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Eight important points to enron case
- Houston Natural Gas merges with InterNorth to become Enron. This takes place in 1985.
- The Valhalla Scandals nearly did Enron in early in the career of both Lay and the corporation. Enron. Maverick traders risked everything on a series of shaky deals. Muckleroy, former Enron official, out-bluffed the market to ride out the financial crises.
- Lay formulated an exciting new idea: trading energy futures, that is, deregulating the energy market and trading energy futures in the same way that agriculture futures are traded. To bring about deregulation in the energy market, Kenneth Lay became a formidable Washington lobbyist who benefitted from close ties to the Bush family (President George H. W. Bush and President George W. Bush). (Take some time to think about some of the free-market arguments that Lay made to convince government agencies to de-regulate the energy market.)
- Lay hires Skilling who at the time was an adviser for the McKinsey group. Skilling was brilliant (called "incandescently brilliant by admirers), a Social Darwinist (distinguish Darwinist from Social Darwinist), and a risk taker. While these were admiral qualities in some contexts they ultimately failed Skilling in his work with Enron? (Why? What does Bethany McLean mean by characterizing Enron and Skilling’s role in the events that unfolded, as a tragedy? How does this compare with Greek tragedies like Oedipus and Antigone?)
- Enron develops "creative" accounting methods. Mark-to-market allows them to declare future earnings expected from a project at the moment the deal is made. While good in the short term, this method quickly put Enron on an accelerating treadmill: to maintain the illusion of profitability they had to keep making deals and declaring up front expected profits. Enron also used Special Purpose Entities to distribute risk and secure needed loans at low interest rates. SPEs were artificial corporations endowed with Enron assets like gas pipelines and energy contracts. These assets made it possible for Enron to get low interest loans and generate need cash flow. The problem was that Enron used its stock to guarantee the loans given to the SPEs. Thus, Enron had to continually make deals to appear profitable to keep its stock value rising, and we’re back to the accelerating treadmill.
- Enron took on the identity of an "idea" company. They saw themselves as a laboratory where ideas were generated by creative and brilliant people and then realized in the real world through deals made by deal-makers like Cliff Baxter and Rebecca Mark (who made the Dahbol power plant deal). Examples of ideas include Enron Broadband, the Dahbol, India Power Plant, and energy futures.
- It is now common knowledge that the California energy crises (which led to the recall of governor Gray Davis and the election of Arnold Schwarzenegger) was created by Enron traders. (The book and documentary, "The Smartest Guys in the Room," provides a convincing case for this including scary conversations between Enron traders that were tape recorded and later replayed before Congressional Committees.) Matters were worsened when Jeffry Skilling compared California to the sinking ship, Titanic; they were the same (both disasters), except for the fact that the Titanic's lights were still on when it went down. (His punishment: a pie in the face thrown by an angry California energy consumer.)
- While Enron's rise took place gradually over fifteen years, its fall was spectacular and rapid. This lends credence to the claim that Enron was a house of cards, more appearance than solid reality.
Questions & Answers
what is defense mechanism
what is defense mechanisms
Chinaza
I'm interested in biological psychology and cognitive psychology
what does preconceived mean
How can I develope my cognitive domain
why is communication effective
Communication is effective because it allows individuals to share ideas, thoughts, and information with others.
effective communication can lead to improved outcomes in various settings, including personal relationships, business environments, and educational settings. By communicating effectively, individuals can negotiate effectively, solve problems collaboratively, and work towards common goals.
it starts up serve and return practice/assessments.it helps find voice talking therapy also assessments through relaxed conversation.
miss
Every time someone flushes a toilet in the apartment building, the person begins to jumb back automatically after hearing the flush, before the water temperature changes. Identify the types of learning, if it is classical conditioning identify the NS, UCS, CS and CR. If it is operant conditioning, identify the type of consequence positive reinforcement, negative reinforcement or punishment
please i need answer
Wekolamo
because it helps many people around the world to understand how to interact with other people and understand them well, for example at work (job).
Agreed 👍 There are many parts of our brains and behaviors, we really need to get to know. Blessings for everyone and happy Sunday!
ARC
A child is a member of community not society elucidate ?
Isn't practices worldwide, be it psychology, be it science. isn't much just a false belief of control over something the mind cannot truly comprehend?
compare and contrast skinner's perspective on personality development on freud
Skinner skipped the whole unconscious phenomenon and rather emphasized on classical conditioning
war
explain how nature and nurture affect the development and later the productivity of an individual.
nature is an hereditary factor while nurture is an environmental factor which constitute an individual personality. so if an individual's parent has a deviant behavior and was also brought up in an deviant environment, observation of the behavior and the inborn trait we make the individual deviant.
Samuel
I am taking this course because I am hoping that I could somehow learn more about my chosen field of interest and due to the fact that being a PsyD really ignites my passion as an individual the more I hope to learn about developing and literally explore the complexity of my critical thinking skills
and having a good philosophy of the world is like a sandwich and a peanut butter 👍
Jonathan
generally amnesi how long yrs memory loss
interpersonal relationships
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Source:
OpenStax, Business, government, and society. OpenStax CNX. Mar 04, 2014 Download for free at http://legacy.cnx.org/content/col10560/1.6
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