The New Enron?

Recently the New York Time reported that banks want to move away from GAAP – Generally Accepted Accounting Principles. For years US companies have relied on GAAP as the general rule for financial reporting. GAAP is somewhat a yard stick for the financial condition of US companies. Now the banks are requesting that this be altered a bit to so that they don’t look as bad in adverse financial climates.

Robert H. Herz, the chairman of the Financial Accounting Standards Board said that “consumer spending depends in part on how wealthy people feel”. When I hear talk like this I think, “Isn’t this what Enron did”? Didn’t Enron misrepresent its financials to appear to be a more robust company financially then it really was? But maybe if you ask for governmental assistance to change the rules a bit, it becomes legal.

Herz continued to state that “I (he) support the goal of financial stability and do not believe that accounting standards and financial reporting should be purposefully designed to create instability or pro-cyclical effects.” Again I ask, shouldn’t the financial reporting of a company mirror the financial condition of a company. If the company is sick financially we should say that, instead of potentially making it seem as if the problem does not exist.

Let’s keep an eye on what decisions are made regarding how banks are able to present themselves on paper.

The Best Opportunity Is Now

It has been said that, “character is developed through the trails of life.” This is a true statement. In like manner, I would like to submit to you that, “business opportunities are sweetest when the financial climate is at its worse.”

Let’s take a look at what is happening in today’s financial climate:

(1) Banks are attempting to bail out many homeowners who are overextended.
(2) Economists are predicting their will soon be a tsunami of home foreclosures.
(3) The government is spending a great deal of cash to get the economy to turn around.
(4) Eighty one banks have failed so far this year.
(5) There are 150 – 200 more banks expected to fail during this banking crisis.
(6) Banks may have to set aside 25% of their profits in 2010 to pay for these failed banks.

With these conditions affecting the market, it is the best time, in my opinion, to launch your business. When we look back in history, financially depressed environments have always created new business opportunities and the next generation of millionaires. Some companies and individuals prosper during recessions. You might have to re-think or re-create yourself but prospering during these tough times is possible.

Could the next generation of millionaires include you? Of course it can, but you have to be in a position for this to happen.

Allow me to assist you with discovering the best opportunity for you. Send me an email at