SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Non-Tech : Derivatives: Darth Vader's Revenge
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Henry Volquardsen who wrote (1085)4/3/2002 6:48:56 PM
From: JBTFD  Read Replies (1) of 2794
 
<<if you don't buy it then why don't you explain exactly how Enron lost money because of derivatives and not because of their failed business strategy. >>

The Rhythms New Connections Raptor and the losses it incurred at the expense of the Enron shareholder is one example.

My point is that the derivative transactions and use of special purpose entities gave them the rope they used to hang themselves. They used derivatives and special purpose entities to engineer their balance sheet which enabled them to take on the gargantuan debt.

To say that derivatives had nothing to do with it is in my opinion laughable. They were at the center of what went wrong with the company. They made some lousy business decisions, yes, but without the derivatives and special purpose entities they would not be in as bad shape as they are now in.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News