Comments on: Norris: Blame Accountants http://www.ritholtz.com/blog/2009/09/norris-blame-accountants/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Tue, 14 Feb 2012 17:33:06 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: rch http://www.ritholtz.com/blog/2009/09/norris-blame-accountants/comment-page-1/#comment-215088 rch Sun, 13 Sep 2009 23:31:02 +0000 http://www.ritholtz.com/blog/?p=37942#comment-215088 This is nonsense! I read this blog because I think you are all quite bright....but when you buy into the idea that a group of auditors brought down the house of cards created by the finance industry I gota say you have missed the boat called leverage. That folks, leverage, is what caused this crisis, not accounting. It is amusing how every company, financial and otherwise, have a dislike for historical accounting and want some form that represents the current value of their assets and some bean counter is supposed to make that magic number appear. Do you know or remember what auditors do? They report on what the company represents. They don’t create numbers. So go to the source, not the messenger. Additionally, as long as the auditor gets paid by the client what do you expect. Are they supposed to be independent and have their contracts terminated? Then we have no financials more unemployment and the leverage just goes on. Auditors are stuck representing clients but at the same time trying to maintain "independence." They do that by reporting on the financial statements. Sarbanes was put together because management keeps lying to the public. Problematic, yes. Just an attempt to fill in for the lack of moral responsibility exhibited by the current group of corporative executives that can’t seem to tell the truth or keep their fingers out of the cookie jar. Do you remember what Margaret Thatcher said? Without morality capitalism will fail. So why not look to leverage, a group of less than honest business types, and a lack of morality if you must blame something or somebody. This is nonsense!
I read this blog because I think you are all quite bright….but when you buy into the idea that a group of auditors brought down the house of cards created by the finance industry I gota say you have missed the boat called leverage. That folks, leverage, is what caused this crisis, not accounting. It is amusing how every company, financial and otherwise, have a dislike for historical accounting and want some form that represents the current value of their assets and some bean counter is supposed to make that magic number appear. Do you know or remember what auditors do? They report on what the company represents. They don’t create numbers. So go to the source, not the messenger.
Additionally, as long as the auditor gets paid by the client what do you expect. Are they supposed to be independent and have their contracts terminated? Then we have no financials more unemployment and the leverage just goes on. Auditors are stuck representing clients but at the same time trying to maintain “independence.” They do that by reporting on the financial statements. Sarbanes was put together because management keeps lying to the public. Problematic, yes. Just an attempt to fill in for the lack of moral responsibility exhibited by the current group of corporative executives that can’t seem to tell the truth or keep their fingers out of the cookie jar. Do you remember what Margaret Thatcher said? Without morality capitalism will fail.
So why not look to leverage, a group of less than honest business types, and a lack of morality if you must blame something or somebody.

]]> By: madman130 http://www.ritholtz.com/blog/2009/09/norris-blame-accountants/comment-page-1/#comment-214747 madman130 Sat, 12 Sep 2009 00:50:50 +0000 http://www.ritholtz.com/blog/?p=37942#comment-214747 How's it possible? I thought sarbens-oxly cured all accounting problems of the past. What? Are you saying regulations don't work? Or, the US politicians can't get anything right? They should just give up IMO. How’s it possible? I thought sarbens-oxly cured all accounting problems of the past.

What? Are you saying regulations don’t work?

Or, the US politicians can’t get anything right? They should just give up IMO.

]]> By: kfunck1 http://www.ritholtz.com/blog/2009/09/norris-blame-accountants/comment-page-1/#comment-214627 kfunck1 Fri, 11 Sep 2009 19:28:05 +0000 http://www.ritholtz.com/blog/?p=37942#comment-214627 Sounds about wrong. As always, the blogosphere and the media completely botch the accounting issue, probably because they don't know wtf they are talking about. Go read a god damn 10-Q or Quarterly presentation for christ sake. Sounds about wrong. As always, the blogosphere and the media completely botch the accounting issue, probably because they don’t know wtf they are talking about. Go read a god damn 10-Q or Quarterly presentation for christ sake.

]]> By: Onlooker from Troy http://www.ritholtz.com/blog/2009/09/norris-blame-accountants/comment-page-1/#comment-214538 Onlooker from Troy Fri, 11 Sep 2009 17:16:47 +0000 http://www.ritholtz.com/blog/?p=37942#comment-214538 beaufou "Is gold the next bubble?" That's certainly what many are hoping for, you can bet on that. beaufou

“Is gold the next bubble?”

That’s certainly what many are hoping for, you can bet on that.

]]> By: Mark Wolfinger http://www.ritholtz.com/blog/2009/09/norris-blame-accountants/comment-page-1/#comment-214537 Mark Wolfinger Fri, 11 Sep 2009 17:15:15 +0000 http://www.ritholtz.com/blog/?p=37942#comment-214537 "their own estimates of the eventual cash flow from assets are more realistic than what they — or others — will now pay for those assets." Amazing. How come I cannot convince my broker that this rule applies to me? When they issue a margin call, I get 10 minutes (or less) to fix the problem. They don't care what I think the position is worth. http://blog.mdwoptions.com/Options_for_Rookies “their own estimates of the eventual cash flow from assets are more realistic than what they — or others — will now pay for those assets.”

Amazing. How come I cannot convince my broker that this rule applies to me? When they issue a margin call, I get 10 minutes (or less) to fix the problem. They don’t care what I think the position is worth.

http://blog.mdwoptions.com/Options_for_Rookies

]]> By: beaufou http://www.ritholtz.com/blog/2009/09/norris-blame-accountants/comment-page-1/#comment-214490 beaufou Fri, 11 Sep 2009 16:13:01 +0000 http://www.ritholtz.com/blog/?p=37942#comment-214490 Is gold the next bubble? Is gold the next bubble?

]]> By: How the Common Man Sees It http://www.ritholtz.com/blog/2009/09/norris-blame-accountants/comment-page-1/#comment-214478 How the Common Man Sees It Fri, 11 Sep 2009 16:00:38 +0000 http://www.ritholtz.com/blog/?p=37942#comment-214478 I think they'll try to close gold above $1k today. No more dipping the toes in the pool I think they’ll try to close gold above $1k today. No more dipping the toes in the pool

]]> By: leftback http://www.ritholtz.com/blog/2009/09/norris-blame-accountants/comment-page-1/#comment-214474 leftback Fri, 11 Sep 2009 15:58:27 +0000 http://www.ritholtz.com/blog/?p=37942#comment-214474 Um... they are still hiding the dubious assets and now we aren't even allowed to know what market value is.... Very very strange things happening today, equities disconnected from EUR:JPY earlier in the day, and JPY:USD is screaming off the charts even as Treasuries stay well bid. Is the yen (and gold) the safe haven currency now? Closed all my long dollar trades for now. No sense in taking a beating, and no idea where we are going next week. Um… they are still hiding the dubious assets and now we aren’t even allowed to know what market value is….

Very very strange things happening today, equities disconnected from EUR:JPY earlier in the day, and JPY:USD is screaming off the charts even as Treasuries stay well bid. Is the yen (and gold) the safe haven currency now?
Closed all my long dollar trades for now. No sense in taking a beating, and no idea where we are going next week.

]]> By: torrie-amos http://www.ritholtz.com/blog/2009/09/norris-blame-accountants/comment-page-1/#comment-214462 torrie-amos Fri, 11 Sep 2009 15:41:56 +0000 http://www.ritholtz.com/blog/?p=37942#comment-214462 another BS article, does cat comcast exon have corrupt accounting, no .............one more time 30-1 leverage, u better be able too count, it's banks and investment banks who got and continue to get special treatment, when the ceo says put it here, it goes there, pretty simple another BS article, does cat comcast exon have corrupt accounting, no ………….one more time 30-1 leverage, u better be able too count, it’s banks and investment banks who got and continue to get special treatment, when the ceo says put it here, it goes there, pretty simple

]]> By: How the Common Man Sees It http://www.ritholtz.com/blog/2009/09/norris-blame-accountants/comment-page-1/#comment-214460 How the Common Man Sees It Fri, 11 Sep 2009 15:38:23 +0000 http://www.ritholtz.com/blog/?p=37942#comment-214460 it's like 1999 all over again Mark: Couldn't find the 404 page of convictions :) it’s like 1999 all over again

Mark:

Couldn’t find the 404 page of convictions :)

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