Industry balance sheets are not accounting adequately for future environmental cleanups. Analysts look at bad loans and strength of assets. They should also be looking at liabilities.
Including contaminated groundwater and heavy-metal pollution, asbestos, oil and gas leaks. And obligation from1970’s laws such as Superfund. Companies have had to add accruals to their books.
The question: How well is Corporate America accounting for this mass of liabilities. Many major company books are showing only minimal contingent costs of this kind.
At a time when they are in the midst of a deep recession that is beset by hard government taxes and restrictions.
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