From: CurtAdams@aol.com
Date: Tue Jan 22 2002 - 10:57:18 MST
In a message dated 1/22/02 7:40:33 AM, mlorrey@datamann.com writes:
>What I find so immensely odd about the Enron debacle is that it was
>designed to fail: all successful companies use their offshore
>subsidiaries to hide profits from the tax man, not to hide losses from
>the stock man. Where, exactly, were they expecting those losses to
>eventually end up? To quote an Enron tv commercial "Why?"
They leadership of the company was trying to hide embezzlement.
They got into risky business deals as partnerships and the company
insured them against loss; so they were embezzling the risk premium.
I expect some of these partnerships made the principal lots of
money and hiding that is part of the drive behind the shredding
frenzy Enron's been in.
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