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Now that Enron is back in the news, are we any safer today from major bankruptcies than we were a year ago?

Answer: This is a very broad question. If what you are asking is whether financial reporting is more accurate today, the answer is yes thanks to accounting reforms involving CPA firms and laws including the Sarbanes-Oxley Act. If the question is which sector of the economy is in trouble, one sector is commercial airlines. According to a recent report, major U.S. carriers are expected to post losses in excess of $1 billion this year. The 'good' news is that this is down from the $3 billion in losses posted in 2002! If you are asking if business bankruptcies will continue to decrease as they did in each quarter of 2003 compared to 2002 and 2001, the answer is I do not know - but I hope so.

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