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To: tejek who wrote (85693)	7/24/2002 1:16:35 PM
From: Joe NYC	Read Replies (2) \| Respond to of 275872

Ted, I don't disagree but to suggest that the issue of fraud has not seriously exacerbated an already precarious situation is understating its impact IMO. True, and the market would have been able to digest it better during the bull market. What worries me more than 0.1% of companies committing outright fraud but the 20 to 40% of companies (WAG) that have some irregularities, overly optimistic assumptions, cutting corners etc. in their earnings statements. I would not be surprised if some came out and said they will have to "restate" prior reports. Joe

To: tejek who wrote (85693)	7/24/2002 1:45:07 PM
From: Bill Jackson	Read Replies (2) \| Respond to of 275872

Ted, It was said that Caesar's wife must be above suspicion. Once she was caught publicly riding a chariot(eer) in the nude all wives came under suspicion, esp when there was a sudden rush of nude chariot(eer) riding by assorted wives. Now all companies are under suspicion, since those who have fallen were associated with accounting companies that were thought to be above suspicion, but turned out to be completely compromised we now look at all lesser accounting companies and fear they are also compromised. There will be a very strong move towards full arm's length accountancy practice. No accountancy firm will ever have a research department that does research for clients again. In fact accountancy firms may well get rid of research departments as a huge possible liability, just so they will be able to point to independant research companies...of which there are few, but that arena will grow enormously in the next year. In the same manner brokerages will want to hire those same outside companies to ratify and confirm their own in house research, so they can make recommendations to clients with less fear( and smaller insurance costs). In fact we are entering the dawn of a new age of free standing research companies. People like Bloomberg whose bread and butter is the research they sell are probably a good buy? unless they are privately held? Who will provide research for the retail investor, who wants to avoid the broker picks? Since I make my own choices it does not affect me, but many people in the past have taken the broker picks....now the class action lawyers will go fishing in that fertile sea for clients who lost money from broker picks. There are so many fish in thet sea you can almost walk upon them. Thus look for independent research companies, both for large corporate investors as well as retail investors to be good picks over the next few years. Anyone know many, apart from Bloomberg? Bill