Toil and Trouble → Cauldron of Deceit

An interesting point, that is rarely touched upon, regarding The Street and accounting practices, is that there has been a shift in thinking from "what is specifically allowed", to "what is not disallowed". In other words, if there is no set, or pending regulation prohibiting specific accounting procedures...then why not try it.
Its still all about greed, but its been a mindset that has been eroding what passes for ethics in the corporate world.

You are correct that the change in the rules of the game were changed in the early 1990's to allow this sort of stuff. Historically it starts oh about the time Jimmy Carter was president. Over the last 8 years it was very easy to juggle the number kind of like a real estate limited partnership under the tax laws of the 1980's. Sad thing is young executives thought this was a way of business companies that stood up and didn’t do this didn’t get the venture capital or the opportunity to actually go public during the boom days. I know the late 1990's was a time in America were the honest folks were punished if you were moving up the ladder in a company or worse if you had a small business and were trying to grow. Basically you were encouraged to juggle your books.

The most positive thing is out of the chaos of this many of these companies will be forced into liquidation. They will leave some real bargains as for as what has been done as far as infrastructure if the capital is available to do this correct this time. Unfortunately infrastructure like WorldCom is going to the baby bells. I prefer SBC because if you love them or hate them they always provide average service its never up or down. Some good things though can come out of this bone pile I believe in the long run.

The SEC chairman also announced today folks would be facing financial penalties though not a pure Death sentence like I would like. Financial fines and sentences work with white collar because jail time doesn’t work with white-collar folks nor keep them honest. You must understand white collar does understand in our judicial system you have two sides to the law and if you hire the best liar I mean lawyer you many times can win or cop a favorable plea. You get tough with the financial penalties and make allot of them stick well you weak backboned accountant and slick talking execs are more focused into line. The consultants forget it most are failed CEO's and CFO's who are flawed and failed for a reason. They also have little place in the restructuring of this financial mess.

I also am all for the legal firms and the security firms that are the real devils advocate of the whole situation getting what’s coming to them also. Quite a few attorneys being dis-bared would be fine.

said by mr sean:

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An interesting point, that is rarely touched upon, regarding The Street and accounting practices, is that there has been a shift in thinking from "what is specifically allowed", to "what is not disallowed". In other words, if there is no set, or pending regulation prohibiting specific accounting procedures...then why not try it.
Its still all about greed, but its been a mindset that has been eroding what passes for ethics in the corporate world.

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I agree with you completely, but I would like to extend that line of reasoning to the consumers as well. Companies are not the only ones who are greedy and will take advantage of whatever they can. People do it too. Just look at all the insurance fraud that takes place. People will stop at nothing when it comes to a quick buck.

So, what you really meant to say, was it started with Reaganomics. Good, I wanted to clear that up....

Ah yes, "Greed is Good."

Naw the seed was planted in Jimmy carters day but came to bloom with both Mr. Clinton's in the White House!!!

Always remember the Mantra:

Rule #1:
Anything bad = Democrats fault
Anything good = Republican's credit

Rule #2: If Rule #1 is wrong, edit/change/modify to suit, then see Rule #1

Frankly hate to tell you this but democrats and republicans are both whores to this anyone involved in this knows you pay both sets of whores to get your legislation though.

Anyway the jimmy carter time line is when FASB started heading or being legislativly pushed in this direction.

And the 80's is when it came into effect, and was more deregulated in the 90's by the "new" Congress....

said by jethrogump:

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Financial fines and sentences work with white collar because jail time doesn’t work with white-collar folks nor keep them honest.

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If you believe that, your head is too far up your ass for rational thought to survive.

said by jethrogump:

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Naw the seed was planted in Jimmy carters day but came to bloom with both Mr. Clinton's in the White House!!!

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How does your revisionist history explain the fact that all these improprieties began after the Republicans captured the House and Senate in 1994? And what does Jimmy Carter have to do with this? Who do you blame next,Franklin Roosevelt? This isn't a Bear market, it's a Bush market. It began when Republicans controlled the White House, House, and Senate, and before the impact of Sept 11 .

Ideologically blinded jackasses like yourself contributed to this disaster, but you don't have the balls to admit it.

[text was edited by author 2002-07-02 03:22:12]