IDTI - an IC Play on Growth Markets Message Board

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Technology Stocks : IDTI - an IC Play on Growth Markets

IDTI 48.99

0.0%

Mar 29 5:00 PM EST

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To: Taut Knot who wrote (11330)	2/3/2002 2:18:26 PM
From: Rob S.	Read Replies (1) of 11555

The market just went through the largest and longest period of expansion in history capped off by a period of absolutely insane speculation by investors and some company management. Also part of the bubble, particularly the last 2-3 years before the collapse, was a very damaging deviation from normal business and accounting disciplines. this included a huge increase of questionable or outright fraudulent (although it is difficult to get the close-knit accounting and management professions to totally admit it) accounting practices. Just take a look at the financial statements of many firms today, particularly in the high tech industries: laden with large amounts of highly inflated "goodwill" and other items that distort the valuation of the company. But it's what is not on the financials that is most troublesome and the fact that you simply cannot trust management or accounting firms to provide data that can be trusted. America used to be considered a relatively safe place to invest because of political stability and diligent and open accounting and reporting practices. That is no longer the case. I am an MBA and I know a few CPAs and the conclusion that has become common is that the rule of the day is you cannot trust the financials or other statements to tell the true story of the financial health and trends of US companies. This is a BIG PROBLEM. When people who are schooled and practiced in understanding these matters conclude that things are so rotten that it destroys basic trust, then the possibility for a collapse in the economy caused by fear and panic separate from the economic underpinnings threatens the entire financial structure of the U.S. and World economies. "There is nothing to fear but fear itself" may be a true statement but is certainly one that I hope does not get tested.

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