Economy
Related: About this forumFinancial Collapse: A 10-Step Recovery Plan Alan Binder
HEGEL once wrote, What experience and history teaches us is that people and governments have never learned anything from history. Actually, I think people do learn. The problem is that they forget sometimes amazingly quickly. That seems to be happening today, even though recovery from the economic debacle of 2008-9 is far from complete.
Evidence of this forgetting is everywhere. The public has lost interest in the causes of the crisis; many, of course, are just struggling to get by. Unrepentant financiers whine about excessive regulation and pay lobbyists to battle every step toward reform. Conservatives bemoan big government and yearn to return to laissez-faire deregulation. Higher international standards for bank capital and liquidity have been delayed. I could go on.
Instead, let me try to encapsulate what we must remember about the financial crisis into 10 financial commandments, all of which were brazenly violated in the years leading up to the crisis. . .
Mark Twain is said to have quipped that while history doesnt repeat itself, it does rhyme. There will be financial crises in the future, and the next one wont be a carbon copy of the last. Neither, however, will it be so different that these commandments wont apply. Financial history does rhyme, but were already forgetting the meter.
http://www.nytimes.com/2013/01/20/opinion/sunday/financial-collapse-a-10-step-recovery-plan.html?hp
sendero
(28,552 posts).... thanks for posting the link. If our politicians and regulators would heed this advice we could avoid a repeat of this at least.
stumpremover462
(10 posts)From the GAO
GAO found the following:
Certain material weaknesses in internal control over financial reporting and other limitations on the scope of its work resulted in conditions that prevented GAO from expressing an opinion on the fiscal years 2012 and 2011 accrual-based consolidated financial statements. About 34 percent of the federal governments reported total assets as of September 30, 2012, and approximately 21 percent of the federal governments reported net cost for fiscal year 2012 relate to the Department of Defense (DOD), which received a disclaimer of opinion on its consolidated financial statements.
Because of significant uncertainties, primarily related to the achievement of projected reductions in Medicare cost growth reflected in the 2012, 2011, and 2010 Statements of Social Insurance, GAO was unable to express opinions on the 2012, 2011, and 2010 Statements of Social Insurance, as well as on the 2012 and 2011 Statements of Changes in Social Insurance Amounts. About $27.2 trillion, or 70.5 percent, of the reported total present value of future expenditures in excess of future revenue presented in the 2012 Statement of Social Insurance relates to Medicare programs reported in the Department of Health and Human Services 2012 Statement of Social Insurance, which received a disclaimer of opinion.
Material weaknesses resulted in ineffective internal control over financial reporting for fiscal year 2012.
GAOs tests of compliance with selected provisions of laws and regulations for fiscal year 2012 were limited by the material weaknesses and other scope limitations discussed in the report.