Wall Street's WMD of Choice Is ACCOUNTING.

[laundry_queen]

2. Small correction

the problem is not accounting. While accounting is involved, generally there are pretty strict rules regarding accounting especially with IFRS coming into play. The problem here is in Finance - a separate discipline from accounting. Accounting fraud is easier to detect because of those strict rules (for instance, the demise of Arthur Andersen) and there are new rules regarding auditing that are very strict (Sarbanes-Oxley act). Finance, however, is like the wild west. They can create value out of thin air with estimates and complicated equations, and there are few regulations. If speculators are willing to buy and are ignorant to the 'real' value of the financial instrument, too bad so sad, buyer beware. This is an area that requires much stricter regulations, however fat chance getting any regulations passed with the present political reality.