READ MORE - An anonymous email
> In case you were wondering how Enron came
into so much trouble, here is
> an explanation, reputedly given by an Agriculture Economics professor
at
> Texas A&M to explain it in terms his students could understand.
>
> CAPITALISM:
>
> You have two cows.
>
> You sell one and buy a bull.
>
> Your herd multiplies and you hire cowhands to help out on the ranch.
>
> You sell cattle.
>
> The economy grows and eventually you can pass the business on and your
>
> cowhands can retire on the profits.
>
>
> 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 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 on
> one more.
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