Has the day of the auditor finally arrived?

1. Sounds like good news to me. Business Section NYTimes 8/24/12. Small audit firms doing their job and finding problems in 100% of 23 brokerage firms audited. Even the big 4 accounting firms are not so cozy with their clients. They too are finding “accounting deficiencies”. A former partner at Coopers and Lybrand, stated that, if we were auditing a manufacturing firm, such high rates of failures in their products, would force them out of business. FINALLY, there’s an understanding that the marketplace holds folks who produce a product to a higher standard then those who control the flow of money in our Country. Why?

2. Congress can not agree to repair The Dome of the Capitol, too much government spending was stated. Isn’t The Capitol a national landmark? Wouldn’t it’s repair provide skilled construction jobs? Why let the schism continue, repair the Capitol. NYTimes 8/25/12

3. The Financial Times, John Ford The “masters of the universe are playing a loser’s game. Hedge funds now control 2 trillion in assets. In order to seek ever higher returns on their investments, pension funds are now buying into hedge funds. How is it possible, when hedge funds are the least regulated money managers? Additionally, as they become larger during these uncertain times, they are no longer able to deliver stellar returns on investment. In fact, 98% of hedge fund gains are eaten up by fees. Rather then face dire consequences, pension funds would do better in US Treasuries. You, think?

4. LOL. FTimes. Uncertainty, the only thing markets can be certain about. Preceding the financial crash, in 2005, there were 2877 stories with the word uncertainty. 9 months into 2012 , there are 3290 mentions of uncertainty, Which year will prove more critical for the markets? Dare we forget “the Black Swan”?

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