----- Original Message -----
From: <James_Pelland@Dell.com>
To: <cweldon@houston.rr.com>; <pat.kannar@intel.com>;
<patrick.keating@commerceone.com>; <melhaj@yahoo.com>; <mchadduck@yahoo.com>
Sent: Wednesday, January 23, 2002 5:05 PM
Subject: FW:leverage


> Feudalism
> You have two cows.
> Your Lord takes some of the milk.
>
> Fascism
> You have two cows.
> The Government takes both, then hires you to take care of them and sells
> you the milk.
>
> Communism
> You have two cows.
> You must take care of them, but the government takes all the milk.
>
> Capitalism
> You have two cows.
> You sell one and buy a bull.
> Your herd multiplies, and the economy grows.
> You sell them and retire on the the income.
>
> Enron
> You have two cows.
> You borrow 80% of the forward value from your bank then buy another cow
> with 5% down and the rest financed by the seller on a note callable if
> your market cap goes below $20B at a rate 2 times prime.  You now sell
> three cows to your publicly listed company, using letters of credit
> opened by your brother-in-law at a 2nd bank, then execute a debt/equity
> swap with an associated general offer so that you get four cows back,
> with a tax exemption for five cows.  The milk rights of six cows are
> transferred via an intermediary to a Cayman Island company secretly
> owned by the majority shareholder who sells the rights to seven cows
> back to your listed company.  The annual report says that the company
> owns eight cows, with an option on one more and this transaction process
> is upheld by your independent auditor with no negative balance sheet
> implications, followed by a press release that announces that Enron as a
> major owner of cows may begin trading cows via a new internet site "COW"
> (cows on web).
>