-----Original Message-----
From: Jim Lokay [mailto:Lokay@bigfoot.com]
Sent: Monday, January 28, 2002 5:14 PM
To: Lokay, Michelle
Subject: Enron Capitalism


A primer on how to succeed in business:

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 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 your CFO
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
six more.