Warren Buffet has called the Federal Reserve, the US central bank, “The Greatest Hedge Fund In History”. That is because the Fed as it is commonly known has persisted in printing money and buying $85 billion in bonds each month in order to artificially support the US and by extension the global financial markets.
This is quite possibly the recipe for another financial disaster. Continue reading
Posted in Banking, Business, History
Tagged asset prices, bonds, Credit, Federal Reserve, Financial Crisis, financial markets, hedge fund, housing, inflation, Paradigm, Quantitative Easing, stocks, Subprime, Warren Buffet
Audited financial statements are supposed to provide a solid foundation for financial markets. Yet, they increasingly appear incapable of delivering what is needed—a reliable assessment of an organization’s financial position. Is there any hope for change?
The recent history of professional accountancy and audit firms has been far from glorious. Audited financial statements are supposed to provide shareholders, investors and creditors with an independent and objective assessment of an organization’s health. The financial crisis of 2008, the aftershocks of which are still being felt all over the world, made audited financial statements look like they were not worth the paper they were written on. Continue reading
Posted in Banking, Business
Tagged accounting firms, Audit, auditor, Big 4, Enron, Financial Crisis, financial markets, financial statements, investors, JP Morgan, Shareholders, Values