Down goes the Dow

Earnie wrote:

Nice try, Igy. You provide no proof which is not surprising since it's ALL LIES!

Oh yes just dying to lie to the king of Internet slander.

I'm not sure if you're purposely being deceitful, or if you're just incredibly ignorant. Your links say nothing about laws or penalties with regards to GAAP reporting.

It's unbelievable that someone as clueless as you is allowed to handle other people's money.

Earnie wrote:

I'm not sure if you're purposely being deceitful, or if you're just incredibly ignorant. Your links say nothing about laws or penalties with regards to GAAP reporting.

It's unbelievable that someone as clueless as you is allowed to handle other people's money.

Of course the clueless is one that has to search Investopedia to weakly make a point. Of course Internet slander is your game. Here you go again, educate your ignoramus self:

How's 20 years in prison sound?

The acronym GAAP appears in there exactly zero times.

You are lucky the SEC doesn't throw you in jail for your blatant lies.

Earnie wrote:

The acronym GAAP appears in there exactly zero times.

You are lucky the SEC doesn't throw you in jail for your blatant lies.

Earnie since you are such a disingenuous loser, cannot put two and two together, I thought I would give you a concise quote (found below).

But Detector Dude, that is not what you came for because you are the king of internet slander. Purveyor of mirrors, captain of the Titanic. Marching thru Let's Run with bag of crap slung over your shoulder. You should drop all your other handles and just use"Johnny Crap Seed."

"U.S. companies are required to present their financial statements according to a set of accounting standards, conventions and rules known as Generally Accepted Accounting Principles, or GAAP. An independent accountant audits the company’s financial statements. For large companies, the independent accountant also reports on a company’s internal controls over financial reporting. The auditor’s report is a key part of the 10-K. Most audit reports express an “unqualified opinion” that the financial statements fairly present the company’s financial position in conformity with GAAP. If, however, an auditor expresses a “qualified opinion” or a “disclaimer of opinion,” investors should look carefully at what kept the auditor from expressing an unqualified opinion. Likewise, investors should carefully evaluate material weaknesses disclosed on internal controls over financial reporting.

In addition, the Sarbanes-Oxley Act of 2002 requires the company’s CEO and CFO to certify that the 10-K is both accurate and complete. These are called Sections 302 and 906 certifications, and you can usually find them in Exhibits 31 and 32.

You may also find “non-GAAP financial measures” in the 10-K. That means that the numbers do NOT conform to GAAP. While companies are permitted to present non-GAAP measures, they must also show how they differ from the most comparable corresponding GAAP financial measure. As an investor, it is up to you to decide how much weight to give to non-GAAP measures."

From SEC.gov, 10-K, How to Read

Igy

Nothing there about imprisonment or fines. Admit it....you were WRONG!

And why are you accusing me if slander? Pointing out someone's lies dies not constitute slander.

That get's to another thing. What will happen in any financial crises under Trump is that he will bail out Wall Street. I mean, does anyone really doubt that? A big question I have is what the tea party wing of the Republican party is going to do. Are the going to really fight for their ideal or lay down and let Trump do what he wants to do?

Ghost of Igloi wrote:

Ryan,

I suspect you are correct. The cost of Dodd Frank is in the compliance. Of course there are parts of the law that make little sense, but for the most part good. Interestingly Christopher Dodd one the bills sponsors got a sweetheart loan from one of the biggest offenders during the Financial Crisis. Motives for sponsorship driven by guilt perhaps. New DOL rules not part of Dodd Frank. DOL has jurisdiction over ERISA rules.

It will be interesting to see what comes out of the next financial crisis. Perhaps the structure of institutional trading, ETFs, failure of Target Date Funds, over aggressive industry trading recommendations?

Igy

Johnny Crap Seed....

Ryan,

Gosh, not sure how events will play out. The 2000-2002 Tech Bubble and crash led to legislation related to corporate accounting and investment banking disclosure. There are several characters of the period still in prison. The Financial Crisis and collapse resulted in the rescue of the financial, banking, housing and automobile industries. A few individuals faced fines and the crisis uncovered the Madoff scam, but few individuals faced imprisonment.

I largely see the culprits in this phase Fed policies, corporate financial engineering, institutional trading, index funds and ETFs. Of course Wall Street, which I would include all firms promoting and packaging financial products, complicit in the current bubble. But how can one divorce Fed policies from the "reach for yield," "Fed has your back," and "BTFD" meme that will be remembered as characteristics of this era.

Igy

Earnie wrote:

Nothing there about imprisonment or fines. Admit it....you were WRONG!

And why are you accusing me if slander? Pointing out someone's lies dies not constitute slander.

The citation refers to Section 906, which outlines fines and imprisonment, both citations included above. But you are such a dope or fake you can't or won't put it together. But you are JCS.

Ryan,

To your post, interestingly this today from John Hussman:

https://mobile.twitter.com/hussmanjp/status/832980782184529922?p=v

Igy

Ghost of Igloi wrote:

Earnie wrote:

Nothing there about imprisonment or fines. Admit it....you were WRONG!

And why are you accusing me if slander? Pointing out someone's lies dies not constitute slander.

The citation refers to Section 906, which outlines fines and imprisonment, both citations included above. But you are such a dope or fake you can't or won't put it together. But you are JCS.

But none of that references GAAP which was your entire point. You have fallen flat onto your face. So you resort to insults in a pathetic attempt to save face. Too late.

Stupido Detector Dude:

"U.S. companies are required to present their financial statements according to a set of accounting standards, conventions and rules known as Generally Accepted Accounting Principles, or GAAP. An independent accountant audits the company’s financial statements. For large companies, the independent accountant also reports on a company’s internal controls over financial reporting. The auditor’s report is a key part of the 10-K. Most audit reports express an “unqualified opinion” that the financial statements fairly present the company’s financial position in conformity with GAAP."

"You may also find “non-GAAP financial measures” in the 10-K. That means that the numbers do NOT conform to GAAP. While companies are permitted to present non-GAAP measures, they must also show how they differ from the most comparable corresponding GAAP financial measure. As an investor, it is up to you to decide how much weight to give to non-GAAP measures."

From SEC.gov, 10-K, How to Read

Igy

GoI,

I should backtrack a little on my last post. I think it is very remote that Trump would have to engineer any kind of bailout during his presidency. For one thing banks are extremely well capitalized right now by all accounts. I actually believe that banks want to keep it that way. Also, any bailout is already in place thanks to W. Bush and Obama. Wall Street banks now have access to the Fed's power as lender of last resort. They didn't have that in the summer of 08'. My point is really that Trump is not going to change that.

It needs to be understood that Obama was very pro Wall Street. I think a great danger for investors in this market is to falsely believe Obama wasn't and that Trump is going to set everything right for Wall Street.

Problem is, Republican propaganda portrays Obama as if he was from the radical wing of the Green Party. For reasons of his own Obama wanted to be seen as "progressive". to appease that side of his party. So you can point to bipartisan views that Obama was anti-Wall Street. But he wasn't. If you look at actually policy that mattered Obama was very generous to big corporations. Dodd/Frank was watered down from the very beginning and Wall Street basically oversaw its implementation.

Nevertheless, Trump is committed to giving Wall Street yet more freedom to do whatever they want. But I think its just going to be gimmicks of allowing more secularization and financial products to insure other financial products. Nothing that really helps the productivity of the economy.

.

No source?

Here are the formal instructions from the SEC for the completion of Form 10-K. Nowhere in these 12 pages will you find the acronym "GAAP" or the words "generally accepted accounting principles."

Both viewpoints are correct..."The use of GAAP is not mandatory for all businesses, but the U.S. Securities and Exchange Commission (SEC) requires publicly traded and regulated companies to follow GAAP for the purpose of financial reporting. Companies that issue stock are held to this standard by the Securities Act and the Securities Exchange Act, which require yearly external audits by independent accountants. Companies without external investors are not obliged to follow this standard."

The discussion concerned GAAP reporting requirement to SEC, and CEO and CFO verifying accuracy of filing under penalty of imprisonment. Igy supplied the correct information.

He said it was required of all US companies. It is not. It is only required of publicly held ones.

Portia wrote:

He said it was required of all US companies. It is not. It is only required of publicly held ones.

Wrong. The entire discussion was derived from Earnie's posting of non-GAAP EPS reporting for Q4 2016 S&P 500 companies.