Here the proofreading changes have been accepted.
Obviously, the Enron situation has everyone concerned about the lack of financial controls in place, and whether there will be other Enron-related accounting disasters. Certainly earnings quality is a concern for investors, and the Enron fiasco has only heightened investor sensitivity at a time when the market is already struggling with valuation issues. TSI believes that over the short term, the market will continue to decline, but eventually the market will snap back as the market is overreacting to Enron.
Enron was a concept company, not a product company, and there are few if any other companies with an Enron type of balance sheet. It is unlikely that other Enron-related companies will emerge. No question—Enron was a horrible catastrophe that will impact the lives of many people for many years to come.
The market and investors are responding to three very negative and somewhat unrelated events that have frayed investors' nerves, i.e., the September 11 terrorist attacks, the most severe bear market for technology stocks ever, and now Enron. Over time, TSI believes that the market can repair the damages and overcome current short-term uneasiness. The recession will end, investors will eventually come back to the market, and hopefully now our world is a safer place for our children because of the focus by the United States and other world countries on curtailing terrorism.