If you are an investor, I'll give you soemthing to think about. You know that when the economy was Good under Clinton, many corporations projected their income over and above what they actually earned. It was easy back then, because of the Ever-Expanding and Amazing Economy would always cover you. If not this quarter, then next quarter was sure to be even better.
But now, with the Repubolicans in charge and the economy turing instantly into crap with no end in sight, the SEC and the IRS is looking into corporations overstated incomes, sometimes "wildly" overstated. And that spells disaster on the horizon because you can't fix an overstatement of net value in an economic freefall.
THAT's what happens! And now, with SEC pressure about, large corps have started a brand new round of layoffs that will hit the economy with lost jobs and wages, plus the hit to taxpayers for uneployment and other benefits.
And what about Bush? What's he up to? He's busy reading "The Hungry, Hungry Caterpillar" to pre-school children all over America. He has the time to do this because of his famous 'No-Hands' approach to controlling economic disasters.
posted on June 26, 2002 12:34:01 AM new
"Former Chief Executive Bernie Ebbers resigned earlier this year amid questions about $366 million in personal loans~"
How can you know if the company you want to invest in is being plundered? No way at all.
The brokers the accountants and the government are all ineffective at watching the moral midgets running these companies.
I keep reading that they have to pay big bucks to get qualified CEO's - must be so few that will turn a blind eye to the companies officers looting and join in. That seems a needed qualification today.
If an owner of a little auto shop or a convenience store diverts some assets to personal use without showing them as income they are in big trouble - but these guys take hundreds of millions and call it a forgiven loan.
posted on June 26, 2002 06:04:38 AM new
The reality show that I would watch would be one starring former CEOs/CFOs in prison, sharing cells with Bubba. Listening to their crying when Bubba tells them he plans to "cook their books", on a regular basis, after lights out and in the shower...
Now that might discourage this serious white collar crime, knowing your next "wife" will have a beard.
