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NOTES FROM UNDERGROUND

  And, indeed, I will ask on my own account here, an idle question: which is better—cheap happiness or exalted sufferings? Well, which is better?---Fyodor Dostoevsky ---Notes from Underground There are certain people of whom it is difficult to say anything which will at once throw them into relief—in other words, describe them graphically in their typical characteristics. These are they who are generally known as “commonplace people,” and this class comprises, of course, the immense majority of mankind. Authors, as a rule, attempt to select and portray types rarely met with in their entirety, but these types are nevertheless more real than real life itself. For instance, when the whole essence of an ordinary person’s nature lies in his perpetual and unchangeable commonplaceness; and when in spite of all his endeavours to do something out of the common, this person ends, eventually, by remaining in his unbroken line of routine—. I think such an individual really does become a type o...
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Hope

To be human is to be a miracle of evolution conscious of its own miraculousness — a consciousness beautiful and bittersweet, for we have paid for it with a parallel awareness not only of our fundamental improbability but of our staggering fragility, of how physiologically precarious our survival is and how psychologically vulnerable our sanity. To make that awareness bearable, we have evolved a singular faculty that might just be the crowning miracle of our consciousness: hope.-- Erich Fromm



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Enron: The Smartest Guys in the Room (2005)

 

"This is not a political documentary. It is a crime story. No matter what your politics, "Enron: The Smartest Guys in the Room" will make you mad. It tells the story of how Enron rose to become the seventh largest corporation in America with what was essentially a Ponzi scheme, and in its last days looted the retirement funds of its employees to buy a little more time."

There is a general impression that Enron was a good corporation that went bad. The movie argues that it was a con game almost from the start. It was "the best energy company in the world," according to its top executives Kenneth Lay and Jeffrey Skilling. At the time they made that claim, they must have known that the company was bankrupt, had been worthless for years, had inflated its profits and concealed its losses through bookkeeping practices so corrupt that the venerable Arthur Anderson accounting firm was destroyed in the aftermath.


The film shows how it happened. To keep its stock price climbing, Enron created good quarterly returns out of thin air. One accounting tactic was called "mark to market," which meant if Enron began a venture that might make $50 million 10 years from now, it could claim the $50 million as current income. In an astonishing in-house video made for employees, Skilling stars in a skit that satirizes "HFV" accounting, which he explains stands for "Hypothetical Future Value." Little did employees suspect that was more or less what the company was counting on.

Skilling and Lay were less than circumspect at times. When a New York market analyst questions Enron's profit and loss statements during a conference call, Skilling can't answer and calls him an "a-hole;" that causes bad buzz on the street. During a Q&A session with employees, Lay actually reads this question from the floor: "Are you on crack? If you are that might explain a lot of things. If you aren't, maybe you should be."




What did Enron buy and sell, actually? Electricity? Natural gas? It was hard to say. The corporation basically created a market in energy, gambled in it and manipulated it. It moved on into other futures markets, even seriously considering "trading weather." At one point, we learn, its gambling traders lost the entire company in bad trades, and covered their losses by hiding the news and producing phony profit reports that drove the share price even higher. In hindsight, Enron was a corporation devoted to maintaining a high share price at any cost. That was its real product.

The most shocking material in the film involves the fact that Enron cynically and knowingly created the phony California energy crisis. There was never a shortage of power in California. Using tape recordings of Enron traders on the phone with California power plants, the film chillingly overhears them asking plant managers to "get a little creative" in shutting down plants for "repairs." Between 30 percent and 50 percent of California's energy industry was shut down by Enron a great deal of the time, and up to 76 percent at one point, as the company drove the price of electricity higher by nine times.


    1. Enron: The Smartest Guys in the Room scored 7.6 out of 10 on IMDb.
      Enron: The Smartest Guys in the Room scored 97 percent on Rotten Tomatoes.

    1. Release date: April 22, 2005 (USA)
      Director: Alex Gibney
      Starring: Andrew Fastow; Jeffrey Skilling; Kenneth Lay; Gray Davis
      Music by: Matthew Hauser
      Adapted from: The Smartest Guys in the Room


      3. Watch movie


Enron Scandal: The Fall of a Wall Street Darling - Investopedia



      4. Resources:
        - A Look Back at the Enron Case
        - Enron trial exhibits and documents

        Cases:
        - Former Enron CEO Jeffrey Skilling Resentenced
        - Federal Jury Convicts Former Enron Chief Executives Ken Lay, Jeff Skilling
        - Former Enron Chief Financial Officer Andrew Fastow Pleads Guilty  
        - Former Enron Broadband Co-Chief Executive Officer Sentenced for Wire Fraud
        - Former Enron Assistant Treasurer Pleads Guilty
        - Former Enron Executive Pleads Guilty to Insider Trading

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