Cycles of Regulation

During the expansion phase of the growth cycle, regulation always laxes. When the markets implode, the regulators come running in (e.g. Sarbanes-Oxley). Guess where we are now? Enron was not an isolated incident involving unethical management. Neither was Tyco, Worldcom, AIG, or Bear Stearns. They are all part of an overall cycle of laxed regulations and euphoric credit-induced expansion. Many participated in the process. Go research the accounting changes over the past 20 years. Get ready for the IRS audits.