Essay Database

The Great Accounting Scam The US government is attacking capitalism under the guise of cracking down on "corporate criminals." Corporate CEOs are being demonized and blamed for the collapsing stock market Bubble. Exploiting the Enron and WorldCom bankruptcies, Washington DC has imposed the most sweeping accounting and securities laws since the 1930s. Unfortunately, the political class that granted itself sweeping new power over corporations lacks even a basic understanding of financial reporting, investing, or the …

…to justify a federal power grab, with budget increases of nearly $800 million for the SEC. An accounting oversight board will not be run by accountants, but will have independent taxation authority over all publicly traded companies. Four large accounting firms will have a permanent, legally impenetrable cartel over the auditing industry. Perhaps this is the best we can expect from a self-aggrandizing political class that is demonstrably incompetent in its own financial and ethical affairs