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BUSINESS IS BRISK AT H & R BLOCK: Block's revenues from income-tax preparation surged 10.5% to more than $2 billion from January 1 through April 15 this year as compared with a year ago.  The company served a record 18.1 million clients, up 2.7%.  The average fee per client rose 9% to $122.

ANA's TEQUILA IS NOT THE REAL ONE, it comes with a twist:  Jose Cuervo is the world's best-selling tequila.  Jose Antonio de Cuervo started making tequila in the Mexican town of Tequila more than 200 years ago.  But now a new tequila has emerged by the name of Ana R. Vda. de Cuervo.  This tequila is produced by a Guadalajara businessman who claims his grandmother was the widow of the son of a great-great-grandson of Senior Jose.  "It's the heritage of my family," he says.  Cuervo International says the company will challenge the use of its Cuervo trademark: "They're trying to steal a brand we have built."  Have a great summer with lots of tequila with or without a twist.

RISK OF STROKE IS SHARPLY ELEVATED WHEN people with underlying problems are startled.  Jumpy movement can break clots loose to lodge in the brain.

WHY HAVE HOUSE PRICES STAYED HIGH amidst downturn in the economy?  House prices dropped during the last recession in 1991.  But not this time!  could it be because of the declining mortgage interest rates?  But interest rates also fell during the last recession.  Yet, that didn't prevent house prices from from declining.  Has the supply of housing units been low?  Prior to 1991, supply of housing was choppy, often resulting in over or under-building of housing units.  But since 1991, there has been a smooth healthy growth in the supply of housing.  Developers, forced by scrutiny from banking regulators, caused by the banking crisis in the late 1980's, become constrained and did not overbuild during the 1990's economic expansion.  What about demand?  The demand for houses depends on such variables as hob growth, growth in personal income, changes in demographics, and the cost of buying housing which includes the actual price and the financing cost.  The user cost of a house includes a mortgage interest rate, a property tax rate, a maintenance cost, a deduction for depreciation, and an expectation about future price appreciation.  Expected appreciation serves to lower the user cost.  Decreases in the user cost are believed to accompany increases in the demand for housing.  Although expectations could, of course, be proven wrong, all indications are that investors and consumers foresee a mild recession and a return to solid economic growth and further appreciation in housing prices.  Therefore, the reason house prices are firm is not so much because of the drop in mortgage interest rates, but for the home-buyers strong expectations of higher future prices of houses. 

the Generalist, a one page publication of the accounting firm of A. R. Kakhsaz Company, is in its seventh year of providing information, presented fairly and accurately, from sources we can depend upon and trust.

THE DOW JONES INDUSTRIALS FINISHED THE month of April 2002 as their worst April performance since 1970.  Investors worries included major uncertainties on mid-east crisis, slow U.S. economic recovery, problems in corporate governance that resulted in, for example, the Enron scandal, stubbornly high prices of fuel, and looming federal-spending deficit that could lead to higher interest rates.  That's despite continuing strength of the consumer confidence throughout the U.S. 

Ali R. Kakhsaz, CPA, MAcc

www.arkpca.com