stock price of the company for the duration of their particular vesting period.
but then you would need to have reports once every 5 years to actually see much change in their strategies.
We are talking about when they are required to release earnings not the only time they can. I’m pretty sure that lengthening the time wouldn’t really change anything as far as short term profit gain is concerned.
Like I doubt the quarterly earnings calls would go away, shareholders wouldn’t want to go a whole year without hearing from the company, they would just be a lot more lies and fluff.
I assume it is because they draw attention to companies struggling. Easier for him to deflect once a year than it is 4 times a year. If people don’t know what to expect they can blindly throw money into companies all year and not realize they haven’t hit projections in 9 months.
This was my first half sec thought, too, but it would actually be pretty bad. A lot more economic ticket would be happening behind closed doors for months before it would ever have to be released to the public. Insider trading would increase.
And it wouldn’t actually change the short term incentives that drive CEOs to make short term decisions that hurt the long term.
And why do you think it’s a good idea?
Why do you agree?
From the part of ‘It’s not a problem if you can’t see it coming’.
I’m so tired of the headlines. “Trump [something blatantly stupid and in his favor]”
Then stop him.
wtf you want me to do? I’m at work until 4, then I got an hour commute. I’m busy this weekend too.
If they keep us working we won’t ever have time to revolt.
All of a sudden, Taco is down with the CCP?
Yeah, you know he
