[baltoga]

In layman's terms if you pay your bill using a credit card you still have the debt. If you pay the credit card using another credit card you still have the debt.

In Enron's case the credit card was the Special Purpose Entity or SPE. What's Right and What's Wrong With (SPEs), SPVs, and VIEs

[baltoga]

Link

http://www.trinity.edu/rjensen//theory/00overview/speOverview.htm

[Hop A Long Cassidy]

>>>In layman's terms if you pay your bill using a credit card you still have the debt. If you pay the credit card using another credit card you still have the debt.
>>>In Enron's case the credit card was the Special Purpose Entity or SPE.

In Enron's case they borrowed the money on the second credit card and then booked it as revenue.

This article proves what it set out to disprove: they defrauded the stockholders. By their willful avoidance of reality (and related accounting entries to allow such) they fooled themselves and their outside investors. Actually there was one that wasn't fooled, but Skilling called him an a**h*** during an investor conference call.