First, you assume without proof that Sarbanes-Oxley will actually prevent the next Enron. Goals aren't results. I do not accept this as unarguably obvious. The rule of thumb is that it is easier to undetectably game complex systems than simple ones.
Second, you've not mentioned the fact that Sarbanes-Oxley has real costs, not just in terms of direct compliance but also the business that they've simply shut out in advance because the businesses knew they couldn't afford compliance.
Finally, the really relevant metric is not merely "How can we as a society purchase assurance against another Enron at any cost?", but "How can we as a society purchase assurance against Enron in the most cost-effective manner?" I am deeply skeptical that SOX is the correct answer to this question, or even within spitting distance.
You've also implicitly bought into the political duality and assumed that if I'm not for it I must be in the "conservative half", even after I just said I'm libertarian quite nearby. I don't particularly care about whether it's "liberal" or "conservative" solutions, I care about working in the most cost-effective manner. SOX is almost certainly not it.
People are bad about accounting for disasters, people are really really bad at accounting for regulations. The twin specters of mistaking goals for results and counting only benefits without the costs loom over pretty much every discussion.
Sarbox only applies to public companies, no? I wasn't papering over the costs, I assumed we both knew they exist. Public companies can typically afford a little accounting overhead, I don't think anyone's being dissuaded from starting a business because if they go public and become megamillionaires, there will be marginally more sarbox-related accounting work than there would've been anyways.
Libertarian is functionally equivalent to conservative in a post-january-2009 world. Sorry, it's not my fault, blame the tea party. The point still holds regarding the triumphant freshman class of 2010-2012 -- where are these guys on reforming sarbox? They're too busy ranting about socialism or death panels on Fox News and threatening to default the government.
Like I said, I'm all for reform that makes it cheaper, more effective or more efficient. Where are you actually disagreeing with me here?
EDIT: I actually do think it says something in favor of sarbox that nobody had an Enron style accounting disaster during the implosion. I mean, given that we saw every other form of financial bad behavior on display, why not that form too? Impossible to prove a negative, of course.
Second, you've not mentioned the fact that Sarbanes-Oxley has real costs, not just in terms of direct compliance but also the business that they've simply shut out in advance because the businesses knew they couldn't afford compliance.
Finally, the really relevant metric is not merely "How can we as a society purchase assurance against another Enron at any cost?", but "How can we as a society purchase assurance against Enron in the most cost-effective manner?" I am deeply skeptical that SOX is the correct answer to this question, or even within spitting distance.
You've also implicitly bought into the political duality and assumed that if I'm not for it I must be in the "conservative half", even after I just said I'm libertarian quite nearby. I don't particularly care about whether it's "liberal" or "conservative" solutions, I care about working in the most cost-effective manner. SOX is almost certainly not it.
People are bad about accounting for disasters, people are really really bad at accounting for regulations. The twin specters of mistaking goals for results and counting only benefits without the costs loom over pretty much every discussion.