Undersecretary of the Treasury for Domestic Finance Peter R. Fisher discusses nonfinancial indicators.

Peter J. Wallison introduces the nonfinancial indicators conference.

In recent years, accountants have begun to recognize that financial statements prepared under generally accepted accounting principles (GAAP) cannot adequately communicate the value of companies that use internally generated intangible assets--such as software or pharmaceutical designs--to produce their revenues and profits. Since 80 percent of the value of the...

...

The Shadow Committee argues thatthe Senate Banking Committeeshould not pass legislation that continues torestrict the ability of retailers and other nonfinancial companies to acquire or charter Industrial Loan Companies. There is little, if any, evidence that the policy of separating banking and commerce makes economic sense.

Several studies have shown that public-sector workers receive higher compensation than their counterparts in the private sector. Although, federal contractors have some of the advantages of private sector workers, in that poor performers can be dismissed and the composition of the contractor workforce altered, it is possible that they are overcompensated just as federal employees are right now.

Dividends do respond to investment and cash flow for the nonfinancial corporate sectors, and this undercuts the traditional view that dividend taxes raise the cost of capital.

The passage of the financial-reform bill contributed to the biggest drop in equity markets in more than a year, showing markets understand the bleak future of a land of high taxes, big government, complex regulations, and indignant politicians.