I was recently reading an article about how financial accounting has increasingly deviated from the ratios expected by Benford's Law. (Benford's Law and Decreasing Reliability).
The author discusses the S&L crisis, but that's not enough to say that Benford's Law is a good predictor of performance. How reliable of a predictor is Benford's Law for anticipating crises or even for company failure on a case by case basis? If you could cite specific examples from history, that would be great.