Once upon a time, U.S. corporations practiced what was known as Generally Accepted Accounting Principles (GAAP.) Thus, it was pretty easy to figure out who was profitable and who wasn’t. These days, you need a thesaurus, computer and a really stiff drink to try to figure out what many a U.S. corporation is TRULY making (or not.)
In this interview — as entertaining as it is maddening — former Reagan Administration OMB Director David Stockman talks about this earnings alchemy with CNBC’s Rick Santelli.