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Simply, Enron was loaned money, but it wasn't called a loan, it was "prepay" for energy to be delivered in the future.

The reason this is a scam on Enrons end is that the interest payments aren't shown as an expense.

Imagine if you were a carpenter, and I gave you $10,000 for work you were going to do on my house in the future. But, both you and I know that you're not going to do any work, but instead pay it back. On your balance sheet it is shown as revenue and not an expense.

I think I got it correct ;)

Yes, and the biggest scam the Executives at Enron pulled, was to cash out on their Stock Options, knowing full well that the money was a LOAN and could not be repaid.

They are Thieves and should be put in jail. We need to put politics aside and go after the ones who looted their company.

Now, we have Citigroup. Who loaned the money to Enron. And if my family wasn't heavily invested in Citigroup, I probably wouldn't be so passionate about it...but it hurts when it's this close to home.

Trading on C. should be suspended untill this is worked out. For everyone's sake.

Imagine if you were a carpenter, and I gave you $10,000 for work you were going to do on my house in the future. But, both you and I know that you're not going to do any work, but instead pay it back. On your balance sheet it is shown as revenue and not an expense.

Excellent analogy but imagine this...a three headed snake who's intent is to accomplish some ill gotten gain.

First you need a corporation with top level executives that are basically corruptable, i.e. Enron. Second you need an overseer that will turn it's head and actually be an accomplice in the enterprise, i.e. A A. And last but not least, you need a financial institution that also is willing and capable of "inventing" shady ways to pull off the scam.

I'll let you guess who is the third head of the snake.

This third head of the snake is HUUUUUUGE...this could bring the whole house of cards down.