query: Marx on fraud

["Devine, James" <jdevine@xxxxxxx>]

Where is it, in volume III of CAPITAL, that Marx talks about how financial
fraud becomes common in a financial bubble and is revealed when the bubble
pops (or something like that)?

BTW, thinking about the current melt-down of Arthur Anderson accounting, it
seems a symptom of market failure: auditors compete for the dollars of those
who pay them (companies like Enron). There is thus a bias (also seen with
economic forecasters) toward telling the client what he or she wants to hear
rather than "rocking the boat." Auditors seem to fail all the time, as in
Orange County (CA) back in 1994.

Jim Devine jdevine@xxxxxxx &  http://bellarmine.lmu.edu/~jdevine