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On Friday 01 February 2002 10:31, Erika L. Walker-Arnold wrote:
: ENRON EXPLAINED: In case you were wondering how Enron
: came into so much trouble, here is an explanation
: reputedly given by a Texas A&M professor to explain it
: in terms his students could understand.
:
: Capitalism
: You have two cows.
: You sell one and buy a bull.
: Your herd multiplies, and the economy grows.
: You sell them and retire on the income.
:
: Enron Capitalism
: You have two cows.  You sell three of them to your
: publicly listed company, using letters of credit
: opened by your brother-in-law at the bank, then
: execute a debt/equity swap with an associated general
: offer so that you get all four cows back, with a tax
: exemption for five cows.  The milk rights of the six
: cows are transferred via an intermediary to a Cayman
: Island company secretly owned by your CFO who sells
: the rights to all seven cows back to your listed
: company. The annual report says the company owns eight
: cows, with an option on six more.
:
: Now do you see why a company with $62 billion in
:

heh, you were Lined.

Geo



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