From: CurtAdams@aol.com
Date: Mon Aug 12 2002 - 13:24:41 MDT
In a message dated 8/12/02 12:15:26, mlorrey@yahoo.com writes:
>One big problem is that a large portion of this 'accounting fraud' is
>simply horse manure being produced for political purposes. Take
>depreciation, for example. Moore's Law illustrates that computer
>hardware and software depreciates in real terms by 50% every 18 months,
>and companies like Enron, Global Crossing, etc were using accounting
>standards that recognised this fact. A few democrat senators and
>congressmonsters wanting their party to win big in this coming election
>only needed to lean on some people at the IRS and SEC to force these
>companies to use the old rules of depreciation, that only let you
>depreciate at rates of less than 10% a year, and voila, the regulators
>have 'discovered' billions and billions of dollars in 'hidden losses'
>that the companies 'fraudulently hid' using 'fraudulent accounting
Um, put on your thinking cap, Mike. The accounting you describe
would *create* fictitious losses, not hide real one.
>This current economic downturn (outside of that produced by 9/11) is as
>much a figment of the Democrat party machine as the 91-92 recession (in
>that situation, DNC selected head of the FDS&LIC jacked up reserve rate
>requirements almost overnight, leading to trillions of dollars in loans
>called in and defaulted on in a short span of time).
What are you smoking? There were huge, ridiculous stock bubbles
in telecom and internet stocks and the Fed has been running a very
loose policy since 1997. There's little use arguing over proper
valuations for GE and Cisco but to say there's *no* basis for
the current downturn is crazy.
(Sorry about the multiple posts recently, folks. I keep hitting the Enter
key and this stupid AOL sends the post through, irrevocably! Yeah,
yeah, I know, get a real ISP...)
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