Ellis L. Marples

Traditional 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.

• Sell one cow to buy a new politician, leaving you with nine cows. No balance sheet provided with the release.

• The public buys your bull.

AN AMERICAN CORPORATION

• You have two cows.
•  You sell one, and force the other to produce the milk of four cows.
•  You are surprised when the cow drops dead.