Healthsouth A Lesson Learned
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The theme of the financial markets in the late 1990's was "The Internet". Everyone involved was amazed at the money that was made by investors who poured their money into ventures that clearly lacked business plans and the cash flows to justify their soaring stock prices. Low and behold, at the end of the decade, the markets figured it out and all the money that investors made on paper was gone.
Well, it is pretty clear that the dominant theme in the financial markets since then is "The Corporate Scandal". It all started in late 2001 when Enron Corp. filed for Chapter 11 bankruptcy which was the biggest such filing ever at this point in time. This case introduced everyone to the special purpose entity (spe) and how it can be used to hide debt while trying to falsify profits. Then, in 2002, Worldcom, Inc. filed for Chapter 11 bankruptcy. This case was over twice the size of Enron...