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Tag: Goldman Sachs

  • Study Finds Long, Working Hours Kill Nearly a Million Individuals a Year

    According to the WHO (World Health Organization), long-working hours are directly attributed to the death’s of thousands, upon thousands, upon thousands in global cities (check out this past year, alone). We’re talking about nearly a million people in 2016 alone. The study – again conducted by the incredibly prestigious WHO and cited in BBC News – has some truly alarming statistics. This global survey contains data that is some of the first of its kind and begins gathering data to reach the hypothesis that was likely reached as early as 2016 (BBC News Service).

    As this research was being conducted all the way dating back to 2016, it’s vital to note this takes into account labor market conditions mostly prior to the global, COVID-19 pandemic. Following the aftermath of the pandemic, we’ve seen companies adapt more of a hybrid office schedule for employees. We’ve even seen some companies abandon office schedules altogether (at least for the time being). Perhaps once these working conditions began, it was somewhat refreshing to those who commuted to the office everyday. However, as other studies have shown, while many really didn’t mind working from home, some individuals who were previously content with their weekly schedules became increasingly uncomfortable. Nonetheless, as labor market conditions are returning closer to pre-pandemic times, we can likely expect to see a bit more hybrid working schedules, but largely the same pre-pandemic conditions as in 2016 (BBC News Service).

    Some Alarming Conclusions

    Referring back to that 2016 study done by the WHO and initially reported on by BBC News, of the various alarming statistics, the very first one jumps out: 745,000 people died in 2016 as a result of stroke and heart disease due to long working hours. The article goes on to cite several egregious examples of worker abuse. Lora Jones, a 22 year-old described her initial role at a digital marketing firm as “cult-like”, regarding their adherence to a 72-hour minimum work week (Jones, BBC News).

    While this may not surprise many, Goldman Sachs was thrown under the rug for overworking entry-level analysts. One report details entry-level analysts joining together to have a discussion with their managers at Goldman. They asked for an 80-hour work week cap, calling their current working conditions “abusive” and even “inhumane”. Nonetheless, in a subsequent BBC Report, Goldman CEO David Solomon had no problem with – now – a 95-hour work week. While applauding the courage of the entry-level personnel, Solomon noted “going an extra mile can go a long way”. Everyone reading this should understand the meaning of that pretty clearly.

    Furthermore, the research compared those working a 55-hour work week with those working 35-40 hours. It found that those working a 55-hour work week had a 35% higher risk of stroke and a 17% higher risk of dying from heart disease, compared to those working 35-40 hours.

    A final study, conducted by the International Labour Organization (ILO), concluded men were clearly at a higher risk. Specifically, they reported nearly three quarters of those that died due to working long hours were middle-aged or older men.

    What Will The Future Impact Be?

    BBC News continued with additional regurgitations of the same message; there’s a renewed interest in debating US working class conditions. Reports not cited by BBC show CEOs and executives taking great interest in the happiness of their everyday staff. With that, it’s important to note we’re not suggesting these BCC reports are fair portrayals of the average executive attitude, or average company culture. As we noted in the beginning, a key impact will be many companies adapting a hybrid work routine. This should appease both employees who don’t mind working from home and those who want to be in the office.

    While hybrid work schedules aren’t necessarily great news for CRE investors, they are already a reality. This isn’t something companies are considering doing in the long-run; this is something several big companies have pledged to. The list is likely to only keep growing. These positive changes, combined with a renewed interest in publicly debating this topic, bodes well for the working class. For bullish CRE investors, perhaps not so much.

  • South Korea Responds After China Launches Cryptocurrency Exchange Restrictions

    Following China’s statement of new restrictions and regulations they are placing on Bitcoin, which sent cryptocurrency exchanges tumbling, South Korea responded by rolling out their own restrictions. On June 13th, 2021, The Korea Times reported South Korea’s Financial Services Commission (FSC) released a public statement that would force banks to classify clients with cryptocurrency in their portfolio as “high-risk”. Those individuals would in turn be subject to more stringent monitoring and trading rules. South Korea’s goal in doing this was made abundantly clear: reducing the regulatory risks posed to banks servicing crypto firms (Hwang, The Korea Times).

    The FSC’s new guidelines make it mandatory for banks to report high-volume crypto transactions from suspicious entities. Additionally, they are requiring impacted firms – current and future – to implement a KYC (Know Your Customer) guideline prior to partnering with any crypto exchanges. As mentioned, this comes directly on the heels of China (the largest economy in the world) announcing rigorous cryptocurrency trading regulations. South Korea appears to be aligning themselves more closely with their neighbor, however other countries and governments have been looking at cryptocurrency exchange trading from a different perspective.

    Goldman Sachs responded to the news very quickly, announcing to their shareholders that they will expand into Ether in order to limit their exposure to just Bitcoin (Singh, MINT). The legendary investment bank will additionally offer futures trading and options for Ether, but they do not appear to have any plans of exiting the crypto space. That’s because there is still plenty of room for capitalization. To some, volatility suggests greater return opportunity, rather than enhanced risk potential. Additionally, as Mathew McDermott, Goldman Sachs’ Global Head of Digital Assets, announced the firm will be offering services to facilitate trades involved with exchange-traded notes linked to Bitcoin (Singh, MINT).

    When it comes to other governments, many emerging markets and emerging economies in particular are looking to expand cryptocurrency acceptance. The following day, June 14th, 2021, Tanzania’s President suggested the country’s central bank should explore cryptocurrency. “We have witnessed the emergence of a new journey through the internet,” Samia Suluhu Hassan – President of Tanzania – said, also adding “the central bank should be ready for the changes and not be caught unprepared” (Haig, Cointelegraph).

    The same desire was echoed by several Latin American countries in particular, most notably El Salvador and Paraguay, where Bitcoin has been mandated as legal tender. The President of Tanzania may have more of a realistic pulse on crypto trading, unlike China and South Korea, as she appears very cognizant of the profound emergence of digital currency as a widely popular, booming global investment tool. Rather than trying to restrict and limit trading practices, which can be extremely important in certain instances and definitely not meant to be underscored, recognizing the uncontrollable phenomenon crypto trading has become is valuable in and of itself. Restricting or attempting to disincentivize investors from participating in this particular market can adversely lead to more fraudulent activity, as investors clearly see a benefit to trading in this market, but are constricted from it because of their country’s regulations. Furthermore, this may lead to some seeking out non-traditional, or even illegal, methods of participating in that market because they have to circumvent rules.