Cartoon: Solution to Creative Accounting

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Posted in » Cartoons - by Ades on January 6th, 2009

bailout_accounting.gif
Cartoon via Ritholts / Slate

Food for thought: One of the principles of free-market economy is a non-interference by Government, in other words Government shouldn’t regulate the market, it should let it sail its own course.

So, the recent US bailouts were totally against the free-market principles that the US government holds fast to. In 1997, during the Asian crisis, when Malaysia exercised the same Government intervention to save the country’s economy - bailing out some businesses - US Government was against it.

History repeats, isn’t it? Now we see, US doing bailouts after bailouts… and the principles are nowhere to be seen.

When Bush was reminded about the free-market principles, here is what he had to say:

“I’ve abandoned free-market principles to save the free-market system,” Bush told CNN television, saying he had made the decision “to make sure the economy doesn’t collapse.”

Bush’s comments reflect an extraordinary departure from his longtime advocacy for an unfettered free market, as his administration has orchestrated unprecedented government intervention in the face of a dire financial crisis.

“I am sorry we’re having to do it,” Bush said. source

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14 Responses to “Cartoon: Solution to Creative Accounting”

  1. By vitaminsister on Jan 6, 2009

    hoho. i like that cartoon. deep meaning.

  2. By mount on Jan 6, 2009

    the cartoon is sad, but true…….noone really knows how the $$ is being allocated. We can only hope that changes with the new administration.

  3. By Cheap Phone Calls on Jan 6, 2009

    I can see the irony in it all, but I also see why he is doing this. However, the market will always build, then dip again, it’s a natural trend.

  4. By SEO Tips South Africa on Jan 6, 2009

    These bailouts are carefully devised to extract the last of the cash out of the tax paying populace. These systems are flawed, and have to crash sooner or later. They are also self-regulating, so expect something better and more efficient to eventually arise from this mess.

  5. By Mikael on Jan 7, 2009

    I’m not sure whether the bailout is a good or a bad idea but I know that if nobody did anything thousands of companies would go bankrupt once the giant companies fell so even though I don’t like the principle of government intervention I think this is better than the alternative.

  6. By Web Designing on Jan 7, 2009

    So most of the US Banks now may follow these kind of accounting.

  7. By Mikael on Jan 7, 2009

    I’m amazed at the amount of semi-comment spam you’re getting. Doesn’t it bother you that 9/10 of the comments you get are providing no value what so ever and is obviously made by people only caring for a link on not for providing even the slightest value what so ever.

  8. By Ades on Jan 8, 2009

    @Mikael, yes it does, these are actually considered the decent ones. Most of them go straight to spam.

  9. By Mikael on Jan 8, 2009

    You’re kidding me? I think it is a shame that you run a decent blog but because you’re following links you’re being spammed like this. I know it might not be “XYZ” spam comments but it still doesn’t provide any value to the blog.

    Do you think it benefits your blog in anyway to have all these poor comments?

  10. By PSP Downloads on Jan 11, 2009

    The free market should be left free, and not interfered with. The economy is bad all around the world right now, hopefully it will be all back to normal soon.

  11. By Marketing Man on Jan 13, 2009

    Lol! Great cartoon. Well I think we’re not told the entire truth here, the bailout amount is probably more than what we’ve been told or just a scam to suck more money out of taxpayers for projects only the government knows about (I’m not starting a conspiracy theory btw).

  12. By Best Teeth Whitening on Apr 10, 2009

    We’re living in scary times. Your comments about the free market are right on target. In the end we cannot abandon free market principles to save the free market system. Once the principles are abandoned, it’s only a matter of time until the system falls.

  13. By Online College on Aug 25, 2009

    This is something I have a big issue with. Why would the government want to bail out a company that has failed. If the people that are currently running the business ran it into the ground then why not sell it off to someone else who could possible save it rather than waste tax payers money and drive it even further into the ground. Seriously we as Americans have the responsibility to take care of ourselves, and so we should. The government bails people out everyday and for what so they can continue to live in government housing and selling drugs on the corner? As least make them take a competency test and pee in a cup before we go handing out money.

  14. By beef recipes on Sep 15, 2009

    Great cartoon, funny but so true in a way. We have so much left on the plate to simplify our accounting standards. Hopefully the new international standards will help a bit for multinational companies!


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