WorldCom files largest bankruptcy ever
WorldCom, the nation's No. 2 long-distance phone company, filed for Chapter 11 bankruptcy protection late Sunday, nearly one month after it revealed that it had improperly booked $3.8 billion in expenses.
WorldCom, crushed by its $41 billion debt load, made its filing in the Southern District of New York. With $107 billion in assets, WorldCom's bankruptcy is the largest in United States history, dwarfing that of Enron Corp....[CNN/Money]
Ok, we all knew that this was coming. The question is, will Worldcom exist in a year, in any form that we will be able to identify as Worldcom. Perhaps, but not on the same scale. The way out is to sell of holdings to pay down debt.
The larger question is what the fallout will be. G. W. and company are running around yelling "the economy is sound, the economy is sound!" Others call for a war on terrorism in the boardroom.
The problem is that you can roll out all the numbers you want, but investor confidence in those numbers is shaken. We see large corporations falling due to financial games, and we ask...who else? Who else was playing those games? We sit an wonder, who's next? It calls to question any companies results.
Combine this with an administration that has a VP facing questions about the accounting practices of his former company, and a President in trouble for his own insider trading scandal. How are we to trust the people in charge of taking care of this? Why should we trust anything they say, when their hands are just as dirty? The answer is --- we can't...mj
8:31:57 AM 
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