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Enron's Accounting System Explained

        Feudalism - You have two cows. Your lord takes some

         of the milk.

         Fascism - You have two cows. The government takes

         both, hires you to take care of them, and sells you

         the milk.

         Communism - You have two cows. Your neighbors help

         take care of them and you share the milk.

         Totalitarianism - You have two cows. The government

         takes them both and denies they ever existed and

         drafts you into the army.  Milk is banned.

         Capitalism - You have two cows. You sell one and

         buy a bull. Your herd multiplies, and the economy

         grows. You sell them and retire on the income.

         Enron Venture Capitalism - You have two cows. You

         sell three of them to your publicly listed company,

         using letters of credit opened by your brother-in-law at

         the bank, then execute a debt/equity swap with an

         associated general offer so that you get all four cows

         back, with a tax exemption for five cows. The milk

         rights of the six cows are transferred via an intermediary

         to a Cayman Island company secretly owned by the

         majority shareholder who sells the rights to all seven

         cows back to your listed company. The annual report

         says the company owns eight cows, with an option on

         one more.