Thursday, November 29
November 29, 2001
An Implosion on Wall Street
The company's autopsy will be a complicated affair, entailing numerous lawsuits. What is already clear, and will come as a shock to millions of trusting individual investors across America, is that the financials of a Fortune 500 company were essentially a mystery. Enron's death watch began last month when it grudgingly disclosed that $1.2 billion of its market value had vanished as a result of "related-party" transactions with private partnerships that enriched company insiders. Then Enron admitted that it had overstated its profits over the last five years by $600 million. Dynegy cited Enron's lack of forthrightness as a reason to walk away from the merger agreement.
Not very long ago, competitors and Democrats in Washington were worrying whether the close ties between Enron's chairman, Kenneth Lay, and George W. Bush would give the company too much influence. Enron has aggressively lobbied, with some success in recent years, to limit regulation and disclosure of its trading operations.
Creative accounting and lack of proper controls allowed millions of American's to be duped into furthering the wealth of the few at the expense of the many. Look for a similar outcome within government accounting practices as baby Bush and company stifle information that would make them look bad. They'll probably be using the excuse of protecting our children from terrorists. They've already figured out how to save our children from prosperity. Will they figure out a way to blame Clinton? Count on it. Bush is as bankrupt intellectually as the Enron Corp appears to be financially.