Saturday, 17 July 2010
CREATIVE ACCOUNTING STILL ABOUNDS
Hello again folks! Now; if you thought that the worst is over for the banking sector and financial services 'industry'; then think again:
MoneyWeek is reporting [see above link] that although on the surface - and as widely reported by the mass media - profits appear to have returned to US banking giant JP Morgan Chase; the reality is that the REAL reason that things 'look' a whole lot better is simply because bad debt provision has been reduced by nearly two-thirds when their revenue has actually dropped by circa 8%.
It is this type of 'creative accounting' that brought us Enron et al. If I were you; I'd keeping watching that periphery and try not to be hypnotized by the [so-called] 'main headlines' we see and hear every single day.
Real Bereans [Acts 17:11] are truly needed; watchmen must warn; evangelists must compel; DO NOT BE DECEIVED and watch that periphery!
God bless you and God bless Israel ... Keith JS ... 17-July-2010