(Sorry if someone has already posted this -- I'm almost a week behind -- walt)
Subject: How to Explain Enron: > >> > >> > >> Feudalism - You have two cows. Your lord takes some of the milk. > >> > >> Fascism - You have two cows. The government takes both, hires you to > take > >> care of them, and sells you the milk. > >> > >> Communism - You have two cows. The government owns them, but your neighbors help take care of them, and after the government keeps or sells 90%, you and the neighbor share the milk that's left. > >> > >> Totalitarianism - You have two cows. The government takes both of them, > >> denies they ever existed and drafts you into the army. Milk is banned. > >> > >> Capitalism, in theory - 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 Venture Capitalism - You have two cows. You sell all 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 the > >> majority shareholder 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 one more. You declare bankruptcy and take the fifth.
