The point is accounting doesn't just report numbers, it drives the default strategy of "This is too expensive and costs should be cut."

Management should know there are alternative strategies, and ideally should know which of those is best.

But accounting policies bake strategic implications into their reporting.

Which is why we are where we are - on the verge of a catastrophic crash, because genius Wall St analysts are chasing the gilded AI bubble, while the rest of the economy is starved of consumer spending.

With much more to come.

Casual observers may not know that pundits have been calling for a catastrophic collapse in the markets for as long as I’ve been watching (early 80s). There have been a lot of dips and a few recessions in that time obviously, but beware the “it’s different this time” doom sayers.