Yesterday's FT (26/27.1.02) had an article which touched on this. It claims that the rules on reporting profits will be tightened up as a result of the Enron case, and that this will result in lower reported profits in the future. It also reports that Standard and Poors is pushing for the adoption of a new category of 'operating earnings', which would include charges for the cost of share options. It cites an estimate that including the cost of corporate earnings would reduce coportate profits by 17%.
Trevor Evans Berlin ----- Original Message ----- From: "Michael Perelman" <[EMAIL PROTECTED]> To: <[EMAIL PROTECTED]> Sent: 27 January 2002 05:30 Subject: [PEN-L:21954] enron and the rate of profit > I have been proposing the idea that the profit rate has been artifically > high for some time. I had mostly thought in terms of decreased regulation > and the defeat of labor. Enron and the dot.com bubble makes me think more > in terms of fraud. Any thoughts on this? > -- > Michael Perelman > Economics Department > California State University > Chico, CA 95929 > > Tel. 530-898-5321 > E-Mail [EMAIL PROTECTED] >
