Monthly Archives: July 2013

HBCU Money™ B-School: Entrepreneurs


Individuals who are willing to take risks in order to develop new products and start new business. They recognize opportunities, enjoy working for themselves and accept challenges.

Source: St. Louis Fed Glossary

What If Warren Buffett Or Bill Gates Donated $2 Billion To HBCUs?


Many people are liberal in principle but reluctant in practice. – John M. Burgess

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Warren Buffett just recently made a donation of $2 billion to the Bill & Melinda Gates Foundation. A foundation it should be noted with a larger endowment than Bill Gates’ alma mater Harvard. This was after it was reported by Bloomberg that Buffett had earned $12.1 billion over the past twelve months. Now, to be clear I firmly believe that nobody should tell another man what they should or are obligated to do with their resources. However, I have real issues with European American liberals always having solutions to fix African American issues and yet interestingly enough none of those solutions ever involve them relinquishing resources to our control and allowing us to become institutionally equitable. Instead, their solutions are often presented more in a manner resembling the savior complex.

In 2006, Warren Buffett made a $31 billion pledge to the Bill & Melinda Gates Foundation. He stated that he was good at making money and that essentially the Gates Foundation would know how to best use it help the masses. That the Gates Foundation does major “philanthropy” in Africa which arguably given Europe and America’s medical history in Africa always raises red flags. There is also the sidebar of research being funded at the University of Pennsylvania on HBCUs and at Rice University on the history of African American towns. The two schools have a combined endowment value of $10.3 billion. An amount over five times the size of all 100 plus HBCUs combined. Have either suggested that the way to help the institutional issues of HBCUs or African America institutionally is to release some of the assets under their control? No, not once. Just 5 percent of that $10.3 billion endowment would allow a $5 million infusion to all 100 HBCUs.

The current net worth of Gates & Buffett is a combined $134 billion according to Bloomberg’s Billionaire Index. Yes, you read that number correctly. They have pushed for the wealthy to sign the “Giving Pledge” where the wealthiest billionaires pledge to give over fifty percent of their wealth to charity. Ironically, in all of that warm and fuzziness not once does it say that any of the wealth will go into the hands of African American controlled charity or institutions. Again, a donation of $2 billion would be equivalent to 1.5 percent of their combined net worths and yet would double the size of HBCU endowments in a single sign of the pen and allow for all 100 plus HBCUs to receive an infusion of $20 million per school. Again, just 1.5 percent.

I want to make it clear that I do not believe these men should or have to give their money to HBCUs or any African American institution. However, I am simply tired of hearing how much equality is desired in this country when we all know equality is an equity of power and power is derived from institutional control of resources. It is also not to say that these men would not give substantially to HBCUs if they were asked which I have no way of knowing whether or not they have or have not been. However, if the Bill & Melinda Gates Foundation is so in touch with the problems going on in the world it bewilders for me to believe they are not aware of the systematic poverty that impairs African American institutions themselves and how empowering them with actual resources would allow them to greatly impact the social and economic fates of millions of African Americans that HBCUs and their communities serve directly or indirectly.

Instead, what has happened and what will continue to happen is HBCUs will get six-figure grants and such from institutions like the Gates’ Foundation or get a report promoting increasing “diversity” as a means of stopping the flow of African Americans from our institutions as the answer to fix revenue shortfalls. In reality, the reason which seems to be often ignored that so many African Americans started having to choose HWCUs was because they had to go where they were offered the most financial assistance which HBCUs were never in position to do given historical funding discrepancies from the public and private polices of European Americans. There is one segment of European American that would gladly just crush African American institutions into oblivion but at least they are honest about it. The other segment seems intent on ignoring the fact that our situation is what it is because of them but are more than willing to help so long as we acknowledge them for saving us. The Great White Hope who talks a good game but when it comes time to really put their money where their mouth is, I have found more noise in an abandoned cemetery at four in the morning in rural West Virginia.

Dr. Clarke once said that in the early 20th century African Americans were debating between their alliances to the Soviet Union or United States. In the end, they realized that the Soviet Union wanted them to be free no more than the United States but they wanted them under their domination. He went on to say that they realized they were not in a battle between an oppressor and liberator but two oppressors with different methods of oppression. I contend much of the same could be applied on a micro scale as it relates to the relationship African Americans have to European American conservatives and liberals. It often pops up when we use the term of choosing between the “lesser of two evils” when deciding whether to vote Democrat or Republican. Maybe, just maybe it is time stop trying to separate the lot and simply view the situation for what it is.

HBCU Money™ Business Book Feature – Time Zones, Communications Networks, and International Trade


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Advances in digital technology have driven large decreases in the costs of data transfer and telecommunications. There is a consequent increase in many kinds of international trade. One of the fastest-growing parts of this industry is “remote maintenance” whereby Indian companies debug software for companies in other parts of the world, often taking advantage of time zone differences to offer overnight service.

In the existing literature on trade theory, however, relatively few attempts have been made to address the theme of communications networks and the role of time zones. The main purpose of this book is to illustrate, with simple models of international trade, how the introduction of communications networks and the utilization of time zone differences can affect both the structure of international trade and world welfare. Other technological aspects of recent international trade (e.g., competition between international standards, the impact of switching costs on imported products’ introduction) are also examined.

HBCU Money™ Dozen Links 7/15 – 7/19


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Did you miss HBCU Money™ Dozen via Twitter? No worry. We are now putting them on the site for you to visit at your leisure. We have made some changes here at HBCU Money™ Dozen. We are now solely focused on research and central bank articles from the previous week.

Research

Recycling & composting reduced annual GHG emissions = to taking almost 34 million cars off the road l EPA Research http://go.usa.gov/bPxB

Desert salt flats could offer new path to green hydrogen fuel l Argonne http://tinyurl.com/kc2yaob

Thinnest, most light-absorbing nano-material created by Stanford researchers l SLAC http://stanford.io/12zyecH

To learn more about our nutrients management research l EPA Research http://ow.ly/n92x2

Gary, IN moves forward with green stormwater management project l IL-IN Sea Grant http://fb.me/16BuDHLwk

“Top 10 supercomputer available to anyone who can ‘boost’ America” | Computer World http://buff.ly/1bsDVl5

Federal Reserve, Central Banks, & Financial Departments

Detroit housing market remains mystery after bankruptcy l Housing Wire http://hwi.re/3gwMwJ

Consumers: Listen to – or watch – basic lessons in economics from our Econ Lowdown series l St. Louis Fed http://bit.ly/ViVxYQ

The Virginia Economy and the Nonprofit Sector in June 2013 l Richmond Fed http://bit.ly/1aZ98g8

A closer look at next week: Spending bills, energy, student loans l Floor Action http://bit.ly/13HjOGz

Professional development opportunities for K-12 teachers in August l Philadelphia Fed http://ow.ly/n93w9

Are Community Banks Being Driven Out of Rural Markets? l St. Louis Fed http://bit.ly/XzK1KR

Thank you as always for joining us on Saturday for HBCU Money™ Dozen. The 12 most important research and finance articles of the week.

The HBCU Money™ Weekly Market Watch


Our Money Matters /\ July 19, 2013

A weekly snapshot of African American owned public companies and HBCU Money™ tracked African stock exchanges.

NAME TICKER PRICE (GAIN/LOSS %)

African American Publicly Traded Companies

Citizens Bancshares Georgia (CZBS) $5.70 (0.00% UNCH)

Radio One (ROIA) $2.20 (2.65% DN)

African Stock Exchanges

Bourse Regionale des Valeurs Mobilieres (BRVM)  207.55 (0.59% UP)

Botswana Stock Exchange (BSE)  8 667.21 (0.02% DN)

Ghana Stock Exchange (GSE)  1 908.21 (59.05% UP)*

Nairobi Stock Exchange (NSE)  123.70 (N/A)

Johannesburg Stock Exchange (JSE) 40 549.40 (1.45% DN)

International Stock Exchanges

New York Stock Exchange (NYSE) 9 610.47 (0.24% UP)

London Stock Exchange (LSE)  3 511.20 (0.06% DN)

Tokyo Stock Exchange (TOPIX)  1 211.98 (0.82% DN)

Commodities

Gold 1 294.30 (0.03% DN)

Oil 108.21 (0.16% UP)

*Ghana Stock Exchange shows current year to date movement. All others daily.

All quotes reported as of 3:00 PM Eastern Time Zone