Tuesday, June 11, 2002

How to Calm the Wary Investor What will it take to get Americans comfortable about buying stocks again? How about jail time for Wall Street crooks, for starters "While the stock market remains in a depressingly narrow trading range so far this year, it's becoming increasingly clear that the problem isn't the economy, which is recovering. But even the prospect of an earnings bounce later in the year isn't enough to get today's disillusioned investors back in the game. Many of them don't trust analysts to forecast earnings or companies to deliver honest profits as accounting and analyst-research scandals continue to mount amid accusations of corporate malfeasance." 9:58:47 AM  Google It!  comment  []

System Failure COVER STORY Corporate America has lost its way. Here's a road map for restoring confidence "Goldman Sachs CEO Hank Paulson is not a touchy-feely guy. Even by Wall  Street standards, he's fairly buttoned down. But the daily drumbeat of news about horrifying corporate behavior would get to anyone-- and it's clearly getting to Paulson. 'In my lifetime, American business has never been under such scrutiny, and to be blunt, much of it deserved,' he said in a recent speech. To FORTUNE he added, 'You pick up the paper, and you want to cry.'" "Phony earnings, inflated revenues, conflicted Wall Street analysts, directors asleep at the switch--this isn't just a few bad apples we're talking about here. This, my friends, is a systemic breakdown. Nearly every known check on corporate behavior-- moral, regulatory, you name it--fell by the wayside, replaced by the stupendous greed that marked the end of the bubble. And that has created a crisis of investor confidence the likes of which hasn't been seen since--well, since the Great Depression." 9:56:52 AM  Google It!  comment  []