Wednesday, June 26, 2002

Worldcom uncovered WORLDCOM uncovered what may be one of the largest accounting frauds ever with the discovery of $3. 8 billion in expenses that were improperly booked as capital expenditures.[Wall Street Journal] This stuff is really bad. It undermines not just the stock market but the theory of corporation that it rides on -- that we, as owners in absentia, can trust managers to run the company with our best interests in mind. When the short term stakes are big enough, with huge option grants and pay for performance packages (where performance is narrowly defined), its beginning to look like we can't. 6:22:29 AM