artlung: a personal website ... december 2001
JOE CRAWFORD'S HOME OF ENIGMATIC NARCISSISM AND MISCELLANY

Funny… 2001 Dec 10

Funny, via Dave Farber‘s Interesting-People list:
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.

Enron Venture Capitalism
– You have two cows.
– You sell three of them to your publicly listed company, using letters of credit opened by your brother-in-law at the bank, then execute a debt/equity swap with an associated general offer so that you get all four cows back, with a tax exemption for five cows. The milk rights of the six cows are transferred via an intermediary to a Cayman Island company secretly owned by the majority shareholder who sells the rights to all seven cows back to your listed company. The Annual report says the company owns eight cows, with an option on one more.
– No Balance Sheet provided with the release.

Joe Crawford blogged this at 4:08pm in 2001 in December. The 10th was a Monday. You are reading this 17 years later. Make a public comment. There are no comments Tweet. Direct message. Send email. It has hashtags→ .

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