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

To: Raymond Duray who wrote (3087)	2/26/2002 12:58:38 PM
From: Thomas M.	Read Replies (2) \| Respond to of 5185

I watched Skilling for a few minutes today. He was making the very accurate point that Enron went down because of a situation similar to a bank-run. He mentioned the clauses in derivative contracts that allowed the creditors to pull out when things got bad, thus exacerbating a liquidity squeeze and creating a fatal situation. He then went on to extol the FDIC. Two points: 1. He signed those contracts. So, Enron is saying "a deal is a deal" when it is Enron vs. California, but is whining "that isn't fair" when the shoe is on the other foot. 2. In the classic Walter Wriston fashion, Skilling is calling for increased government intervention in the fields in which he is the prey and the markets are the predator, though he was calling for decreased intervention where Enron was the predator and California was the prey. For those who don't remember, Walter Wriston was the Citibank CEO who constantly called for decreased regulation of bank activities, but then always screamed for government assistance when his recklessness got Citibank into trouble. Classic "bankster" mentality (to borrow a term from the 1930s). Tom

To: Raymond Duray who wrote (3087)	2/26/2002 3:54:31 PM
From: Patricia Trinchero	Read Replies (1) \| Respond to of 5185

There were some adds on TV about it........We will have to wait and see what happens. If Riordan gets the nomination than I am sure it will be debated. A radio talk show host that is usually quite conservative made that statement about Riordan and is defending Gray Davis. THe talk show host is a nuclear physicist and has a massive background in energy.I am not necessarily a fan of Davis but will wait and listen to the debate. Simon is definitely not my choice, but he might be the choice of the right wing. I heard this morning that he has a 20% lead.............that info I find suspicious. However, the Ca Republicans have been quite "right" as of late. Some Democrats have been entertaining a vote for Riordan as have I.............but like I said before........I will wait and see. Pat