FW: Enron

-----Original Message-----
From: HARTMAN, JASON (TC) [mailto:JHARTMAN@aeriform.com]
Sent: Tuesday, January 22, 2002 5:09 PM
To: CIESLAR, MARK (MO); MCKEE, MIKE (TC); LUKE, PATRICK (MO); MORGAN,
CODY (PR); Ray Styron (E-mail); Ron Capehart (E-mail); Christine Mason
(E-mail); Marcos Meade (E-mail)
Subject: FW: Enron

-----Original Message-----
From: Stacy_Hansen@valic.com [mailto:Stacy_Hansen@valic.com]
Sent: January 22, 2002 3:56 PM
To: stephani@grantharrison.com; glummus@hotmail.com; dori6453@aol.com;
aedwards@hou.wylelabs.com; delesandri@aol.com; jhartman@aeriform.com
Subject: Enron

Just in case your not tired of hearing about Enron yet!!
---------------------- Forwarded by Stacy Hansen/VALIC on 01/22/2002 03:53
PM ---------------------------

Kristi Rogers
01/22/2002 08:32 AM

To: jason.rogers@mustangeng.com, BATEMANGRUBBS@aol.com @ AMGEN,
D41Diamond@aol.com @ AMGEN, eric.lindberg@ni.com, "TINA MELTON"
<tinamelton@hotmail.com< @ AMGEN, MistyS724@aol.com @ AMGEN,
bbaker225@yahoo.com, drogers89@hotmail.com, Virginia
Breaux/AGC@AGC@AMGEN, Tiffany Ringer/HOME_OFF/AGLIFE@AGFG, Stacy
Hansen/VALIC@AGFG, Dean Zebak/VALIC
cc:

Subject: Enron

I bit off topic of list, but .......

In case you were wondering how Enron came into so much trouble, here is an
explanation reputedly given by an Ag Eco professor at Texas A&M, to explain
it in terms his students could understand.

CAPITALISM:
You have two cows.
You sell one and buy a bull.
Your herd multiplies and you hire cowhands to help out on the ranch. You
sell cattle.
The economy grows and eventually you can pass the business on and your
cowhands can retire on the profits.

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.
Now do you see why a company with $62 billion in assets is declaring
bankruptcy?