FW: Economics Redefined by Enron

-----Original Message-----
From: Gregory, Paul
Sent: Friday, November 09, 2001 12:34 PM
To: Breese, Mark
Subject: FW: Economics Redefined by Enron

-----Original Message-----
From: Gregory, Andrei [mailto:AGregory@reliant.com]
Sent: Friday, November 09, 2001 12:29 PM
To: Gregory, Paul
Subject: FW: Economics Redefined by Enron

< -----Original Message-----
< From: Horning, Gilbert
< Sent: Friday, November 09, 2001 10:23 AM
< To: Gregory, Andrei; Davenport, David; Richardson, Keven; Cox,
< Thomas; Freeman, Tina; Martinez, Michelle; Peduto, Chris; Speakman IV,
< William; Vo, Catherine; Wright, Allison
< Subject: Economics Redefined by Enron
<
< Social Studies: Some Useful Definitions
< < <
< < < 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.
< < <
< < < Applied Communism
< < < You have two cows.
< < < You must take care of them, but the government takes all the milk.
< < <
< < < Totalitarianism
< < < You have two cows.
< < < The government takes them both and denies they ever existed.
< < < Milk is banned.
< < <
< < < Pure Democracy
< < < You have two cows.
< < < You and your neighbors decide who gets the milk.
< < <
< < < Representative Democracy
< < < You have two cows.
< < < Your neighbors pick someone to tell you who gets the milk.
< < <
< < < Mexican Democracy
< < < You have two cows.
< < < The government takes both and drafts you into the army.
< < <
< < < Great Britain
< < < You have two cows.
< < < The government shoots one cow because it has Mad Cow.
< < < The government comes back and shoots the other one because it has
< < < foot and mouth.
< < <
< < < European Democracy
< < < You have two cows
< < < The EU commission decides which regulations for feeding and
< < < milking apply.
< < < If there aren't any, they invent some.
< < < They pay you not to milk the cows.
< < < They take both cows, shoot one, milk the other and pour the milk
< < < down the drain.
< < < They then require you to fill out forms accounting for the missing
< < < cows.
< < <
< < < American Democracy
< < < The government promises to give you two cows, if you vote for it.
< < < After the election, the president is impeached for speculating in
< < < cow futures.
< < < The press dubs the affair "cowgate," but supports the president.
< < < The cows sue you for breach of contract.
< < < Your legal bills exceed your annual income.
< < < You settle out of court and declare bankruptcy.
< < <
< < < 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. -
< < < No Balance Sheet provided with the release.
< < <
<