Sunday, November 4, 2007

Enron?

I don't fully understand Enron or what it's business was. Economics has always been too philosophical and intangible for me, which, it seems, was the business of Enron. In the movie, it said that Enron traded energy. I do not see how a business can make money off of this, and in reality, it didn't. Enron created it's own made-up market. No one who actually looked at the workings of Enron would think that it was right. This was one of the major problems in this case. All businesses must be reviewed, but the people who did so turned their heads because they were benefiting from the "projected profit." By looking the other way, the government really screwed up and is partly at fault for letting Enron get away with their actions. From a PR stand point, businesses should make sure that they are receiving and "donating" money to the right people, not the banks who provide your audit or the politician who oversees energy companies.

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