Message-ID: <18044894.1075841974350.JavaMail.evans@thyme> Date: Wed, 23 Jan 2002 21:39:48 -0800 (PST) From: cweldon@houston.rr.com To: charles.weldon@enron.com Subject: Fw: FW:leverage Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: "Charlie Weldon" @ENRON X-To: Weldon, V. Charles X-cc: X-bcc: X-Folder: \ExMerge - Weldon, V. Charles\Deleted Items X-Origin: WELDON-V X-FileName: v charles weldon 7-2-02.PST ----- Original Message ----- From: To: ; ; ; ; Sent: Wednesday, January 23, 2002 5:05 PM Subject: FW:leverage > Feudalism > You have two cows. > Your Lord takes some of the milk. > > Fascism > You have two cows. > The Government takes both, then 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. > > 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 the income. > > Enron > You have two cows. > You borrow 80% of the forward value from 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 times 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 cows back, > with a tax exemption for five cows. The milk rights of six cows are > transferred via an intermediary to a Cayman Island company secretly > owned by the majority shareholder who sells the rights to seven cows > back to your listed company. The annual report says that the company > owns eight cows, with an option on one more and this transaction process > is upheld by your independent auditor with no negative balance sheet > implications, followed by a press release that announces that Enron as a > major owner of cows may begin trading cows via a new internet site "COW" > (cows on web). >