-----Original Message-----
From: Hala Habal [mailto:hhabal@bizjournals.com]
Sent: Friday, January 18, 2002 2:08 PM
To: Molly Meyers
Subject: FW: This is good!




----------
From: bbagley <bobbagley@bullish.org>
To: "Bagley, Bob" <bbagley@bullish.org>
Subject: This is good!
Date: Fri, Jan 18, 2002, 12:44 PM



How to Explain Enron to Your Children:

Feudalism - You have two cows. Your lord takes some of the milk.
Fascism - You have two cows. The government takes both, hires you to
take care of them, and sells you the
milk.
Communism - You have two cows. Your neighbors help take care of them and
you share 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.
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 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, 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.

Have a good weekend!