As Molly Ivins so accurately notes, the Enron debacle is a national scandal. It’s not just a story of arrogance, however.
Enron’s collapse reflects a system that protects the kind of opaque business dealings that reward insiders while leaving the average investors in the dark. Maybe they won’t get away with it (BBC) this time.
The lack of trust in our system is growing, and it’s no wonder. More in my Sunday column.
See also:
New York Times: The Dangers Behind a Leap of Faith. Trust-me companies are companies whose financial results gallop ahead of their businesses, companies with seemingly perfect control over their quarterly sales and profits. Companies whose financial statements are loaded with footnotes, companies that short- sellers often attack but rarely dent. Companies with executives who sell their stock every quarter even as they encourage investors to buy more.
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