Category Archives: Irrational exhuberance

Google hooey

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Google’s CEO, Eric Schmidt, has a cod piece in the Financial Times (now hidden behind that organ’s annoying paywall) about how the Internet — and Google — has changed all our lives for the better. Nick Carr is having none of it.

As Schmidt writes, “the democratization of information has empowered us all as individuals.” Today – for the first time ever! – people “are actually commenting on events themselves.” It is nothing less than “the liberation of end users.”

As a liberated end user myself, let me just say that this is a load of crap. Schmidt goes on in his op-ed to argue against governmental controls over the internet and, in particular, over access to the internet through cell phones. Those are worthy arguments. But why does he find it necessary to distort history, insult the intelligence of pretty much everyone, and demean the work of all traditional journalists before he gets around to making his point? Why does he feel compelled to repaint the past in the darkest possible colors? I guess it’s to create an illusion of perfect progress, a new liberation mythology.

Jury thinks Bernie did understand accounting after all

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The New York Times | Worldcom verdict

Bernard J. Ebbers, the former chief executive of WorldCom, was found guilty yesterday in federal court of orchestrating a record $11 billion fraud that came to symbolize the telecommunications bubble of the 1990’s and the excesses that were uncovered in its aftermath.

Mr. Ebbers was convicted of securities fraud, conspiracy and seven counts of filing false reports with regulators. Each count carries a sentence of 5 or 10 years.

Mr. Ebbers and WorldCom, through the acquisition of dozens of phone companies, helped to create the rush for telecommunications stocks in the 1990’s. They were at the center of a swirl of scandals that cast doubt on corporate accounting methods, the role of Wall Street analysts, and investment bankers who sold stocks and bonds to investors.

Note: during the trial, Bernie maintained that he didn’t understand all the accounting mumbo-jumbo. He was, it seems, just a regular guy at the mercy of sharp-witted accountants.