Is the US going the way of the USSR / East Europe ?

It may be that I am jumping too far ahead, seeing things that do not exist.  But the paranoia that seems to prevail, the funding for the office of Homeland Security and anti-terrorism measures, the move to recruit millions of "informers' within the country .... will the US become the next USSR ?  With the US Government gaining intrusive powers are people not questioning whether the rights of individuals are being protected ?  I just came across the Citizen Corps website when searching for information on "Operation Tips".  Initiatives like the Neighbourhood Watch Program and Operation Tips, though well-intentioned, might very well go out of hand.  People might end up spying on each other and mistrusting each other.

What brand, Capitalism ?

Stock options and manipulated or fictitious accounting figures --- is there a correlation between the two ?  If companies have to report quarterly results and the CEO knows that his retaining his position depends on the stock price and the rest of the management team know that their retaining their jobs and earnings depend on the financial results, what better recipe than a combination of stock options and lax oversight by the board and auditors who are willing to be manipulated ?  It is a win-win for everyone except for the investor and the community.  Truly, the lack of responsibility and ethics in the US has brought out the dark side of capitalism -- or capitalism as practised in it's country of origin.  What are the leading factors ?

1.  The Board evaluates the CEO performance on the basis of the stock price.  US corporates focus on "maximising shareholder value" -- meaning "maximising the stock price" rather than contribution to the community.

2.  Companies present forecasts and pro-forma figures quarterly.  The stock markets are highly volatile and react quickly to any changes in financial figures.

3.  CEOs and the top management team depend heavily on stock options -- the benefits of which can be achieved only if the stock goes up on the stock exchange.

4. Stock options are not expensed [aren't they somewhat like the way WorldCom cooked its books, treating an outflow as capital expenditure and the corresponding inflow as revenue income ?]

5.  Auditors depend on their clients for revenues in their consulting business and cannot afford to offend their clients.