Best practices? Whtz that?

The developing credit crisis in the United States, linked to the bursting of the housing market bubble, is beginning to reveal the accounting manipulations employed by major US financial institutions to engage in speculative activities and hide risks. The mortgage market – which loans to borrowers with a poor credit history - has been reeling under large losses for months and some of these losses have been incurred by hedge funds. In July number of hedge funds closed down and now in to the 4th quarter many large banks are reporting massive losses running into billions of dollars. Among the affected is Citigroup—an American financial conglomerate that is the world’s largest company measured by asset value and Morgan &Stanley—a forerunner among American banking dynasties. Morgan & Stanley’s reported losses for 2007 is a first in its 73 year old history.

Guess who is baling America out? For Morgan and Stanley it is good old China!(Chinese sovereign funds) While Citi had to latch on to the Moslem world to find a breather with Saudi funding.

The whole crisis coerces one to wonder why there is a duplicity when it comes to “Best Practices and Good Governance” for preachers of these have hardly practiced any to reach and to maintain the “now developed” status. One other thing, gone are the good old days of Allen Greenspan!!!!