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Archive for August, 2009

Bill Black on Modern Accounting Fraud

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  • Accounting fraud creates short term accounting profits followed by huge losses.
  • At its peak 40% of mortgages in the United States were not prime!
  • The average CFO in America lasts ~ 3 years. If your rivals engage in accounting fraud and you do not then you last much less than that average…maybe a quarter or 2. Bad ethics drive good ethics out of the market.

Bruce Bartlett’s The GOP’s Misplaced Rage is another lens on the politics behind the real estate bubble.

Written by admin

August 17th, 2009 at 8:48 am

Posted in bubbles