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It's sad, but I think "tricked" is a simplification. Being tricked into thinking it was safer than it was, yes, but being tricked in order to boost the share pr
by danpalmer 5y ago
It's sad, but I think "tricked" is a simplification. Being tricked into thinking it was safer than it was, yes, but being tricked in order to boost the share price or maintain the company, I'm not so sure.
Even towards the end the CEO was taking out personal loans secured on his Enron shares... in order to buy more Enron shares. This was a big contributor to the snowball effect when the share price started falling. I think the top people at Enron honestly believed in the stock and were probably mostly pushing it for employees on this basis. That was pure hubris, thinking they were smarter than everyone else. They should have known better and some were rightfully prosecuted for their part, but it's a bit more complicated than saying the employees were "tricked".
- mlac 5y agoThe WSJ did a fantastic podcast on this recently called Bad Bets. If there is any interest it is worth a listen.