India's Enron

The buzz is about the tremendous accounting fraud at Satyam, one of India's supposedly most successful outsourcing giants. Today's New York Times article, "Financial Scandal at Outsourcing Company Rattles a Developing Country," captures some of the uncertainty created by this scandal. For Indian coverage, rediff (sort of like India's Yahoo) provides complete coverage of "the Satyam fiasco." India is just learning about the downside of capitalism, with longer work hours being mandated by many firms, layoffs at others, and now doubt about whether any of the financial statements produced by any firms can be believed. Let's see what the SEBI (India's SEC) does, especially in light of CEO Mr. Raju's disappearance.