Governments are putting up enormous sums of taxpayers money to "restore confidence" in the existing status quo

The US government is putting up 700 billion dollars and other governments hundreds of billions more to restore confidence in existing business practices. They proclaim the need to solve the problems that caused the financial crisis. But the money is to be used to bail out the losers and address the symptoms of the problems. No money is earmarked to address the actual problems in the way enterprises manage and account for their capital, the performance of their capital, and the results produced from the utilization of the capital. The objective is to restore confidence in the institutions and methods used, rather than improving the institutions and methods to prevent re-occurrence of the problems.

The money being spent will not solve the problems or prevent re-occurrence of the problems

20 years ago, large government bail-outs failed to address the real savings and loan management problems. Now we have a financial crisis many magnitudes greater. What will the next financial crisis twenty years from now bring? The problem is not just with financial institutions, but also in the fundamentals of management used by all enterprises. It is imperative that governments recognize the problems in 20th century management that do not allow enterprise to manage the value they create in economic output results, the return on and worth of specific capital investments, all the costs they incur in performance, the value-added to the business that provides investment returns, and the realistic future value-added that provides capital worth. More rules, regulations, and compliance reporting just burden the enterprises and do not address the problems. All current accounting and compliance reporting is incomplete and inaccurate and does not account for or report the actual business.

20th century accounting accounts for cash and does not account for the business

20th century accounting and generally-accepted accounting principles employed today were devised to account for money in actual and accrued cash expenditures and receipts. Capital is only partially accounted for in tangible assets that are easy to record for known cash outlays. Other capital produced by the business is not recorded as capital and may be labeled as "intangible assets" and ignored. The actual business is not accounted for today. Accounting is against an arbitrary and contrived chart of accounts structure laid over the business. Today we have unknown investments in capital solutions, unknown capital worth, unknown value creation, unknown performance costs, unknown value-added across the business, and unknown return on investments.

20th century accounting must be replaced by professional 21st Century Records Management

Accounting must be replaced by professional facility record-keeping based on actual business management, utilizing the power of 21st century information technology. A new set of record-keeping principles must be used to record and reconcile all aspects of the actual business, not just reusable financial facility equipment and consumable cash facility supply solutions. All financial and not-financial business data must be captured for all business result value and quality created, all capital of managed capacity and worth utilized, and the cost and effectiveness of performance in utilizing the capital to produce results. Transactions must be generated by the business to record actual result volumes produced, actual value created leading to revenue values, actual performance costs and effectiveness for all capital utilized, and actual value-added to results across the complete business leading to profits. Capital must be managed to capture all cash expenditure investments by solution to be amortized in performance costs against results produced to manage value-added across the business, and to evaluate result value-added that provides capital worth to justify investments and provide the return. All capital solutions must be managed as assets of positive capital worth or as liabilities of negative capital worth to know full business net worth.

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