"US consumer spending grows but experts warn of precarious outlook," is CNN's
weekend Market-Watch Headline. Another from ABC News is "Experts Express
Concerns about Continuing Fragility in Economy's Key Elements." Finally, the CBS
Evening News Headlines included "The worst may be over...or is it." Without doubt, the
past year has been truly rattling and unnerving, from an economic standpoint, as well as
others. Several corporations have dissolved, with CEOs accused of being deceitful,
while others have succeeded. Some have lost so much in failed bonds, stocks, and
securities, while others have found comfort in venture capitalist funds and other areas.
Business organizations have found that an increasing amount of support, innovation,
integrity, and reform are needed for success, and if these components of new business are
not present, then almost certain financial failure is unavoidable. This new paradigm is
supported by examining failed and bankrupt companies, organizations that are being
affected by the arduous economy, changes to business structure combined with
innovative thought, mergers and outside help given to companies, and the concepts
governing new economics and new business.
Failed and bankrupt companies can reveal the scope of the new economic
paradigm. A little over a month ago, WorldCom, Inc., a renowned telecommunication
provider worldwide, filed for Chp. 11 bankruptcy protection, a result of an economic
downtown which depleted the company's profits. This was a clear reflection of the
downfall of the decade's recent economic success. An SEC investigation has begun,
trying to decipher some records regarding faulty accounting; specifically, low expense
reporting that would in turn increase earnings. The company's high-ranking officials are
under fire from government officials, many accused of obstruction of justice and criminal
wrongdoings; this all as the company is desperately trying to avoid bankruptcy. This
case has promoted widespread calls for more government intervention...