I want to make clear I am not just talking about some recent failing here: the succession of firms that KPMG seem to have audited that have gone to the wall after their audit reports have been issued; the disaster of Carillion, and the dismal failure of the Financial Reporting Council to show any initiative at all in the face of such issues arising are not what has created a crisis. Important as all these things are I suggest to you that they are symptomatic of a much greater malaise that is what really needs to be addressed.

The greater issue is one that I suggest that anyone who has interest in saving the market economy should rally to support. That issue is that without data; without is verification; and without trust that the data supplied is both useful and reliable, then markets as we know them will cease to exist.

What do I mean by that? I suggest that:

People will stop saving – at least in shares;

But isn’t he running a campaign to stop people saving in shares?

16 thoughts on “Odd”

  1. I am not surprised that a qualified auditor does not know what an audit does. But it is surprising that he has an audience that seems to take him seriously and that he is employed in an educational establishment rather than by a toilet inspection outfit.

    The audited accounts are only one bit of the basis for an investment decision. The Carillion accounts did look a bit dodgy but the decision of two executives to leave the company after trousering huge bonuses was interesting. The news flow from the company was interesting. The departure of a director after only a few months in the job… Interesting. Suspending the dividend.

    I think these factors were more important to investors than accounts made up till 31 December 2016

  2. did you see his entry despairing that Scotland was not following his suggestion of economic autarky – The man is the greatest moron in the entirety of Cyberspace – a quarter wit incapable of tying his own shoelaces.

  3. Noel

    So many epiphanies, Eurekas and 180 degree turns in a single career. I expect Murphy to be spinning round in his grave as he’s being doing it his whole life.

  4. Murphy assumes that markets need absolutely perfect information, and that any shortfall will cause markets (and/or capitalism) to collapse.

    Yet he happily calls for the State to make more and more decisions for us despite it having even less information.

  5. Richard T –

    He has never worked for the state other than as an academic. He has no idea how much information the state has, or how it operates.

    He imagines it operates as some kind of combination between his parents and his grandparents. With no profit motive, unselfishness and common sense prevail.

  6. Murphy assumes that markets need absolutely perfect information

    The fact that even he can manage to prosper in such a society implies that he is wrong.

  7. It also should be said that, contrary to the #Murphwisdom, the FRC have asked KPMG to explain why they signed off to “going concern” when there were obvious doubts about the escalation in receivables… Another #murphfail

  8. Ohhh, guess who’s just made the been, on Independence: Could Scotland keep the pound?

    Andrew Wilson, the former SNP MSP and economist who led the Growth Commission, contends that it would not be a problem for Scotland to follow Bank of England monetary policy as it currently stands.

    “The idea of having interest rates set as at present is not difficult for me because the Scottish economy performs to the UK average at present, and therefore monetary policy is as fitted to Scotland as to anywhere in the UK at present,” he said.

    However, others have already been critical of this approach, with independence supporter and chartered accountant Richard Murphy arguing that it would be “devastating”.

    He said following UK monetary policy would see any negative impacts of Brexit or other economic changes being “imported directly into the Scottish economy” – claiming that Scotland would “remain enslaved by the pound and tied to the apron strings of London”.

  9. So he denies that Scotland is about 99% dependant on England? How much trade flows from Scotland without going through England?

  10. Gah, “just made the been” should be “just made the Beeb” but seems the autocorrect got at it.

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