Tom Ramcigam (magicmarmot) wrote,
Tom Ramcigam

Watching The Smartest Guys In The Room.

This is a documentary on the collapse of Enron. It is certainly not politcally centrist, but it is an amazing story of greed, intrigue, greed, backstabbing, greed, machismo, and greed.

The economics are beyond my comprehension, but what it seems like is that Enron shucked off unprofitable ventures onto "companies" that existed solely to purchase these ventures, and that those companies were backed by Enron stock.

So Enron essentially bought off its debt with it's own stock. The stock value goes up, so a debt suddenly becomes income.

That's wild.

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