[link|http://dailynews.yahoo.com/h/nm/20020204/bs/markets_stocks_dc_1159.html|Truthfulness does matter after all]

Excerpts:

Wall Street is grappling with ``Enronophobia,'' a crisis of confidence after energy trading giant Enron Corp.'s (ENRNQ.PK) complicated accounting problems led to its record collapse and cast a pall over the market.

Shares of firms with complex financial structures, ranging from conglomerates Tyco International Ltd. (NYSE:TYC - news) and General Electric Co. (NYSE:GE - news) to drugmaker Elan Corp. (NYSE:ELN - news) and network equipment maker Enterasys Networks Inc. (NYSE:ETS - news), fell. Telecommunications stocks slid on worries a recent rash of bankruptcies will snowball...

General Electric dropped as investors dumped shares of companies with a long history of mergers and acquisitions, and complex accounting methods.

``GE is an excellent company that has been forthright for years about what they do. But it is a very complex company, not a one-product company everyone can understand,'' said Brian Pears, head of equity trading at Victory Capital Management. ''It makes sense people might take shots at GE.''

Shares of the diversified conglomerate, whose operations range from financial services to aerospace and appliances, fell $1.80 to $35.05. The stock was the fourth-most active issue on the New York Stock Exchange (news - web sites).

Tyco, the Big Board's most active stock, was knocked down by a report in The Wall Street Journal that Tyco said it spent around $8 billion on more than 700 acquisitions that were never publicly announced. Tyco lost $5.46 to $31.40.

``You can't believe financial statements,'' said Mace Blicksilver, a money manager at Marblehead Asset Management. ''It's not like just a bad quarter or an earnings miss -- you're re-evaluating the entire price-to-earnings ratio of the market place.''

Enterasys Networks Inc. (ETS.N) plunged 56 percent after the network equipment maker said it has delayed release of its fourth-quarter and 2001 fiscal-year financial results in order to review details of a $4 million sales contract. Shares sank $6.05 to $4.75.

And Elan Corp. (ELN.I) (ELN.N) plunged after the Irish drugs firm warned revenue growth this year would be lower than expected. The news followed a share decline last week on worries about the firm's accounting practices. The stock lost almost half its value, falling $14.48 to $15.48 and was the second-most active NYSE stock after Tyco.

``This is an unmitigated disaster -- we think when investors get through the details, you'll find out shenanigans have accounted for the majority of Elan's earnings,'' said David Maris of investment bank Credit Suisse First Boston.

Telecoms stocks fell sharply as fears over the industry's health intensified on the heels of bad news by Global Crossing Ltd. (GBLXQ.PK), WorldCom Inc. (Nasdaq:WCOM - news) and Williams Communications Group Inc. (NYSE:WCG - news).

High-speed communications network operator Williams said earlier its banks had warned that it may be in default under its credit agreement. Global Crossing is facing an investigation of its accounting methods by the U.S. Securities and Exchange Commission (news - web sites), and WorldCom continues to face pressure amid concerns about its debt ratings.

WorldCom fell $1.59 to $8.02 and was the most active stock traded on Nasdaq. Williams fell 40 cents to $1.02. Global Crossing, which has declared bankruptcy, last traded at 9.2 cents.

I say:

This is the trouble with seeing the world in blurry shades of gray. You never know where you stand until too late.

Let's hope the SEC enforces some binary right and wrong on corporate America. Finances should not be subject to interpretation.