January 13, 2004

How Much of a Ponzi Scheme Was Enron, Anyway?

A correspondent writes:

One piece of the puzzle I don't understand . . .

Richard Kinder is President and COO of Enron from 1990 to 1996. He leaves and takes over Kinder Morgan, which is a pipeline company. Then, it would appear, he successfully executes a strategy of building up from solid pipeline assets.

In other words, it (tentatively) looks like the guy who is really running Enron leaves in '96 and proceeds to successfully execute the strategy Enron avowed. It makes me suspect there really was a there there at Enron, but that Kenneth Lay allowed silly lieutenants like Skilling, Fastow, White, et cetera to start doing silly things--like overpaying for foreign assets and building up big trading infrastructures to trade in immature markets.

Posted by DeLong at January 13, 2004 12:24 AM | TrackBack

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