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eric pebble

Enron: The Smartest Guys In The Room.

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I have been reading various articles about the Enron scandal and the forthcoming film - http://www.theage.com.au/news/film-reviews...8796590007.html - and see - http://ceda.com.au/public/package/enron.html

It will prove to be a very interesting film - and, imo, there are distinct parallels with the House Price Pyramid Selling Scam: The TOTAL denial by the VI's that there is anything wrong - when in fact - e.g. Mortgage Fraud is rife, (for example - see - http://www.housepricecrash.co.uk/forum/ind...showtopic=19113 ) - something that STILL hasn't been aired and dealt with properly.... -

"the major players of Enron, such as founder Ken Lay and CEO Jeffrey Skilling, selling their wares, addressing their troops, boosting the vision of Enron as the quintessentially smart, imaginative, successful company, and frantically improvising to keep the charade going. And then, before a Senate committee, Skilling simply stonewalls, blithely refusing to concede either that anything they did was in any way wrong.."

Well -- the VI's just keep on peddling the message that HP's "just go up" - whether in property supplements, newspapers, tv, etc. - And they totally ignore and stonewall ANY hint of the downside.... Just like those guys at Enron...... And - it is so clear to anyone with sense - the 300% rise in property "prices" in a few years is a recipe for a total disaster - and the real loosers will be those who have been fleeced by the Mortgage Co's/Banks etc. who just can't loose - or so they think.....

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Yep the directors at Enron told the Enron workforce that the initial dips in share price was a golden opportunity to provide for their pensions, buy buy buy with every cent you can lay your hands on. Of course all the time they were saying that they were selling their share allocations into the market.

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Yep the directors at Enron told the Enron workforce that the initial dips in share price was a golden opportunity to provide for their pensions, buy buy buy with every cent you can lay your hands on. Of course all the time they were saying that they were selling their share allocations into the market.

i.e. Take the money and run..... Any echoes with the "Housing Market"? .......

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"Smartest guys in the room"

Haha.

Plenty of smart people would disagree with taht.

If they were really clever, they would have found an honest way to deal,

and would stoll be in business

I've got some nice Enron mugs in my kitchen cupboard. They still work ok.

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Off topic, but the film is a definite see - watched it on a business trip to the US in December - some pretty shocking stuff, some stuff everyone knows, but very very interesting and well made.

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"Smartest guys in the room"

Haha.

Plenty of smart people would disagree with that.

If they were really clever, they would have found an honest way to deal,

and would still be in business

And isn't the essence of Ken Lay's defence that he was so dumb that he simply didn't notice what was happening under his nose?

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Re: Enron: The Smartest Guys In The Room

Just watched this movie.

Very good, and makes one very suspicious of the types of activities going on in the City when it comes to energy and commodities trading.

I had no idea it was Enron's manipulation of the electricity supply that was deliberately causing those California blackouts - selling electricity at 20 times the usual rate and making them billions in order to fund their inflated earnings through 'mark to market accounting' (basically, FRAUD).

The smoke and mirrors, the hubris, the corruption and lies of the people at the top....

A $60 billion company which didn't actually MAKE OR DO ANYTHING except borrow money off balance sheet and gamble it through manipulation of markets - JUST LIKE THE UK ECONOMY :D

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Sure would be nice to see some accounts some time.

http://money.cnn.com/2006/03/13/news/compa....reut/index.htm

Fannie finds new accounting errors

Doesn't say how the discovery will impact its earnings restatement; expects 2005 results to be delayed.

March 13, 2006: 8:43 AM EST

WASHINGTON (Reuters) - Fannie Mae, whose accounting problems will likely lead to an $11 billion profit restatement, said Monday it has found more errors related to investment securities, loans and mortgage-backed securities trusts.

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Forthcoming? I've seen it, it's an excellent film, there are many parallels to what we're now seeing with the housing market, especially the bits covering the Californian energy crisis.

Oh, and Bethany McLean is a babe.

Very good, and makes one very suspicious of the types of activities going on in the City when it comes to energy and commodities trading.

I had no idea it was Enron's manipulation of the electricity supply that was deliberately causing those California blackouts - selling electricity at 20 times the usual rate and making them billions in order to fund their inflated earnings through 'mark to market accounting' (basically, FRAUD).

Actually the Californians should have seen it coming, the UK was the first such deregulated market in the world and during the initial few months' of trading back in the early 90's there was lots of funny business going on. Generators would take capacity off-line and only bring it back on the market at the last minute ensuring they recieved a good price, basic Enron tactics but on a more minor scale, anyway the regulators soon caught on and walloped such behavior and companies dropped into more longterm contracts thus lessening the vagaries of the spot market.

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Sure would be nice to see some accounts some time.

http://money.cnn.com/2006/03/13/news/compa....reut/index.htm

Fannie finds new accounting errors

Doesn't say how the discovery will impact its earnings restatement; expects 2005 results to be delayed.

March 13, 2006: 8:43 AM EST

WASHINGTON (Reuters) - Fannie Mae, whose accounting problems will likely lead to an $11 billion profit restatement, said Monday it has found more errors related to investment securities, loans and mortgage-backed securities trusts.

yep

why isn't this story getting more coverage

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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