The Big Three Market DriversLearn Capital Flow AnalysisDo Companies Cheat Shareholders?Buybacks: The Fraud of the CenturySocialism vs. Free EnterpriseDo You Believe Official Statistics?Globalization: Good or Bad? | Subject: GAO The Government Accountability Office (GAO) is the audit, evaluation, and investigative arm of the United States Congress. It is located in the legislative branch of the United States government.
The GAO was established as the General Accounting Office by the Budget and Accounting Act of 1921 (Pub.L. 67-13, 42 Stat. 20, June 10, 1921). 1921 Act This Act required the head of GAO to “investigate, at the seat of government or elsewhere, all matters relating to the receipt, disbursement, and application of public funds, and shall make to the President…and to Congress…reports (and) recommendations looking to greater economy or efficiency in public expenditures” (Sec. 312(a), 42 Stat. 25). According to GAO’s current mission statement, the agency exists to support the Congress in meeting its constitutional responsibilities and to help improve the performance and ensure the accountability of the federal government for the benefit of the American people. The name was changed in 2004 to better reflect the mission of the office. While most other countries have government entities similar to the GAO, their focus is primarily on conducting financial audits. The GAO’s auditors conduct not only financial audits, but also engage in a wide assortment of performance audits.
The GAO is headed by the Comptroller General of the United States, a professional and non-partisan position in the U.S. government. The Comptroller General is appointed by the President, by and with the advice and consent of the Senate, for a 15-year, non-renewable term. The President selects a nominee from a list of at least three individuals recommended by an eight member bipartisan, bicameral commission of congressional leaders. The Comptroller General may not be removed by the President, but only by Congress through impeachment or joint resolution for specific reasons. Since 1921, there have been only seven Comptrollers General, and no formal attempt has ever been made to remove a Comptroller General. The long tenure of the Comptroller General and the manner of appointment and removal gives GAO a continuity of leadership and independence that is rare within government. (Wikipedia Jan 2010) Smooth sailing unlikely By John Schroy, on May 20th, 2010 |   Markets can be inefficient for different reasons and persist for long periods. The transition between one type of inefficient market to the next is usually a period of strife and uncertainty which may last five to fifteen years. Looking back at how the economy emerged from previous transitions, I note that in each new period, equity prices started at reasonable levels. This was true at the beginning of the Roaring Twenties, the Post WW II Period, and the Reagan Era. It is as if markets, recognizing prior inefficiencies ‘reset’ and start over. However, for the current market to ‘reset’, it will be necessary for equity prices to fall considerably, which will have dire consequences. Baby Boomers' retirement threatened? By John Schroy, on August 5th, 2006 |  In a study of the effect of the retirement of Baby Boomers on the price of equities, the GAO assumed that equities will provide real returns of 7% over the next decades. This figure is often cited in Wall Street promotional literature, but has no scientific basis. Baby Boomers whose retirement plans are predicated on a 7% return on equities may find out, too late, that they have been misled by marketing flim-flam. Don't worry, be happy By John Schroy, on August 2nd, 2006 |  In July 2006, the Government Accounting Office issued a report saying that the retirement of the Baby Boomers should not have a negative effect on stock prices. This article reviews the GAO reasoning and concludes that the government’s ‘Don’t worry, be happy’ conclusion is not credible. The Woodstock kids will soon have to think about assisted living costs. Featured articles on inside pages | Site navigation Capital Flow Watch has hundreds of articles on economics and investments. Articles have excerpts on the front pages, and on tag, category, search and archive pages.
» Blog Guide |
Topics: 
Popular Articles