Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Dealer who wrote (44536)	11/29/2001 1:48:10 AM
From: Cactus Jack	Read Replies (1) \| Respond to of 65232

Dealer, We're going to find out how many other ENEs are out there lurking sooner than we'd like, I'm afraid. How these guys get away with cooking the books is amazing. jpgill

To: Dealer who wrote (44536)	11/29/2001 4:51:57 AM
From: stockman_scott	Read Replies (4) \| Respond to of 65232

The Prudent Bear on 'The ENE Mess'... <<...Elsewhere, ENE was crushed for 85 percent to 61 cents, as it appears bankruptcy is a forgone conclusion with the DYN deal now completely falling apart. The rest of the utilities (ENE’s counterparties) were sold as well, as the UTIL slipped 3 percent to a new low. This is just one big mess. I called this another Long Term Capital a couple months ago, and it appears to be hitting the stage that LTCM never made it to: a total collapse. The problem is (as was the case with LTCM) if a big derivative player goes down, then uncertainty is created around the whole system since nobody knows whose “promises” (which is all derivatives are) are good and whose aren’t. It’s like a house of cards (for lack of a better description.) All the cards lean on each other and are fine until you remove one, and that causes a chain reaction collapse of the whole structure. There’s no way to know what ENE’s positions are or how or who it will affect but this is no small player. With 23 billion in debt and being the largest energy market maker out there (they have a metals arm in London and make markets in other commodities as well), this is going to hurt a lot of people. Just what exactly all the derivative damage adds up to is unknown. It’s just one big black hole at the moment, and the unknown may actually be worse than the reality...>> More available at... prudentbear.com BTW, Dealer I strongly believe that the guys running ENE should be be held accountable and we should consider 'putting them in jail'...It will be interesting to see how it all plays out. Regards, Scott