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Enron comparisons folks are making is about why they failed, not why they made a lot of money. They ultimately failed for reasons scarily similar to what’s goin
by cmiles8 21d ago
Enron comparisons folks are making is about why they failed, not why they made a lot of money. They ultimately failed for reasons scarily similar to what’s going on now across the industry with special purpose vehicles and off balance sheet liabilities.
- infecto 21d agoJust wrong. It’s a superficial comparison at best. Enron was cooking books using entities they controlled but making it look like they did not. You could make an argument that maybe this is similar to oracle (I think?) in the com bubble financing networking gear to customers. I still think that misses the mark since the customers using hardware are have demand for computer by their customers.
- mrlonglong 21d agoBoots. You could cook boots but they still won't be edible.
- cmiles8 21d agoAnd people were really buying electricity too. The WSJ recently reported that there’s around 3 trillion in off balance sheet liabilities floating around in AI. It’s very unclear where the $3 trillion to pay those bills will come from. Nobody is saying it’s “illegal” but it was news in the WSJ as the companies using creative accounting aren’t exactly going out of their way to make sure everyone knows that this $3 trillion in liabilities exists.
- infecto 20d agoWhat is your point about electricity? Enron was cooking their books by controlling other companies they said they had no control of to improve their own financial health. I think there questions for the commitments your talking about but they are not due today and I suspect when spread out over the life of the commitment are dwarfed by cash flow.