Message-ID: <32826662.1075860966844.JavaMail.evans@thyme> Date: Thu, 21 Feb 2002 07:59:13 -0800 (PST) From: michelle.lokay@enron.com To: jimboman@bigfoot.com Subject: Enron government Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: quoted-printable X-From: Lokay, Michelle X-To: 'jimboman@bigfoot.com' X-cc: X-bcc: X-Folder: \Michelle_Lokay_Mar2002\Lokay, Michelle\Sent Items X-Origin: Lokay-M X-FileName: mlokay (Non-Privileged).pst Feudalism You have two cows. Your lord takes some of the milk.=20 Fascism You have two cows. The government takes both, hires you to take care of them and sells you the= milk. Communism You have two cows. You must take care of them, but the government takes all the milk.=20 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.=20 Enron You have two cows. You borrow 80% of the forward value of the two cows fro= m your bank, then buy another cow with 5% down and the rest financed by the= seller on a note callable if your market cap goes below $20B at a rate 2 t= imes prime. You now sell three cows to your publicly listed company, using = letters of credit opened by your brother-in-law at a 2nd bank, then execute= a debt/equity swap with an associated general offer so that you get four c= ows back, with a tax exemption for five cows. The milk rights of six cows a= re transferred via an intermediary to a Cayman Island company secretly owne= d by the majority shareholder who sells the rights to seven cows back to yo= ur listed company. The annual report says the company owns eight cows, with= an option on one more and this transaction process is upheld by your indep= endent auditor and no Balance Sheet provided with the press release that an= nounces that Enron as a major owner of cows will begin trading cows via the= Internet site COW (cows on web). I am sure you now fully understand what h= appened.