Sunday, November 25, 2007

Enron: A house of cards over a swimming pool of fire

There was a reason I wasn't a business major- economics bore the hypothetical socks (I don't like wearing socks) off me. Seriously, I don't understand it and I really don't want to, and I'm okay with that.
But Enron... they make me curious. It takes smart people to fool the world. And the sad thing is- Enron really was an innovator in the market. No one had ever thought to sell energy, but they did- marking the beginning of the end.
What I perceive their first major flaw was, was the type of accounting they managed. Again, my economics knowledge is slim, but the accounting was completely unethical. Forming a business on an unethical accounting practice is a recipe for disaster.
Transparency really is important- thank you Enron for pointing that out.

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