2. Accountability A well regulated community or business entity, being necessary to the security of a free society, the right of the people to keep informed and to be armed with bare facts, shall not be infringed. US Constitution, Second Amendment [Amended]
3. The Life of a Turkey TIME SUSTAINING ACTIVITY Thanksgiving Day FORMULA FEED
4. The Life of a Financial Market Place TIME SUSTAINING ACTIVITY T FORMULA for GROWTH & PROFIT A BLACK SWAN! CORPORATIONS HOUSES MORTGAGES BONDS STOCKS INVESTMENTS DERIVATIVES (CDOs, CDSs & CMOs) BANKERS’ FEES COMMISSIONS PROFITS If things cannot go on for ever, they will eventually and inevitably STOP! [Herbert Stein – Chairman, President Reagan’s Council of Economic Advisors and Professor of Economics at the University of Virginia]
5. The Life of the Financial Market Place – A Black Swan! An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult to predict . This term was popularized by Nassim Nicholas Taleb, a finance professor and former Wall Street trader.
6.
7.
8. The computer room at King's College Cambridge, is named after Alan Turing, a student there in 1931 and a Fellow in 1935 Computers – fathered by Turing - are now ubiquitous, notably in accounting, finance and investment .
9. Mapping the Future [County of Cambridgeshire UK.] [What has This to do With Anything?] Alan Turing , father of computers, went to King’s College, Cambridge, England
11. The Crash @ Six Mile Bottom - 1954!! Type: English Electric Canberra B.2 Operator: RAF 231 OCU Registration: WD981 C/n / msn: 71051 Fatalities: Fatalities: 3 / Occupants: 3 Airplane damage: Written off (damaged beyond repair) Location: .5 mile W of Six Mile Bottom, Newmarket , Cambridgeshire, England
27. Marketplace Myths (1) Government is, always and everywhere: wasteful, spendthrift, incompetent, inefficient, uneconomical and ineffective Business is, always and everywhere: ethical, frugal, thrifty, competent, efficient, economical and effective Private enterprise can, always and everywhere, operate more efficiently and effectively than a public enterprise. Excuse Me?
28. Marketplace Myths (2) The commercial market-place can, always and everywhere: allocate resources more efficiently than governments . There is no market failure. Always and everywhere, there is only governmental interference, together with policy and regulatory failure. [Even Federal Reserve ex-Chairman, Alan Greenspan does not believe this any more!]
29.
30.
31. Efficiency & Ethics The pseudo-science of economics and the myth of unconstrained economic efficiency. Economics – like tanks and banks – does not care whom it helps and whom it hurts!
32. Efficiency & Ethics The military tank is a marvel of science and technology. Like the “science” of economics, it very efficiently ( but indiscriminately ) controls, supports, kills, wounds, destroys & damages.
36. Economic Efficiency: Tanks or Banks? “ [The man of system] seems to imagine that he can arrange the different numbers of a great society with as much ease as the hand arranges the different pieces of a chess-board; he does not consider that the pieces of a chess-board have no other principle of motion besides that which the hand impresses on them; but that, in the great chess-board of human society, every single piece has a principle of motion of its own , different from that which the legislature might seem to impress on it.” [Adam Smith: The Theory of Moral Sentiments]
37.
38.
39. Cut-throat Competition “ We worshiped in the temple of cut-throat competition, and so some cooked the books, because the treasure is so great .” [Archbishop Tutu]
40.
41. Alan Greenspan and Adam Smith "I made a mistake," Greenspan said, "in presuming that the self-interests of organizations , specifically banks and others, were such as that they were best capable of protecting their own shareholders and their equity in the firms.” [a.k.a. “I refute Adam Smith!”] [* Lying to Congress is a felony] “ It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.... “ ....He intends only his own gain , and he is in this as in many other cases, led by an invisible hand* to promote an end which was no part of his intention . Nor is it always the worse for society that it was no part of it. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it.” [Adam Smith “Wealth of Nations”] US Senate Banking Committee*
42. Actually, Alan Greenspan Missed the Point! Adam Smith Knew Better! Read it again, this time with different emphasis: “ It is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.... “ ....He intends only his own gain, and he is in this as in many other cases , led by an invisible hand* to promote an end which was no part of his intention. Nor is it always the worse for society that it was no part of it. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it.” [Adam Smith “Wealth of Nations”]
43. Actually, Adam Smith Knew Better! “… as in many other cases…”: BUT – NOT in ALL of them! . “… Nor is it always the worse for society…”: BUT – sometimes – it IS! “… he frequently promotes…”: BUT – sometimes – he does NOT! “… than when he really intends to promote it…” BUT – not, always, when he really does NOT so intend! [Adam Smith “Wealth of Nations”]
44. The Standard Neoclassical Economic Model “ I argue that the first fundamental theorem of welfare economics - asserting the efficiency of competitive markets - is fundamentally flawed . Quite contrary to that theorem, competitive economies are almost never efficient...” Joseph E. Stiglitz - Whither Socialism (2001 Nobel Laureate in Economics) Extracted from: “ Adam’s Myth Economics” A Slide Show, by David C. Jones
48. Regulation of Derivatives (1b) Many newer derivatives weren't traded on an exchange, constituting what some traders call the "dark markets." There were now millions of such private contracts, involving many of Wall Street's top firms. But there was no clearinghouse holding collateral, to settle a deal gone bad, no transparent records of who was trading what. Born wanted to shine a light into the dark.…she now wanted to open a formal discussion about whether to regulate them -- and if so, how. Greenspan, Rubin and Levitt were determined to derail her effort . At a meeting, in April, 1998, the trio's message was clear: “ Back off, Born!”
49.
50.
51. The near collapse of Long Term Capital Management The Federal Reserve was TERRIFIED! Question : As a result, how much was done, by regulation or investigation, to prevent a recurrence? Answer : On a scale of 1 to 10 - Nothing!
52.
53. Accountability Investors in and Sellers of Mortgage-backed Securities (Derivatives): “ We were intending to use Arthur Andersen to help us to prepare our financial statements. “ But, after “Waste Management Incorporated” and “Enron,” Andersen went out of business!”
54. Accountability Investors in and Sellers of Mortgage-backed Securities (Derivatives): “ We used three “reputable” (??) credit-rating agencies, to value our investments”: “ Sub -Standard and Very- Poor”; “ Very Moody ” and “Fi l ch Ratings ”
55.
56.
57. Accountability – Credit Rating Agencies ANSWER? Not very much, apparently! As part of a new set of rules adopted today, the Securities and Exchange Commission will prohibit credit rating agencies from helping to structure the same financial products they rate. Raters become the first industry to be handed new regulations as a result of the credit crisis. [CFO Magazine – CFO.com – 4 Dec. 2008]
58.
59.
60.
61.
62.
63.
64. INTERNAL & EXTERNAL CONTROLS Price of Inputs Purpose Quantity of Inputs Questioning Capacity Pay Inputs Expenditure Permission Prestige Quality of inputs Productivity Probity Publicity Procedures Questing Intensity Power Production Characteristics of Activity
65.
66.
67. “ The financial statements have been prepared in accordance with standards for “Financial Reporting and Accounting for Un-priceble Derivatives” (FRAUD). “Therefore, using “Creatively Regulated Accounting Practices” (CRAP) we hereby certify that these financial statements represent a true and fair view of the state of affairs of the company, as at the date of the balance sheet and of the activities for the year then ended. Arthur Underhand and Company Certified Public Accountants (Retired) Accountability [Model Financial Reporting Statement]
70. Accountability “ Fair Value Accounting is causing a large part of the problem at this moment…” Steve Bartlett, President and CEO Financial Services Roundtable Testimony to: U.S. House of Representatives Financial Services Committee 18 November, 2008
71. Fair Value Accounting David C. Jones, CPFA, FCCA, had heard this statement, when listening to his car radio. He was so astonished that he nearly crashed into a tree! (Not believing his ears, he later needed to verify it from the C-SPAN web-site, which carried the hearing of the US House of Representatives Financial Services Committee!)
72.
73.
74.
75.
76.
77. Expensive Fancy Funerals [Ashes to ashes; dust to dust] We brought nothing into this world and it is certain that we can carry nothing out! The Lord gave and the Lord hath taken away. Blessed be the name of the Lord! [BCP: 1662] [Robert Peston: BBC News]
78. Accounting A quote, from Ken Wagstaffe, a British professional colleague, and fellow accountant, who wrote a paper, about this kind of thing: "......it is based on some completely and fundamentally wrong notions about what accounting is. The level of ignorance about accounting is breathtaking. "
79.
80.
81. “ I’m as mad as Hell and I’m not going to take this any more” [David C. Jones: Chartered Public Finance Accountant; Chartered Certified Accountant (UK)]
82.
83.
84.
85.
86.
87.
88. Churchill Chart TRADING MANUFACTURE OR OPERATING ACCOUNT PROFIT AND LOSS ------------------------- INCOME AND EXPENDITURE NET EARNINGS ------------------------- GENERAL FUND SURPLUS EXPENSES CASH AND BANK DEPRECIATION OR CAPITAL FINANCING RESERVE -------------------------- FIXED ASSETS STOCK OF GOODS AND MATERIALS SALES -------------------------- REVENUE INCOME SPECIAL FUNDS -------------------------- PROVISION FOR EXPENSES MONETARY INVESTMENT DEBTORS (RECEIVABLES) CAPITAL & RESERVES (INCLUDING FIXED ASSET REVALUATION) 12 11 7 5 3 20 16 8 25 13 10 26 14 9 24 19 1 2 2 1 4 8 4 9 5 6 23 23 15 17 22 6 6 14 12 13 10 3 6 7 18 21 11 27 28 27 28 NOT ALL THERE IS TO IT
89. Churchill Chart – Production v. Financing TRADING MANUFACTURE OR OPERATING CASH AND BANK FIXED ASSETS -------------------------- DEPRECIATION STOCK OF GOODS AND MATERIALS SALES -------------------------- REVENUE INCOME RECEIVEABLES & INVESTMENTS EXPENSES PROFITS & LOSSES EQUITY CAPITAL FINANCIAL MANAGEMENT (& MISMANAGEMENT) PRODUCTION SELLING & MARKETING EARNINGS
90. The Neutrality of Investment, Credit & Lending [“Finance]… is but a walking shadow, a poor player that struts and frets his hour upon the stage and then is heard no more: it is a tale told by an idiot, full of sound and fury, signifying nothing.“ (Shakespeare) A MONETARY INVESTMENT (ASSET) IS ANOTHER’S DEBT (LIABILITY): RECEIVEABLES & INVESTMENTS
91. Financial Services I keep six honest serving-men (They taught me all I knew); Their names are What and Why and When And How and Where and Who. I send them over land and sea, I send them east and west; But after they have worked for me, I give them all a rest. [ Rudyard Kipling] Finance is merely serving-men (To show us what is due); Their names are What and Why and When And How and Where and Who. I send it over land and sea, I send it east and west; But after it has worked for me, I give MYSELF the rest!
92. Financial Services I keep six honest serving-men (They taught me all I knew); Their names are What and Why and When And How and Where and Who. I send them over land and sea, I send them east and west; But after they have worked for me, I give them all a rest. [Rudyard Kipling]
93. Financial Services Finance is merely serving-men (To show us what is due); Their names are What and Why and When And How and Where and Who. I send it over land and sea, I send it east and west; But after it has worked for me, I give MYSELF the rest!
104. Money and banking: Resources § or Results? * “ Granted, you are the clearing house of the world [but] are you entirely beyond anxiety as to the permanence of your great position?...Banking is not the creator of our prosperity, but is the creation of it. It is not the cause of our wealth § , but it is the consequence * of our wealth.” [Joseph Chamberlain (British colonial secretary): statement to bankers – 1904] * § “An accountant records and interprets, in money values, the results of variations during any period of time, at the end of which he can balance Net Results * (of past operations) against Net Resources § (available for future operations)”. [David C. Jones]
105.
106.
107.
108.
109.
110.
111. The “Folk Theorem” or “Folk Fable” of the “Free Market” Economics of Adam Smith Adam Smith also wrote (implying major and fundamental aspects of market inefficiency and failure, through the tendency towards monopoly): “ People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy to raise prices” and “ ....to widen the market and to narrow the competition, is always the interest of the dealers.....an order of men, whose interest is never exactly the same with that of the public, and who accordingly have, upon many occasions, both deceived and oppressed it.”
112.
113. “ The October Revolution” “I’m as mad as Hell and I’m not going to take this any more” [Man Friday and Friends]
114. Biblical Economic Capitalism [Psalm 23 – KJV] Psalmist’s Prophecy Application Thou shalt prepare a table before me Table of toxic derivatives & bad debts Against them that trouble me Sub-prime mortgages [ and the accounting profession – re “fair value accounting!”] Thou annointest my head with oil Traders in oil futures And my cup shall be full Corporate chief executives But thy loving-kindness and mercy shall follow me all the days of my life Recipients of corporate redundancy and retirement packages.
121. The (Former) Colonial Version of Trade The (Modern) Reverse-Colonial Version of Trade The colonial powers – notably Britain; Netherlands; France; Portugal; Spain. – traded trinkets with, e.g. Indians; Chinese; Africans; Native Americans, in exchange for (real) gold, silver, spices and other items of wealth. The former colonial, colonized and other, powers – notably USA; Canada; Australasia; Western Europe; and, Japan. – buy trinkets and toys (including economy cars; computers; electronics; etc., from e.g. The: Indian sub-continentals; Chinese; Koreans; Malaysians; and, many others, in exchange for (valuable) Foreign Exchange Reserves
122. The Former (Hollywood) Version of Bank Robbery “ Hand over the money – or we’ll shoot!” [Bank Robbers – armed with guns ] ________________ The Modern (Woolly-head) Version of Bank Grabbery “ Hands out for our money – or we’ll shout!” [U.S. Treasury Department – armed with tons (of money)]
129. CONSOLIDATED PROFIT & LOSS ACCOUNTS c CAP = EQUITY CAPITAL PPE = PROPERTY, PLANT & EQUIPMENT C&I = CASH & INVENTORY INT - = INTEREST PAYABLE (CANCELLED AGAINST INTEREST RECEIVABLE) INT + = INTEREST RECEIVABLE (CANCELLED AGAINST INTEREST PAYABLE) PRODUCTIVE ASSETS GENERATE REAL INCOME
133. DO THE MATH! ( Δ + Δ + Δ + Δ + Δ + Δ + Δ + Δ + Δ + Δ + Δ + Δ + Δ + Δ + Δ + Δ + Δ + Δ + Δ + Δ ) – ( + + + + + + + + + + + + + + + + + + + ) = 0 VALUATIONS, AT HISTORICAL COST – OR FAIR VALUE (BUT) TOO MANY LOANS – CREATING TOO LARGE A TOTAL [MONETARY INVESTMENTS (ASSETS)] [LONG-TERM DEBT – AND SIMILAR (LIABILITIES)]
134. LAW OF DIMINISHING RETURNS FINANCIAL, ECONOMIC & SOCIAL BENEFITS VALUE OF LOAN PORTFOLIO B V 0 STEEPLY ACCELERATING BENEFITS GRADUALLY DECELERATING BENEFITS ABSOLUTE BENEFITS FALLING GRADUALLY ACCELERATING BENEFITS THE LOAN PORTFOLIO IS TOO LARGE TO BE VIABLE! IT IS “OUT OF CONTROL.”
135.
136.
137. Too Big to Fail – or Two Figs* to Bail Bank of America is among the companies being bailed by U.S. taxpayers out while having subsidiaries where they can avoid paying U.S. taxes. (Damian Dovarganes -- Associated Press) * They “don't give two figs" = complete lack of care or concern for the situation!
138. “ LAW” OF DIMINISHING CAPITAL COVERAGE VALUES OF LOAN PORTFOLIOS B V 0 RATIO OF CAPITAL TO (MONETARY) ASSETS: LOANS HANGING IN BY A THREAD! MONETARY ASSETS: LOANS MADE CAPITAL & RESERVES
144. IMF warns of 'disturbing' UK debt The level of debt in the UK is "disturbing," the head of the International Monetary Fund has said. But Dominique Strauss-Kahn told the BBC that given the severity of the economic downturn, more government borrowing was the lesser of two evils. He said 2009 would be "a really bad year" and more state spending was necessary to stimulate growth. [BBC News: 21 December, 2008]
145. David C. Jones Warns US Congress of ‘Disturbing' Washington DC Debt Emergency Long-term Borrowing by the District of Columbia It is certainly not a standard municipal finance practice to permit long term borrowing, merely to cover a general accumulated budgetary deficit. Thus, the situation in which the D.C. government finds itself, measured against normal [municipal] financing principles, is about the worst that could possibly be imagined… … although the proposal to issue long term debt instruments technically violates all normal principles of [municipal] finance , it is one that should - in this special instance - be given serious consideration, because all the other choices are likely worse . That is really its only redeeming feature . All seem to acknowledge…that the most that can be done, at present, is to "make the best of a bad job.“ [Testimony of David C. Jones to the U.S. House of Representatives – July 25, 1991]
146. The Balance of Accounting RESOURCES RESULTS DEBIT DEBIT CREDIT CREDIT Resources must always equal Results
147.
148.
149. Under-utilized Capital (e.g. Building Capacity) OCCUPIED AND/OR PRODUCTIVE USE (ONLY A PART - OR NONE) UNOCCUPIED AND/OR NO PRODUCTIVE USE (REMAINDER) VERSUS LAND AND INFRASTRUCTURE BUILDINGS
150.
151.
152. LEVELS OF FINANCIAL CONCERN NEW DEBT OR EQUITY FINANCE CAPITAL COST & DEBT SERVICE ADEQUATE CASH-FLOW ESSENTIAL CONCERNS CAPITAL STRUCTURE EXPANSION & DEVELOPMENT SURVIVAL NEW OPERATING COST & INTEREST PROFITABILITY SUSTAINABILITY POTENTIALS FOR DISRUPTION INSTITUTION GOING CONCERN (STEADY STATE) PROJECTS (DISRUPTIVE) OVERALL ACHIEVEMENT FINANCIAL REQUIREMENTS
158. Use of Economic Resources (Figure 13f) RESULTS RESOURCE MOBILIZATION CAPITAL CONTRIBUTIONS ASSET SALES LONG-TERM DEBT TEMPORARY DEBT SUPPLIERS (CREDIT) RESOURCE ACTIVATION INFORMATION RAW MATERIALS SERVICES ENERGY LABOR CUSTOMERS & CLIENTS THE COMMON WEALTH NATURAL RESOURCES MONETARY INVESTMENT INVENTORIES WORK IN PROGRESS CUSTOMERS (CREDIT) CASH RESOURCE ALLOCATION (& RESOURCE CONSERVATION) LAND PERMANENT WORKS BUILDINGS EQUIPMENT & MACHINERY RESOURCE UTILIZATION PRODUCTION DISTRIBUTION OPERATION MAINTENANCE ADMINISTRATION TAXES DEPRECIATION INTEREST DIVIDEND RETAINED EARNINGS PROPERTY DISPOSAL HUMAN CAPITAL* MANAGEMENT (ENTERPRISE)* * CREATIVE, INNOVATIVE (RIGHT-BRAIN) TALENT COMMERCIAL, SOCIAL & ECOLOGICAL RETURN & REINVESTMENT WASTE, DAMAGE & DESTRUCTION COMMERCIAL, SOCIAL & ECOLOGICAL CONSUMPTION (SATISFACTION) COMMERCIAL, SOCIAL & ECOLOGICAL STIMULATION
159. RESULTS OF ACTIVITY (USE OF RESOURCES) COMMERCIAL, SOCIAL & ECOLOGICAL RETURN & REINVESTMENT WASTE, DAMAGE & DESTRUCTION INNOVATION - CONSUMER SATISFACTION , REINVESTMENT & PRODUCT DEVELOPMENT COMMERCIAL, SOCIAL & ECOLOGICAL ECOLOGICAL CONSUMPTION (SATISFACTION) COMMERCIAL, SOCIAL & ECOLOGICAL IMPORTANT SUCCESS CRITERIA AND PRINCIPAL FOCUS OF ATTENTION PERFORMING USEFUL & HIGH-QUALITY ACTIVITIES AT APPROPRIATE PLACES AND TIMES LONG-TERM OPTIMIZATION OF RESOURCE USE (PRODUCTIVITY & WASTE CONTROL) DEBT SERVICE QUALITY OF ENVIRONMENT PAYMENT OF TAXES MAXIMIZATION OF PROFIT QUALITY OF SOCIAL LIFE OPERATIONAL & FINANCIAL RELIABILITY WASTE DISPOSAL PRODUCT & SERVICE QUALITY QUALITY OF LABOR LIFE DAMAGE RECTIFICATION Resource Consumption v. Results
160.
161. “ Cost” Cutting by Wolfgang Amadeus Mozart (“W.A.M.” Principles) Conversation Emperor of Austria to Mozart: Methinks your symphony is a trifle too long, young sir! There are too many notes! Mozart: Indeed your Majesty, and precisely which notes would you have me remove? [“Amadeus”-Movie] Conclusion It really is not about size or length, is it? It is, I think, about depth . Depth of perception, depth of appreciation, depth of acknowledgement of the sheer vastness of what we do not “know” - yet - but would: (a) “love or like” to know; (b) don’t know and don’t care; or (c) know very well and don’t care!! “ Remove those that are soiled!” (Like Toxic Derivatives) “ But – they are all mixed up together!” (Like Toxic & Other Derivatives)
162. RESULTS OF ACTIVITY – A SYMPHONY OF OUTCOMES COMMERCIAL, SOCIAL & ECOLOGICAL RETURN & REINVESTMENT WASTE, DAMAGE & DESTRUCTION INNOVATION - CONSUMER SATISFACTION , REINVESTMENT & PRODUCT DEVELOPMENT COMMERCIAL, SOCIAL & ECOLOGICAL CONSUMPTION (SATISFACTION) COMMERCIAL, SOCIAL & ECOLOGICAL (“W.A.M.” PRINCIPLES): IMPORTANT NOTES - SUCCESS CRITERIA AND PRINCIPAL FOCUS OF ATTENTION TO CUT “COSTS”: WHICH OF THESE NOTES WOULD YOU LIKE US TO REMOVE, OR DIMINISH – MR. MAYOR? PERFORMING USEFUL & HIGH-QUALITY ACTIVITIES AT APPROPRIATE PLACES AND TIMES LONG-TERM OPTIMIZATION OF RESOURCE USE (PRODUCTIVITY & WASTE CONTROL) DEBT SERVICE QUALITY OF ENVIRONMENT PAYMENT OF TAXES MAXIMIZATION OF PROFIT QUALITY OF SOCIAL LIFE (SHARP) OPERATIONAL & FINANCIAL RELIABILITY WASTE DISPOSAL PRODUCT & SERVICE QUALITY QUALITY OF LABOR LIFE DAMAGE RECTIFICATION Cost v Quality of Service ♯ ♫♪♫ ♯ ♫ ♫ ♯ ♫ ♫ ♫ ♫ ♫ ♫ ♫ ♫ ♫ ♫ ♫ ♫ ♫ ♫ ♫ ♫ ♫ ♫ ♫ ♫ ♫ ♫ ♫ ♫ ♫ ♫ ♫ ♫ ♫ ♫ ♫ ♫ ♯ ♫♪♫
163. Public and Private Enterprise The essence of “economics-in-community” is very much to provide meaningful and satisfying work, as it is a means to creating: adequate and quality goods and services; decent recreation; and, quiet cultural or spiritual reflection. Yet, the markets for goods and services is rarely emphasized and the market for labor is highlighted only as for a commodity, to the extent that an increase in employment (reduction in unemployment) of ordinary workers might threaten the monetary values of the wealth-tokens of money-traders! Even though the real (economic) values of these tokens are, in effect, zero! [Adapted from: “The Common Good” (Daly & Cobb)]
164.
165.
166. INFORMATION AS A MARKET FACTOR Information Quality VALUATION ACCURACY 0 Information > (Good Information = Accurate Valuation & Pricing) VALUE 100% 100% ( Poor Information = Flawed Valuation & Pricing)
170. When Omar’s Car is NOT Well-maintained [IT IS A “LEMON!”] OMAR’S CAR WHAT PRICE WOULD YOU PAY FOR IT? ?
171. When Omar’s MORTAGE is NOT Well-Serviced : [ Principal and Interest NOT Paid On time and In Full] [IT IS A “LEMON!”] OMAR’S MORTGAGE WHAT PRICE WOULD YOU PAY FOR IT?? ? ?
172. A MORTAGE-BACKED SECURITY Includes several LEMONS [IT IS “ LEMON ADE !”] OMAR’S DERIVATIVE WHAT PRICE WOULD YOU PAY FOR IT?? ? ? ? ? ? }
173. When Omar’s HOUSE is NOT Well-Valued : [ And May Not be Well-Maintained] [IT IS A “LEMON!”] OMAR’S HOUSE WHAT PRICE WOULD YOU PAY FOR IT?? WOULD YOU ACCEPT IT AS COLLATERAL?? ?
185. EPILOGUE AND OBITUARY Mr. Fyodorov used to lament the fact that that even he could not find the right phrase, in Russian, for “Corporate Governance”. All those concerned with “Western-style” capitalism must now, also, lament the fact that even they cannot find the right phrase, in English , for “ Corporate Governance!”.