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The bankruptcy of WorldCom and Enron was a shock when it happened. No one expected that these two top blue chip companies would go bankrupt because of corporate mismanagement and accounting malpractice. The estimated costs to the economy that these scandals caused are between $37 billion to $42 billion off the US gross domestic product. Not only has this caused a lost in the GDP but also the major factor is the lost in consumer confidence. Without consumer confidence, there would be no fuel for the economy to go on. Without consumers spending in the market, it would cause a weakening in the economy. The bankruptcy of publicly traded companies happened. But it was shocking to see a publicly traded company to file for a bankruptcy not just due to the economy but by other factors. Also, this type of company was not just some weak and small company, but it was suppose to be a strong and stable in preference. What was very important was that it had an immediate affect on us but a domino effect in the economy. It didn’t just affect the employees of that company but it affects the economy as a whole. With a weakening US economy bankruptcy of publicly traded companies, the amount of companies that went bankrupted had gone up from 1