--- In [email protected], TurquoiseB <[EMAIL PROTECTED]> wrote:
> --- In [email protected], Peter <[EMAIL PROTECTED]> wrote:
> > Vedic bonds? I don't think so! No reputable or
> > disreputable financial institution is going to touch
> > anything in the movement. They'll do their due
> > diligence and very quickly conclude that the TMO and
> > MMY are profoundly unstable and an exceedingly high
> > financial risk.
> 
> Ya never know.  In some important respects, the
> TMO does business pretty much the way that Enron
> did, and until the bubble burst, Enron was the
> darling of the investment banks.
> 
> One of my favorite of Enron's scams (written up
> in, I think, Fortune) was when they went to invest-
> ment banks to get capital for a new joint venture
> company they were planning with Blockbuster Video.
> It sounded a bit dicey, but with the combination 
> of the Enron name and the Blockbuster name, the
> banks loaned the new front company billions of
> dollars in startup money.
> 
> It turns out that Blockbuster had *never* agreed
> to be part of the scheme, recognizing it as a 
> scam at first sight.  But Enron told the banks
> that Blockbuster was a solid partner anyway.  2-3
> weeks after the money had been transferred to the
> new startup company, lo and behold! the company
> had declared bankruptcy and none of the money 
> could be found; the banks lost every penny of
> their investment  That had been Enron's plan all 
> along.
> 
> Compare and contrast to the TMO's history of 
> projects like Vedaland, the new "world's tallest
> building," etc.  Same business model -- get naive
> people excited enough about a project to invest
> money in it, have the project "fail," keep the
> money.
> 
> All I can say is, if this is how being in tune
> with the "Laws Of Nature" works, I'll stick to 
> being adharmic.

Not really a good representation of the Enron Blockbuster joint
venture*, but if your point is that Enron used smoke and mirrors to
fool the investment community for some time -- before the weight of
their distortions and schemes fell apart, and the TMO may try the
same, perhaps there is a parallel. The problem is, Enron wasfor some
years  a succesful, powerful and "respected" company based on real
assets and earnings, prior to its shenanigans. It had a track record
of real earnings and "trust" among investors, upon which to take
advantage. The TMO has neither.

* 1) It was a joint venture between Blockbuster and Enron. Blockbuster
most certainly agreed to be a part of the joint venture. After some
time, they backed out. 

2) Investment bankers don't typically make "loans" -- they invest
venture capital for a piece of the ownership of the company or venture
-- a  claim on future earnings.

3) the investment banks do their own due dilligence -- and are usually
quite hard nosed about it. They business plan for the venture
projected huge returns -- and there was some sneaky accounting
involved -- I forget the details.  But the investment bankers were
"taken" by their own incompetence in not digging deeper into the numbers.






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