How GM Made $30 Billion Appear From Thin Air: Jonathan Weil

[thundley4]

It will be a long time before General Motors Co. can shake the stigma of being called Government Motors. Here’s another nickname for the bailed-out automaker: Goodwill Motors.

Sometimes the wackiest accounting results are the ones driven by the accounting rules themselves. Consider this: How could it be that one of GM’s most valuable assets, listed at $30.2 billion, is the intangible asset known as goodwill, when it’s been only a little more than a year since the company emerged from Chapter 11 bankruptcy protection?

That’s the amount GM said its goodwill was worth on the June 30 balance sheet it filed last month as part of the registration statement for its planned initial public offering. By comparison, GM said its total equity was $23.9 billion. So without the goodwill, which isn’t saleable, the company’s equity would be negative. This is hardly a sign of robust financial strength.

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I think I'll load up on imaginary GM stock.

[NHSparky]

IIRC, the last company that tried this was called ENRON.

So does that mean the libs are gonna call for public lynchings this time?

Oh, who the hell am I kidding?

[Lacarnut]

The government cooks the books with things like off budgetary items so why not Government Motors. Oops, I mean General Motors. Next we will be hearing that the loan has been paid off with some voodoo accounting principals. Short for VAP rather than GAAP or FASB.

[Allentownjake]

The administration is so desperate for success it has taken to fraud.  I saw that in the last BLS labor report.

Today they issued a report that was better than expected without the caveat that two of the largest states in the nation estimated their results.

[Duke Nukum]

The administration is so desperate for success it has taken to fraud.  I saw that in the last BLS labor report.

Today they issued a report that was better than expected without the caveat that two of the largest states in the nation estimated their results.

When have they done anything in a non-fraudulent way?  Obama and his players have been frauds since he ran for the senate.  At least.

[Allentownjake]

When have they done anything in a non-fraudulent way?  Obama and his players have been frauds since he ran for the senate.  At least.

Waking up on somethings.  I take reports that are used by business to make decisions very seriously.  Lying on the BLS reports and someone believing them could result in someone making some very bad decisions.

[AllosaursRus]

Waking up on somethings.  I take reports that are used by business to make decisions very seriously.  Lying on the BLS reports and someone believing them could result in someone making some very bad decisions.

Ya mean like the reports Anderson ( the company you worked for at the time BTW ), put out prior to Enron collapsing and costing their employees their retirement?

Like that, is that what ya mean?

Just curious............

[Allentownjake]

Ya mean like the reports Anderson ( the company you worked for at the time BTW ), put out prior to Enron collapsing and costing their employees their retirement?

Like that, is that what ya mean?

Just curious............

You know there were employees at Arthur Andersen that did a great job and were entirely honest.  Since Andersen I think KPMG, Delloite, Price, and Ernst have had their own little issues.  Someone was auditing Countrywide, Bear Stearns, and Lehman for starters.

That being said.  In accounting, the top students are given job offers generally in their junior year.   In good economic times it is odd to have a student with a 3.0 who doesn't have a job offer by December.

I was hired by Arthur Andersen with an intent to work there a year before I would ever step foot in an Andersen office. 

The firm had a reputation that was golden for 80 years and was the gold standard.  They evaporated in 3 months.

I was given praise by professors and other students for landing that job.  I was lucky.  I could have been a first year kid or a lower level manager who now has to answer for the crimes of senior management for the rest of his career.

[AllosaursRus]

You know there were employees at Arthur Andersen that did a great job and were entirely honest.  Since Andersen I think KPMG, Delloite, Price, and Ernst have had their own little issues.  Someone was auditing Countrywide, Bear Stearns, and Lehman for starters.

That being said.  In accounting, the top students are given job offers generally in their junior year.   In good economic times it is odd to have a student with a 3.0 who doesn't have a job offer by December.

I was hired by Arthur Andersen with an intent to work there a year before I would ever step foot in an Andersen office. 

The firm had a reputation that was golden for 80 years and was the gold standard.  They evaporated in 3 months.

I was given praise by professors and other students for landing that job.  I was lucky.  I could have been a first year kid or a lower level manager who now has to answer for the crimes of senior management for the rest of his career.

Oh, I see! You're only against the corps that didn't hire you!

Makes absolute sense, now!!! wink, wink!

You don't think the same thing didn't happen to employees at Lucent? Yet they're totally ****ed, right, cause daddy got a raw deal, right?

[Allentownjake]

Oh, I see! You're only against the corps that didn't hire you!

Makes absolute sense, now!!! wink, wink!

You don't think the same thing didn't happen to employees at Lucent? Yet they're totally ****ed, right, cause daddy got a raw deal, right?

The CEO and executives of lucent were selling their stock while telling their employees to buy more.  Forgive my father, he was a military man for a while, he had a tendency to trust his commanding officers.  He was also a director of Engineering in a department that was doing well.

He didn't get ****ed out of anything other than his stock options and some stock and the Lucent stock he put in his 401(k).  His rewards for doing a good job.  I told him he should sell them immediately after he could.  That is a different story.

My Mom still has some shares apparently.  JPMorgan wants a death certificate to close the account.  With fees it is -$50.  She told them to **** themselves the estate is settled and they can deal with the paperwork sorting it out.

I had an offer from KPMG after Andersen (they acquired the Philly office, down to the furniture).  Took a look at the industry and decided something else might be better.  Given the past 8 years, and given the number of scandals have increased.  Probably the right decision.

[AllosaursRus]

The CEO and executives of lucent were selling their stock while telling their employees to buy more.  Forgive my father, he was a military man for a while, he had a tendency to trust his commanding officers.  He was also a director of Engineering in a department that was doing well.

You mean just like Anderson, ( a company you were working for at the time, BTW ), did to the employees of Enron???????????

Just like that? Is that what ya mean??????????

Oh, and it's nice you aren't suckin' off the gubmint tit in order to let a lessor human collect, even though that is exactly what your idealism purveys! What the hell did ya think was goin' to happen when ya voted for "the One"?

Aren't you the sacrificer! Good to see there are some real philanthropists on the left, doin' their part! All this time, I thought it was us Bible Thumpers haulin' the heavy weight!

I stand corrected! heh, heh!

Let me know when ALGore, one of your your heros, BTW, puts as much into the kitty as I do.

And I don't make 1/10th of 1% what that carbon rapin' asshole does!

[Allentownjake]

You mean just like Anderson, ( a company you were working for at the time, BTW ), did to the employees of Enron???????????

Just like that? Is that what ya mean??????????

Oh, and it's nice you aren't suckin' off the gubmint tit in order to let a lessor human collect, even though that is exactly what your idealism purveys! What the hell did ya think was goin' to happen when ya voted for "the One"?

Aren't you the sacrificer! Good to see there are some real philanthropists on the left, doin' their part! All this time, I thought it was us Bible Thumpers haulin' the heavy weight!

I stand corrected! heh, heh!

Let me know when ALGore, one of your your heros, BTW, puts as much into the kitty as I do.

And I don't make 1/10th of 1% what that carbon rapin' asshole does!

No matter how many times I explain to you I had a job offer from Arthur Andersen you say I worked for them. 

I'm free to do what I want to do, before I do an action, I evaluate whether I think it is moral or not to do so.

The rest of what you wrote makes absolutely no sense and your trying to provoke a reaction. 

Here is your reaction
 

[AllosaursRus]

The rest of what you wrote makes absolutely no sense and your trying to provoke a reaction.

Hmmmmmmmmmm....... ya sure as hell didn't have a prob over at the DUmp "provoking a reaction"!

WTF???

What the hell, ya turn ***** since ya crawled outa the DUmpster???????????

Or is it, when ya actually run into interference from real men, and conservative women, you fold?

Wouldn't surprise me! Never seen a DUmpster Diver with any guts when confronted headlong!


I'll have to look it up, but I sure as hell thought ya said you worked for Anderson right before Enron took a dump???

If I'm wrong, I apologize!

Somethin' you and your buddies on the left fail to ever acknowledge!

[Allentownjake]

Hmmmmmmmmmm....... ya sure as hell didn't have a prob over at the DUmp "provoking a reaction"!

WTF???

What the hell, ya turn ***** since ya crawled outa the DUmpster???????????

Or is it, when ya actually run into interference from real men, and conservative women, you fold?

Wouldn't surprise me! Never seen a DUmpster Diver with any guts when confronted headlong!


I'll have to look it up, but I sure as hell thought ya said you worked for Anderson right before Enron took a dump???

If I'm wrong, I apologize!

Somethin' you and your buddies on the left fail to ever acknowledge!

I graduated in May of 2002.  If I did, it was a misspeak.  The only way I could have worked at Andersen would have been as an intern.  Getting coffee and putting binders together I hardly think is being complicit with Enron.  I was not an Intern.  I was hired along with about 3-4 other students from Temple to start after graduation.  Probably August.  They encouraged all of us to backpack in Europe and I thought that was silly.

Besides My accounts would have been Philadelphia clients even if I did work there, sending a first year to TX is silly.

[AllosaursRus]

I notice ya haven't come out on the allegation on whether or not you have lost your nutz since leavin' the DUmp!

WTF????

Ya sure as hell didn't have a problem callin' us out over there where we couldn't respond!

This board is waaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaayyyyyyyyyyyyy more lenient than the DUmpster!!!!!!!!

WTF????????????

[Allentownjake]

I notice ya haven't come out on the allegation on whether or not you have lost your nutz since leavin' the DUmp!

WTF????

Ya sure as hell didn't have a problem callin' us out over there where we couldn't respond!

This board is waaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaayyyyyyyyyyyyy more lenient than the DUmpster!!!!!!!!

WTF????????????

I'm evaluating what I think of things.  If you want me to piss on the rug, I can for you.  I'm in your house.  I'm trying to be polite.

When I disagree I say I disagree, when I say I don't know, I say I don't know.

A year and a half ago Keynsian economics seemed fine with me.  I decided to read about things more.  I think the Austrian school makes more sense.  Why did I think Keynsian made more sense, it was the only thing I had exposure to.

If there are more than one theories, you should look at them and look at the evidence.

The theory behind the bailouts, has failed in the lab.  Fixing the results does no one any good.  The theory behind the stimulus was wrong.  Lying and saying it worked does no one any good.

My interest is primarily on economics.  What works what doesn't work.  There are other issues I might have an opinion on, they aren't educated. 

[AllosaursRus]

I'm evaluating what I think of things.  If you want me to piss on the rug, I can for you.  I'm in your house.  I'm trying to be polite.

When I disagree I say I disagree, when I say I don't know, I say I don't know.

A year and a half ago Keynsian economics seemed fine with me.  I decided to read about things more.  I think the Austrian school makes more sense.  Why did I think Keynsian made more sense, it was the only thing I had exposure to.

If there are more than one theories, you should look at them and look at the evidence.

The theory behind the bailouts, has failed in the lab.  Fixing the results does no one any good.  The theory behind the stimulus was wrong.  Lying and saying it worked does no one any good.

My interest is primarily on economics.  What works what doesn't work.  There are other issues I might have an opinion on, they aren't educated. 

Ya certainly pissed on our rug when you were on somebody else's carpet!