Who knew??

A Congressional hearing into the workings of the S.E.C. is scheduled soon. People want to know how it was the S.E.C. failed to heed warnings about scammers on Wall Street. Were these smart people just duped??? I don't think so. I believe they chose to look the other way, just like Enron's auditors. Remember them (Arthur Anderson.)? Remember the Kansas City building inspectors and the New York City building inspectors who ignored problems in structures that later failed? Same thing. I once asked a CPA friend how it was that Mexico enjoyed such a high level of corruption in government if the books were audited? His response: "The auditors are in on it." OBVIOUSLY. This woman is looking the other way, but I'm pretty sure she's not an auditor.

Whom do you blame?

From a popular investment newsletter: “Underlying the credit crisis gripping the U.S. and world economies is a crisis of confidence. Blame has been laid at the feet of the U.S. Federal Reserve, and an investment bankers’ brew of toxic financial products. Ultimately, however, it was the supposedly trustworthy rating agencies that got everyone to drink the poisoned Kool-Aid. The sheer fraud and greed of rating agency analysts and executives is staggering. That no one has gone to jail, and none of the agencies have been shut down is a travesty of justice on an infinitely larger scale than Bernie Madoff’s Ponzi scheme. Until depositors, bankers and investors regain confidence in the quality of ratings we rely upon to measure financial stability and creditworthiness, the tremors that underlie the credit crisis will drag on indefinitely.” I have to say I agree with this quote 100%. Let us pray that the Food and Drug Administration is not currupt on the same scale. Just imagine. I don't know who that is on the left but I know she is not an investment analyst. But, if she were, it would make absolutely no difference to anyone.