Intermarkets' Privacy Policy Support
Donate to Ace of Spades HQ! Contact
Ace:aceofspadeshq at gee mail.com Buck: buck.throckmorton at protonmail.com CBD: cbd at cutjibnewsletter.com joe mannix: mannix2024 at proton.me MisHum: petmorons at gee mail.com J.J. Sefton: sefton at cutjibnewsletter.com Recent Entries
Food Thread: Puttering And Popcorn!
First World Problems... Russia Will Win In Ukraine, And It Doesn't Matter At All Sunday Morning Book Thread - 7-6-2025 ["Perfessor" Squirrel] Daily Tech News 6 July 2025 Saturday Night "Club ONT" July 5, 2025 [The 3 Ds] When in Rome (or Hollywood)... [Lex] Hobby Thread - July 5, 2025 [TRex] Ace of Spades Pet Thread, July 5 Gardening, Home and Nature Thread, July 5 Absent Friends
Jay Guevara 2025
Jim Sunk New Dawn 2025 Jewells45 2025 Bandersnatch 2024 GnuBreed 2024 Captain Hate 2023 moon_over_vermont 2023 westminsterdogshow 2023 Ann Wilson(Empire1) 2022 Dave In Texas 2022 Jesse in D.C. 2022 OregonMuse 2022 redc1c4 2021 Tami 2021 Chavez the Hugo 2020 Ibguy 2020 Rickl 2019 Joffen 2014 AoSHQ Writers Group
A site for members of the Horde to post their stories seeking beta readers, editing help, brainstorming, and story ideas. Also to share links to potential publishing outlets, writing help sites, and videos posting tips to get published.
Contact OrangeEnt for info:
maildrop62 at proton dot me Cutting The Cord And Email Security
Moron Meet-Ups
|
« Thursday Morning Link Dump |
Main
| On the Platinum Coin Trick »
January 10, 2013
Enron and the Trillion Dollar Coin"The Enron scandal grew out of a steady accumulation of habits and values and actions that began years before and finally spiraled out of control." ~ McLean & Elkind, The Smartest Guys In the Room Once upon a time, Enron had a real business that made real profits. They differentiated themselves from their competitors and stood atop the world, briefly, as one of the most successful, highly regarded and innovative enterprises ever. Then the roof caved in. Or at least that's how it appeared, anyway. In reality, as books like The Smartest Guys In the Room and Conspiracy of Fools well document, their focus changed rather early on from engaging in transactions that were good for the business economically to doing transactions that would best window-dress the financial statements by gaming the rules, accumulating massive amounts of debt along the way. Their use of mark-to-market accounting was blamed, yet it was officially blessed by the SEC. Their hidden debt, masked by layers of special-purpose entities, was (mostly) accounted for within the rules, too, although they were straining at the outer edges. Those rules, though, were made by man. The rules of economics, whether applied to companies or governments, are forces of nature that don't care that the FASB said 3% outside ownership in an SPE was sufficient to take it off balance sheet or that congress, in its infinite wisdom, created a loophole for the treasury secretary to mint an enormously-labeled platinum coin so the government can keep on spending. When the end comes, it comes quickly. "We were so sure of what we were doing and where we were going," one executive who attended [Enron's] San Antonio meeting said. "We didn't know we were living on borrowed time." I couldn't help but think of Enron as I read the Business Insider piece Gabe linked yesterday, where the Smartest Guys In The Room are saying that the government can do this trillion dollar coin trick and keep the checks going out the door forever with no negative or unforeseen consequences. "It's a one time thing", they say, ignoring the fact that we'll run a trillion dollar deficit this year that eats up the newly-minted room under the debt ceiling. Then what? Mint another coin, I guess. Meanwhile we'll continue to slog along at ~7%-8% U3 unemployment and ~2% real GDP growth (or lower, when you factor the government's deficit spending out of that number) because the tricks and gimmicks aren't really fooling anyone. Most of the commentary on the trillion dollar coin idea has focused on its legality. That's the wrong question. The right question is: "Is this a wise thing to do?" And the answer is a resounding, "NO!" So look for the Obama administration to press forward with it. See also: Megan McArdle, Washington Goes Platinum Seemingly, the most important thing is for the president to defeat intransigent Republicans—even if that means that the president “for all Americans” who once spoke of winning the future and healing the planet will be reduced to presiding over the Franklin Mint. | Recent Comments
JTB:
"Used a lime juice marinade on a steak this week. L ..."
Ben Had: "SanFranpsycho, do you use much olive oil? ..." Skip: "That 1stWP took 2 hours more than it should have ..." Weasel: "Posted by: Ben Had at July 06, 2025 05:55 PM (HFcK ..." Ben Had: "Weasel, you gonna share? ..." Weasel: "We're at el beacho so tonight it's shrimp 'n crabc ..." Braenyard - some Absent Friends are more equal than others _ : "Interesting weather modification conjecture. ht ..." San Franpsycho: "SanFranpsycho, you and Mrs.F are the epitome of gr ..." The Neon Madman: "When I was a kid, some taverns in my part of Wisco ..." Rev. Wishbone: "Chicken tetrazzini would be a nice way to wrangle ..." San Franpsycho: "Last Sunday the kids came for dinner and I made pa ..." Joe Kidd: "I'm not a scientist, I'm a cook. With a packed fri ..." Recent Entries
Food Thread: Puttering And Popcorn!
First World Problems... Russia Will Win In Ukraine, And It Doesn't Matter At All Sunday Morning Book Thread - 7-6-2025 ["Perfessor" Squirrel] Daily Tech News 6 July 2025 Saturday Night "Club ONT" July 5, 2025 [The 3 Ds] When in Rome (or Hollywood)... [Lex] Hobby Thread - July 5, 2025 [TRex] Ace of Spades Pet Thread, July 5 Gardening, Home and Nature Thread, July 5 Search
Polls! Polls! Polls!
Frequently Asked Questions
The (Almost) Complete Paul Anka Integrity Kick
Primary Document: The Audio
Paul Anka Haiku Contest Announcement Integrity SAT's: Entrance Exam for Paul Anka's Band AllahPundit's Paul Anka 45's Collection AnkaPundit: Paul Anka Takes Over the Site for a Weekend (Continues through to Monday's postings) George Bush Slices Don Rumsfeld Like an F*ckin' Hammer Top Top Tens
Democratic Forays into Erotica New Shows On Gore's DNC/MTV Network Nicknames for Potatoes, By People Who Really Hate Potatoes Star Wars Euphemisms for Self-Abuse Signs You're at an Iraqi "Wedding Party" Signs Your Clown Has Gone Bad Signs That You, Geroge Michael, Should Probably Just Give It Up Signs of Hip-Hop Influence on John Kerry NYT Headlines Spinning Bush's Jobs Boom Things People Are More Likely to Say Than "Did You Hear What Al Franken Said Yesterday?" Signs that Paul Krugman Has Lost His Frickin' Mind All-Time Best NBA Players, According to Senator Robert Byrd Other Bad Things About the Jews, According to the Koran Signs That David Letterman Just Doesn't Care Anymore Examples of Bob Kerrey's Insufferable Racial Jackassery Signs Andy Rooney Is Going Senile Other Judgments Dick Clarke Made About Condi Rice Based on Her Appearance Collective Names for Groups of People John Kerry's Other Vietnam Super-Pets Cool Things About the XM8 Assault Rifle Media-Approved Facts About the Democrat Spy Changes to Make Christianity More "Inclusive" Secret John Kerry Senatorial Accomplishments John Edwards Campaign Excuses John Kerry Pick-Up Lines Changes Liberal Senator George Michell Will Make at Disney Torments in Dog-Hell Greatest Hitjobs
The Ace of Spades HQ Sex-for-Money Skankathon A D&D Guide to the Democratic Candidates Margaret Cho: Just Not Funny More Margaret Cho Abuse Margaret Cho: Still Not Funny Iraqi Prisoner Claims He Was Raped... By Woman Wonkette Announces "Morning Zoo" Format John Kerry's "Plan" Causes Surrender of Moqtada al-Sadr's Militia World Muslim Leaders Apologize for Nick Berg's Beheading Michael Moore Goes on Lunchtime Manhattan Death-Spree Milestone: Oliver Willis Posts 400th "Fake News Article" Referencing Britney Spears Liberal Economists Rue a "New Decade of Greed" Artificial Insouciance: Maureen Dowd's Word Processor Revolts Against Her Numbing Imbecility Intelligence Officials Eye Blogs for Tips They Done Found Us Out, Cletus: Intrepid Internet Detective Figures Out Our Master Plan Shock: Josh Marshall Almost Mentions Sarin Discovery in Iraq Leather-Clad Biker Freaks Terrorize Australian Town When Clinton Was President, Torture Was Cool What Wonkette Means When She Explains What Tina Brown Means Wonkette's Stand-Up Act Wankette HQ Gay-Rumors Du Jour Here's What's Bugging Me: Goose and Slider My Own Micah Wright Style Confession of Dishonesty Outraged "Conservatives" React to the FMA An On-Line Impression of Dennis Miller Having Sex with a Kodiak Bear The Story the Rightwing Media Refuses to Report! Our Lunch with David "Glengarry Glen Ross" Mamet The House of Love: Paul Krugman A Michael Moore Mystery (TM) The Dowd-O-Matic! Liberal Consistency and Other Myths Kepler's Laws of Liberal Media Bias John Kerry-- The Splunge! Candidate "Divisive" Politics & "Attacks on Patriotism" (very long) The Donkey ("The Raven" parody) |