first thing, enron failed because it was in the trading business, this company had lost its credibility over the years, no one wanted to trade with it anymore, that's why it failed
the idea is that, I will sell you my house which is worth 100 dollars for 100 dollars, and I agree to buy it back for a 100 dollars tomorrow, is there a transaction to be recorded? No, therefore it is not going on to the statements
another question, I will sell you my partnership which is worth 100 dollars for a 100 dollars, and I am granting you the option to buy it back if the house price goes down to 1 dollar, is there a transaction to be recorded? again,the answer is no,
that was the accounting involved, and it is not illegal, people got greedy, should've sold the stocks when it hit 80 bux
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