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Explaining ENRON (No LBC)

To: "Spridgets-Autox.team" <spridgets@autox.team.net>
Subject: Explaining ENRON (No LBC)
Date: Fri, 8 Feb 2002 16:59:56 -0500
How to Explain ENRON to Your Children:

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. Your neighbors help take care of them and
you share the milk.

Totalitarianism - You have two cows. The government takes them both and
denies they ever existed and drafts you into the army. Milk is banned.

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 Venture 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 Islands 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.

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