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June 27, 2002
MEGAN MCARDLE IS READY TO
MEGAN MCARDLE IS READY TO GET MARRIED: I think it's apparent from this entertaining and informative post on the WorldCom disaster:
One of the driving forces at the end of the nineties was that most research analysts were rather like fiancees. They had developed unrealistic expectations of the future based on the very short, and unusually rosy, period through which they had just lived. In the case of the equity analysts, they had begun to feel that they were entitled to see beautifully rising earnings each and ever quarter even though it was clear that if one extrapolated their expectations into the not-so-distant future, Toys 'R Us would be producing more revenue than the entire US economy. Much like a fiancee who is told that she should not expect her prospective groom to indefinitely continue to give up his best friend's superbowl party in order to escort her to the mall, research analysts got very cranky when they were told that their dreams of infinitely expandable earnings might be a tad unrealistic.
Like prospective grooms, CEO's were very anxious to please the equity analysts, because they were very afraid that if they didn't meet expectations, their beloved would start throwing the wedding china at someone's head.
Suitors are directed to her site.
Posted by Dr. Manhattan at 12:20 PM | Permalink