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Episode 2: Financial Engineering
Paradise Lose Financial Podcast - Episode 2: Financial Engineering
[Links to follow]
How both public and privately-held entities use non-GAAP financial measures to justify wasteful or unprofitable practices.
Inflation is much worse than is officially reported:
BLS Inflation at -0.1%:
Official CPI calculated by the Bureau of Labor Statistics says it stands at -0.1% as of May 2020: https://www.bls.gov/cpi/
ShadowStats Economic Measures
John Williams' ShadowStats alternate calculation based off the way inflation was measured in the 80's puts inflation at closer to 8% currently: http://www.shadowstats.com/alternate_data/inflation-charts
The Chapwood Inflation Index
Calculates inflation in the 50 largest cities in the US, in which cities such as San Jose have inflation measuring at 13% - remember this is per year so over time this trend significantly stunts your purchasing power: https://chapwoodindex.com/
Non-GAAP Measures
Financial figures that are unaudited and do not comply with Generally Accepted Accounting Principles): https://www.lutz.us/non-gaap-measures/
EBITDA = Earnings Before Interest, Taxes, Depreciation, & Amortization
Measures such as EBITDA are more "flexible" than GAAP measures such as Net Income. Companies that switch to using EBITDA as a financial measure when they have not done so previously should present a potential red flag for investors and the public: https://www.investopedia.com/terms/e/ebitda.asp
Real vs. Nominal GDP and how GDP uses a "GDP Deflator" instead of CPI to account for inflation
https://www.khanacademy.org/economics-finance-domain/ap-macroeconomics/economic-iondicators-and-the-business-cycle/real-vs-nominal-gdp/a/lesson-summary-real-vs-nominal-gdp
Inflation as Calculated by TPTB for GDP:
GDP (Gross Domestic Product):
https://www.investopedia.com/terms/g/gdp.asp
GDP Deflator:
https://www.investopedia.com/terms/g/gdppricedeflator.asp
Intro song by my childhood friend whose music project is titled "Maine Experiment": https://soundcloud.com/maineexperiment
Please consider becoming a patron to access more in-depth analyses & material focused on financial tools, macroeconomics and financial strength for the individual:
https://www.patreon.com/paradiselostfinancial
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By aColorfulCaucasian
5
22 ratings
Paradise Lose Financial Podcast - Episode 2: Financial Engineering
[Links to follow]
How both public and privately-held entities use non-GAAP financial measures to justify wasteful or unprofitable practices.
Inflation is much worse than is officially reported:
BLS Inflation at -0.1%:
Official CPI calculated by the Bureau of Labor Statistics says it stands at -0.1% as of May 2020: https://www.bls.gov/cpi/
ShadowStats Economic Measures
John Williams' ShadowStats alternate calculation based off the way inflation was measured in the 80's puts inflation at closer to 8% currently: http://www.shadowstats.com/alternate_data/inflation-charts
The Chapwood Inflation Index
Calculates inflation in the 50 largest cities in the US, in which cities such as San Jose have inflation measuring at 13% - remember this is per year so over time this trend significantly stunts your purchasing power: https://chapwoodindex.com/
Non-GAAP Measures
Financial figures that are unaudited and do not comply with Generally Accepted Accounting Principles): https://www.lutz.us/non-gaap-measures/
EBITDA = Earnings Before Interest, Taxes, Depreciation, & Amortization
Measures such as EBITDA are more "flexible" than GAAP measures such as Net Income. Companies that switch to using EBITDA as a financial measure when they have not done so previously should present a potential red flag for investors and the public: https://www.investopedia.com/terms/e/ebitda.asp
Real vs. Nominal GDP and how GDP uses a "GDP Deflator" instead of CPI to account for inflation
https://www.khanacademy.org/economics-finance-domain/ap-macroeconomics/economic-iondicators-and-the-business-cycle/real-vs-nominal-gdp/a/lesson-summary-real-vs-nominal-gdp
Inflation as Calculated by TPTB for GDP:
GDP (Gross Domestic Product):
https://www.investopedia.com/terms/g/gdp.asp
GDP Deflator:
https://www.investopedia.com/terms/g/gdppricedeflator.asp
Intro song by my childhood friend whose music project is titled "Maine Experiment": https://soundcloud.com/maineexperiment
Please consider becoming a patron to access more in-depth analyses & material focused on financial tools, macroeconomics and financial strength for the individual:
https://www.patreon.com/paradiselostfinancial