Warning: include_once(/home/tabrez/www/talk/mtrefsearch.php) [function.include-once]: failed to open stream: No such file or directory in /home/tabrezsyed/mandalivia.com/talk/archives/000030.php on line 118
Warning: include_once() [function.include]: Failed opening '/home/tabrez/www/talk/mtrefsearch.php' for inclusion (include_path='.:/usr/local/lib/php:/usr/local/php5/lib/pear') in /home/tabrezsyed/mandalivia.com/talk/archives/000030.php on line 118
January 31, 2002
Recipe of the day: Enron earnings soup
How to make earnings out of nothing: First make a deal with a major player like Blockbuster to launch an exciting new service. Drum up buzz. Spin a new corporation to make the deal viable. Let the corporation pay you (Enron) for the rights to undertake the partnership. The corporation needs to pay you $110 million. The corporation borrows money from a bank. You guarantee the corporations loan with Enron stock. The corporation borrows $115 million and pays you $110 million. You immediately book it as earnings for the quarter.
The deal with Blockbuster goes South. Your stock starts to dip. Print more stock to keep the bank at bay. voila serve with a unrepentent CEO and garnish with political contributions.
Posted at January 31, 2002 07:40 PMComments
Post a comment