Response to the following problem:
The thoughts of Warren Buffett Warren Buffett is one of the world's shrewdest and most successful investors. He believes that the accounting scandals mentioned above were perpetrated during the ‘new economy boom' of the late 1990s when confidence was high and exaggerated predictions were being made concerning the future. He states that during that period: You had an erosion of accounting standards. You had an erosion, to some extent, of executive behaviour. But during a period when everybody ‘believes', people who are inclined to take advantage of other people can get away with a lot. He believes that the worst is now over and that the ‘dirty laundry' created during this heady period is being washed away and that the washing machine is now in the ‘rinse cycle' .