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Non-Tech : The ENRON Scandal -- Ignore unavailable to you. Want to Upgrade?

To: Raymond Duray who wrote (2558)	2/6/2002 1:10:16 PM
From: Ron	Respond to of 5185

The Enron cows: Feudalism: You have two cows. Your lord takes most of the milk. Fascism: You have two cows. The government takes both, hires you to take care of them and sells the milk. Communism: You have two cows, which are owned by the government. Your neighbors help take care of them and you share the milk, but the government takes most of 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. Nazism: You have two cows. The government shoots you and takes both cows. Capitalism: You have two cows. You sell one and buy a bull. Your herd multiplies, 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, you 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. At this time you borrow against an outside partnership and distribute proceeds to politicians. The milk rights of the six cows are then 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 to buy one more.