Business | Cooking the books

A sleuth’s guide to the coming wave of corporate fraud

Mischief is cyclical—it is bred in good times and uncovered in bad times

The bad news just keeps coming. Ten months after America’s stockmarket peaked, its big technology companies have suffered another rout. Hopes that the Federal Reserve might change course have been dashed; interest rates are set to rise by more than previously thought. The bond market is screaming recession. Could things get any worse? The answer is yes. Stockmarket booms of the sort that crested in January tend to engender fraud. Bad times like those that lie ahead reveal it.

This article appeared in the Business section of the print edition under the headline “A sleuth’s guide to corporate fraud”

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