Bookkeeping magic...a pretty serious accusation? From Fleckenstein on Wednesday:
Ledger Legerdemain Also in the news, in yesterday's Seattle Times there was an interesting quote by Scott McNealy, CEO of Sun Microsystems, who was discussing the common practice of made-up pro forma financial results: "All of the good stuff, none of the bad. . . . We're guilty, but you know, the market buys it, so we do it." I like Scott McNealy for his candor. It is certainly true that Wall Street has fallen for this game -- hook, line and sinker. That, too, will change down the road as earnings go back to being earnings. If one takes a careful look, it will be clear that much of the money supposedly earned in the mania has been written off. A good percentage was illusory, just like everything else in the mania, including the productivity and new-era myths.
--QS |
