Enron

Ken King

A little rusty but not crusty
PREMO Member
ShellyCW,

So you can tell someone's party affiliation from their postings.  Do you work with Madame Cleo or something? What is my affiliation?  From what I observe it is some people who can see a witch-hunt when it’s happening and others who buy into just about everything the press says (as your heroes Blue and Foxy have done, they only regurgitated what others have written or copied it in it’s entirety) when it meets their specific agenda.  
 

vraiblonde

Board Mommy
PREMO Member
Patron
Ken, I don't think you have to be Madam Cleo to realize where a person stands politically when they are stating their views in plain English.  I, too, like to see more people with a different viewpoint on here - makes it more interesting.  TrueBlue and Foxy state their case without vitriol, which makes it easy for me to respond in kind.  It's those other freaks that get me all wound up :lol:  Besides, I'm using Christy as my role model - she never gets overheated, just debates her position rationally.

Besides, I'm always fascinated by anyone who thinks Clinton was anything other than a money-grubbing sex-crazed idiot.  If you insult his supporters, they won't tell you why they like him and then you can't prevent it from happening again.
 

Christy

b*tch rocket
Vrai, me a role model? :confused:  :crazy:  Hardly!  TT would probably tell you that I'm a venom spewing psychopath!  :nerd:  Especially when it comes to religion or demonizing my boy Harry Potter.  

I pity the fool who messes with my literary entertainment! :spank:  (How's everybody like my  Mr. T impression?) :lmao:
 

foxylady

Member
Ken, et al ---- my post was merely to point out that some of you jumped very fast to the old "Clinton did it" argument rather than actually discuss the subject matter.  I have yet to see anyone actually break down the points made by Blue one by one and prove Blue wrong.  I just like to see good, old-fashioned reasoning and common sense when discussing issues.  Leave the emotion out of it.  Vrai asked someone to explain the Enron issue .... is this the best you can do?

:bubble:
 

Ken King

A little rusty but not crusty
PREMO Member
Well Foxy, I see you have been an abundance of information concerning Enron, NOT.  All you did was post someone else’s thoughts on Clinton bashing.  You say, “Leave the emotion out of it.”  Why not take your own advice, do the same and provide some of your insight into Enron?  

While Enron might have some of you confused it doesn’t confuse me at all.  They were just one of a growing number of companies going after that almighty dollar anyway they could lay their grubby hands upon it.  The played right at the edge of the law and utilized unsound accounting practices of shielding debt from investors and stockholders.  When it became obvious that they were digging a deeper hole those at the top, and in the know, bailed out selling their options to the unsuspecting fools that bought them up.  None of this is relevant to our energy policy as the only connection that can be drawn is that Enron traded energy on a major scale.  Which they were doing during the previous administration also.  It has been pointed out by several that Enron received some pretty sweet deals from the Clintonistas, to you this is not relevant, to others it is.  Why didn’t anyone care before?  Because all those people hadn’t been swindled yet, they were all sitting around fat, dumb, and happy.  This problem with the hiding of debt wasn’t something that  came about overnight, it took Enron years to establish their “operation” just as it took time for it to come back and bite them in the butt.  The blame for the Enron failure rests upon their shoulders and those of their accounting firm (Anderson).
 

Larry Gude

Strung Out
Foxy/Shelly,

Near as I can tell the ONLY mention of Clinton early on was by Frank and it was simply about the Lincoln bedroom thing. Much easier to find who HAD not been there.

Then, your boy blue launches into his reactions. Fine. He makes his feelings obvious.

I responded to some false accusations and premises he/she/it (trueblue) brought up in the survey forum about Somalia. He showed his stripes by ignoring my response and diving back in for more vitriol. So, I’m done with anyone who just wants to rant. Have at it, but don’t try and call it informative or interest in the truth or even discussion. He’s flaming and it’s all Bush, all the time. A simple Clinton revisionist.

Now, the truth about Enron is that we don’t know much yet. The facts, like the truth about Clinton, will come out in time. If he (Bush) has broken the law, he should pay the price. That is no more than a deep hope on the part of some. So far.

Understanding Enron:

One of the biggest goals Enron had was the spoils of the Kyoto treaty. They built, it seems, many of these shell corporations around a strategy designed to have as many carbon, or pollution, credits as possible to trade for big $’s later IF the treaty passed.

(The treaty was, part of it, scheming to create pollution credits. You ostensibly were allowed so much pollution and then could buy credits to pollute more from a company, say Enron, that had credits associated with more efficient energy businesses)

It was a huge miscalculation. The thinking wasn’t necessarily wrong, it’s just they put a bunch of eggs in one basket that got spilled. Their campaign dollars to Clinton et al was aimed at passing Kyoto. Holy John McCain! It didn’t work!

Another major problem for Enron is simply energy prices this year. Remember last winter? Al Gore came to SOMD to make it all better.

Well, oil got cheap again. Distilling and getting it to the pump still costs X no matter the raw cost. Energy companies simply are not making the money they did last winter.

If Enron was making big moves, acquiring potential credits (they were) via buying up all sorts of consortiums and out right businesses thereby taking on huge debt at the wrong time (duh) and things go south at the wrong time, (Bush nixed Kyoto shortly after taking office) well, the consequences can be rather dramatic.

However, people forget: Enron is not gone. They may yet survive as a solid business.  

It seems rather obvious that some shady things were going on that need answering. Capitalism demands transparency in understanding what a company does, how it makes it’s money.

BUT: The uglier truth under all of this is that ALL companies bend the accounting rules as much as possible for ONE reason: To take advantage of the tax code, which is what all the campaign dollars actually buys, favorable changes or rulings in the tax code.

Simplify that and you remove the incentive to cheat, hence transparency.

Notice how many times you’ve heard Arthur Andersons name tied to problems with many companies recently? An awful lot has yet to surface. Know who they gave a bunch of money to? Senator “God, God’ Leiberman. Hmm…

Anyway, we will see.
 

Ken King

A little rusty but not crusty
PREMO Member
Foxy,

At your request, “I have yet to see anyone actually break down the points made by Blue one by one and prove Blue wrong.”  I’ll give it a go.  I realize that you won’t care what I have to offer but what the heck.  Here goes.

Blue post number one centered around whether or not Ken Lay slept in the Whitehouse during the Clinton years.  I could care less who slept where and there was nothing specifically concerning Enron in this post.  Therefore it is moot to the discussion.

Blue post number two, point number one, Blue states that, “Enron got to significantly shape the administration’s energy policy. Lay had six secret meetings with Cheney (more than anyone else), which resulted in 17 major concessions to Enron, putting the company in a position to gain more from the new policy than any other company in America.”  Reading his accompanying link number one to this point the author says, “The administration's energy program, developed by Vice President Dick Cheney in secret meetings -- six of them with Enron officials -- could have been written by lobbyists for the now failed company.”  Note that the author said “could” not did.  Big difference here.  In link number two of point one CBS speculates at a connection but in my opinion falls short of having conclusive evidence that Enron created the energy policy.

Blue post number two, point number two, the first link indicates that it was the House that wrote in the tax break that helped Enron.  Seems they were into a lot of peoples pockets that are supposed to do the bidding of the citizenry.  Anyway the Senate refused to sign the bill and no gain was realized by Enron, or any of the other big companies this measure would have benefited.

Blue post number two, point number three, he says, “Lay got to interview candidates and ultimately handpick the chairman of the Federal Energy Regulatory Commission, the watchdog agency overseeing and regulating his company’s industry.”  This is simply ludicrous as the Commission is composed of five members who are appointed by the President of the United States, with the advice and consent of the Senate. So the only way that Lay could have handpicked the candidate is by also getting every Senator that voted for the commission in his pocket.  I have yet to see any evidence of that.

Blue post two, point number four,  The associated link from the Washington Post said, “That change is symbolic of the heightened government priority on aiding commercial interests overseas. The effort, which expanded in the first Bush administration and in the Clinton administration, is evolving to a more explicit link to national security as the Bush administration elevates ties between the NSC and economic and commercial considerations.”  So it has become increasingly prevalent to do this you now see it as a problem.  Even though no specific wrong doing was cited.  The link from the consortiumnews.com while loaded with speculation again fails to provide specific evidence of wrong doing.

Blue post two, point number five, do you believe that GW is the first President to appoint people he has known and dealt with earlier in their careers.  Of course not and more importantly have any of these appointees been charged with anything that would disqualify them.  Not to date from what I have been able to find, so what is the problem here?

Blue post two, point number six, the link to St. Petersburg Times starts off saying, “For several years, allies of Enron Corp. helped orchestrate a campaign that eventually crippled an international crackdown on offshore tax havens.”  So since it has been going on for several years Bush now gets sole blame for what Enron has been doing.  What the Bush administration has said is that it would be wrong to interfere with the tax policies of sovereign nations.  Unless of course we are freezing assets of terrorists.  Explain what is wrong with that?

Blue post two, point seven, California’s energy issue was brought about by that states reluctance to adequately plan for their growth and development.  Once demand outweighed supply the dynamics of economy set in and prices went up.  As it was costing more to get energy to California prices escalated.  While I am sure some companies gouged Californians it seems they asked for this themselves by balking at every plan to increase their production ability.  Applying price caps would have made some energy producers reluctant to supply the needed energy and where would that have left California.

Blue post number three deals solely with Texas and their issues.  While interesting reading is it relevant to the collapse of Enron?  I would say no as this was when Enron was making money for people and under the control of the FERC of the Clinton administration.  If this information was so damning one would have expected it to be played to the hilt by the Democrats prior to the election.  I also would like to point out that I have not heard anyone blame Clinton for GW’s pretzel issue.

Blue post number four is a slam at VASlim, nothing substantial here.

Blue post number five is mostly just a list of several factual items of somewhat dubious relevance.  Point one says there are 35 people with direct ties to Enron that are in the current administration.  It says nothing of what the ties are or what impact these people have on the dealings of Enron.  As Enron is a Texas company, the President is from Texas, it seems many from his administration would be from Texas.  Well over a year ago everyone was being led to believe that Enron was a standup company, who was in charge then?  Point two might be factual but how does it tie into a scandal other then defining the scope of the Enron debacle that was allowed to take place over many years?  Point three was true at one time but at the time of the posting it was no longer accurate and even less relevant.  Point four is also factual but again who was in charge as Enron got into the position where it swindled its investors, employees, and stockholders?  Point five says the President had been investigated before but was he charged with anything?  If so would he have been the candidate for the Republican Party?  I doubt it.  Point six is I feel shear fantasy as the administration obtained advice from many in the industry and while they came to a policy that supports big business does anyone see this as abnormal for a Republican? Point seven also lack relevance as many businesses donated a lot of money to the candidate that they wanted to win.  For rebuttal I’ll ask if you have ever heard of the China/Clinton connection.  Or don’t we talk about that?  Finally, point eight which is totally idiotic as well as absurd.  It was California that screwed this up and I would be willing to view any evidence you have that backs up your claim.  Note a reporter’s speculation is not evidence.

Blue post number six, the pretzel, extremely relevant, don’t you think.

Blue post number seven, challenge to Otter and supporting of previous postings, nothing here.

Blue post number eight, you state that, “In neither of your posts, vrai and Larry, did you state a single rebuttal or counter-argument to the very serious charges I laid out showing how George W. Bush has sold the U.S. presidency to the energy industry. Why is that?”  I have seen nothing that would indicate that this President sold anything to anyone.  He has continued to support big business like he always has.  Never once have we seen were he sold anything to anyone, again care to talk about Clinton and China?

Blue post number nine, now totally off Enron and running for cover.  Face it, the best man that ran for office is in office and will be there for another seven years, unless an unknown surfaces that enthralls the electorate.   BTW I am a registered Democrat, but like Christy a Libertarian at heart.  My political affiliation  is due to the Maryland election laws and my desire to participate in the primary.



(Edited by Ken King at 8:18 pm on Mar. 6, 2002)
 
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ShellyCW

Guest
I don't really care what anyone's political affiliation is.  I'm not wrong in making the generalization that the majority of posters on somd.com have homogenous political opinions.  What's the problem?

Anyway, you guys owe me $4.95/min. for the time it took to type these posts out.
 
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ShellyCW

Guest
Otter-- checks are fine, just make them out to cash.    ;)

(Edited by ShellyCW at 12:21 pm on Mar. 7, 2002)
 

Ken King

A little rusty but not crusty
PREMO Member
ShellyCW says, “I wonder why Miss Cleo didn't see Enron coming...”  I’ll take that to mean why didn’t anyone see this coming.  It was one hell of a scam, planned well and executed better.  ENRON and Arthur Anderson worked together to first inflate ENRON into a mega-giant company.  Anderson, as the accounting firm, and doing business consulting for ENRON on the side, sanctioned the off book debt schemes that ENRON was using to push their value higher.  With this type of cooperation from those that are suppose to factually state the fiscal shape of the company anyone could be swindled.  Everyone was saying that the company was doing great, obviously we know differently.  That, I believe, is why Miss Cleo didn’t see it coming, nor did any of those that owned stock or worked for ENRON.  
 
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ShellyCW

Guest
Actually I meant Miss Cleo's psychic abilities are as fake as her Jamacian accent.  Joking aside, there's no way that the victims of the ENRON tank could've have known any better.  I heard of one 30 year ENRON employee who was looking forward to a retirement nest egg of $600,000 only to have it dwindle to 15,000 overnight.  In related news, Ken Lay will have to sell one of his chalets in Aspen.   :twitch:
 

Larry Gude

Strung Out
More gristle to digest:

For the most part what Enron did was not illegal (so far).

Here's the deal...

These "off-book" partnerships are LEGAL. The SEC says that if an entity not business related owns 3% or more of a partnership then the parent company (Enron) can keep it off their main books. It gets mentioned in footnotes and then you better know your stuff or you won't figure out what it means. So, Enron may have owned 97% of a (many) risky, debt-laden entity but were able to shield it from view via these rules.

The bad part may be that Enron went through machinations (with the guidance of Anderson) to help the 3% companies via loan guarantees and other business support, IE, violating the relationship aspect of the SEC rules either in spirit or in fact.

As far as the investors, here’s what I’ve heard:

Many of these folks went to work for Enron with inducements, such as stock BUT in many cases these people were not invested yet, meaning that there was a time period before these shares belonged to them that may not have been reached. In other words, they still got a paycheck; it’s just that the risk part, the stock, didn’t work out.

Also, companies are allowed to change entities, hierarchy et al. In some cases, the rules say that in the event of a corporate structure change, shareholders/employees must wait specified periods of time before they can do as they please with shares. The idea being that there would be a period of enforced stability for a new structure/entity to settle down averting unnecessary panic selling by the masses.

THE BAD PART may be that Enron intentionally made some moves specifically to freeze shares because there was trouble on the horizon. This would violate the intent of these rules.

Now, in many cases people lost in a risky thing, stocks, made worse by the stupidity of having all their eggs in one basket, though, like I said, in some cases the shares weren’t theirs yet or they had been otherwise manipulated.

Anderson’s role was to guide Enron through all these machinations to try and make things, shall we say, somewhat less transparent?

You do notice how the furor is dying down now that the powers that be are finding this story to be a bit more mundane than they thought, yes?

I can't wait until the 3% rule and it's story comes to light.

Any guesses as to when it came into being?

Let's just say we won't hear much hubbub if it was, oh, say, somewhere between 1992 and Marc Rich.
 
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