The Nature of the Accounting

I am one of the Twelve Percenters, and will let the Reader find out what that means. We spent too much for not enough, and round up paying twice for what We should not have bought in the first place. Two Negatives only make a Positive in Mathematics. The Graph shows a Potential which was always too extreme–Never could We have made the almost Ten Percent, even taking very Trick in the Bridge; remember We are a highly developed maximized economy. The loss should never have been presented in shortened form, but allowed to flow from 2000 onward, showing a proper projection of the loss; which was to greatest degree was only loss of Growth; there was no real slippage back into the Dark Ages. I personally know that Menzie Chinn was only trying to get a manageable Graph, but this one leaves a lot to be desired.

I will give this link which is very informative as Tutorial, if not on Specifics. I disagree with the Dodd bill, if for no other reason than anything over 1300 pages should never be passed into law. The Fund is too large initially, and will eventually devolve down on traditional banks, who are not the culprits which should be controlled. Compliance will be almost impossible throughout the context of the bill; fulfillment of some provisions will negate others. You can be positive that anything of such length will have hidden provisions which will nullify the major policy projections desired; meaning traditional banks will follow the Rules, all others will not. Taxpayers really have no one on their Side, and will face a deceptive Accounting protocol. It will get ugly, as Accountants design complex ways to circumvent the regulation.

Please check out this link, which will explain Why 1300+ Pages of regulation will add nothing. They still cannot figure out a correct evaluation for Lehman assets this far into the collapse. The whole situation may prove beyond a doubt that Bear Sterns and Bernie Madoff were only the honest ones. They at least only kept two sets of Books, not the 25-50 sets of Accounting which lied even inside the firm. It is very interesting to note that Regulators can only compare data with that found in other deviant firms, because no one can really find any honest assessments on the Street. Madoff’s storefront Accountant was at least honest enough to admit that he did not know what the hell he was doing. Now, they want to overlay the entire business with a regulatory system which will take 5 years simply to learn, never to be applied. lgl