Posts Tagged ‘Federal Reserve’

The Summa is an accounting blog.  You know, debits, credits, accounting rules and auditor problems.

Sometimes, though, economic issues seep through.  Thanks to an alert contributor at AECM (the e-mail listserv for accounting professors), I have been watching a really good animated video explaining Quantitative Easing.  The video, uploaded by Youtube contributor MALEKANOMS.


It seems as if the Fed and its QE programs is more fouled up than the audit model, the Big-4 lock on the audit industry, the SEC and its management of American accounting standards, and the International Accounting Standards Board.  Of course, we all know that these are fouled up beyond are imaginable recognition.

Debit and credit – – David Albrecht

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I wonder why the push for a single set of global accounting standards is so powerful when accounting theorists are all so dead set against it.  Why?  Oh, why?

Today I’m on a fishing expedition.   Sometimes I throw things out to see if others think the same way.  I certainly think the following essay is plausible.  Do you agree or disagree?

It is frustrating to be an accounting professor and to live in the United States of America.  A mind set that triumphs the interests of corporations and auditors over those of investors is entrenched in the regulatory shadow.  Consequently, any policies that might favor populist policies have little chance of success.

The federal government’s financial and economic regulatory apparatus is comprised of the Treasury Department (Treasury), the Federal Reserve (Fed), and the Securities and Exchange Commission (SEC).  The top positions are political appointees, but the bulk of the work is performed by career and long-term personnel.  It is a lot like the situation at the State Department (State), Department of Defense (DoD), and the National Security Agency (NSA).

In the same way that the politics and the communal mind-set of the career and long-term personnel shape national policies over at State-DoD-NSA, the politics of the career and long-term personnel shape national policies over at Treasury-Fed-SEC.


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