I recently read a fascinating article (reliable source) which explains not only that many big banks indeed use the same tricks as Madoff but also that many companies use the methods of Enron and since the whole economy is based on such illusions (the taxpayers pay for it at the end, e.g. bailout-type socialism), it’s only a few scapegoats that are taken aside for a deserved beating. It’s like PR, federal flexing of muscles to restore confidence. I’m truly concerned about bubble economies, which also rely heavily on massive debts.

[a a $2.25 billion, three-part debt offering] The company’s board authorized $6 billion of debt issuance last year. Its bond sales from September and today amount to $7 billion, but it paid down $1 billion in short-term commercial paper debt in November.

This report is at odds with prior reports of $16 billion of debt, but we should not be surprised by a typo from a slippery company like Microsoft with a history of funny money reports. Nor should we be surprised to see Murdock running damage control articles about foreign money and US corporate tax rates. As a sharp observer here noted last September, the foreign money tax excuse implies that Microsoft is not making money in the US or is fraudulently evading taxes.

Whatever the reason, the company can’t seem to get enough debt.