Reply #269: Enron's Second Quarter (6)

[waleska]

May 2nd 2001: President George Bush pretends like he had never heard of something called energy trading (even though the top 60 utility companies in the nation were doing it) and orders all federal agencies in California to cut power use in an effort to find a solution to the state’s energy crisis.

On May 9th, The Street.com posts one of the first articles publicly discussing Enron’s suspicious financial transactions

8 days later the terminator, Kenneth Lay and Michael Milken meet at the Peninsula Hotel in Los Angeles. I am about 60% sure that this was legit information, but it is purely pop trivia anyway.

The following day, Saudi Arabia announces that it “picked eight companies to participate in three projects that are expected to total $25 billion over several years”. Included are Exxon Mobil Corp., Royal Dutch Shell Group, BP, TotalFinaElf, and Enron Corp., the only non-oil company chosen.”

Enron even fooled Saudi Arabia and Crown Prince Abdullah? Get outta here.

Two days later a California poll finds that President Bush is faring far better then Gov. Davis amid the state’s power crisis. The same day, a Mumbia poll finds that Bush is faring far better then Gov. Davis amid Maharashtra state’s power surplus.

The next day on the 22nd of May, as if the California Attorney General Bill Lockyer doesn’t know how the energy trading game is played, Lockyer blames Reliant and Enron and Lay, personally saying he would “love to escort Lay to a 8 x 10 cell that he could share with a tattooed dude who says “Hi, my name is Spike, Honey.”

Electricity? “Spike” get it?

Doesn’t Lockyer know Enron’s “problems don’t start” until December?

At this point there are a lot of people that are onto Enron’s games but Sharron Watkins (the whistle-blower) hasn’t even entered the picture yet.

It is now June.. and it is the last month Enron accountants cook their books so if you are thinking about selling your shares at a profit, this month would be the last opportunity.

June highlights: Louis Freeh steps down. To put things into perspective Freeh presided over the FBI during “The Era of Greed” while Bristol Meyers Squibb was misstating years of earnings. Louis now sits on the Board of Bristol Meyers Squibb

June: Cheney raises Enron concerns over payment of Dabhol energy in meetings in Washington with India’s Congress Party, Sonya Gandhi which now controls Maharashtra. Again, this is not only pure theatre but in a little while we find out that Gandhi is actually Italian (the Indians in the world’s largest Democracy were totally taken by surprise by this one). Sonya had been giving some consideration to opening a chain of restaurants after she ends her stint in “public service” called “Gandhi’s Traditional Pizza”

June: Karl Rove sells his shares of Enron (this is big money)

June: Kenneth Lay donates 25K to Governor Rick Perry (this is small money)

Note: In the bigger picture, campaign contributions are “small money” which is why the “liberal” media and politicians and so-called “watch-dog” groups focus so much on campaign contributions. Following the small money makes it appear that somebody is actually following ANY money. As a rule, if there is “much fanfare” regarding financial transactions it is either a diversion or it is relatively insignificant.

Here are three examples:

John Kerry and Enron: The small money that was followed here was “dividends”
When Monika was getting started with Bill in December of 1995, Heinz Kerry announced that Kenneth Lay will serve as a member of the Heinz Center philanthropy, then John Kerry’s Heinz family trust bought between $250,000 and $500,000 worth of Enron’s stock.
Lets do the math. Enron is trading at $18.00 per share when they buy it and its trading at about $21.00 per share when they are “reported to” sell it. $500,000.00 would have bought about 28,000 shares. 28,000 multiplied by $21.00 is about $588,000.00. Net profit: $88,000.00
So the both the “liberal” and “conservative” media reports that the Heinz-Kerry ownership and sale of stock brought about $5,000 to $15,000 in “dividends”
The trivial amount diverted attention from the net profit. Leave it to the money-counters to assume that the gain in “dividends” is more significant than the gain in share value.

Martha Stewart and ImClone: The small money that was followed here was the short term loss.
On the 28th of December 2001, the FDA decided not to approve Erbitux. The day before the FDA decision, Martha Stewart sold her 3,928 shares of ImClone stock.
The Wall Street Journal claimed that by selling before the news Martha avoided a loss of $51.222.00
Now this math sounds like Arthur Anderson is around here somewhere
ImClone was trading at $75.00 per share ($294,600.00) when she sold. When the s—t hit the fan in June of 2002 the shares were trading at $7.00 to $8.00 per share ($31,423.00)

$294,600.00 – (minus) $31,423.00?

It appears Martha avoided a loss of a little bit more than $263,000.00 but then again nobody was actually counting money back then anyway.

I wonder what kind of “a loss” Peter G. Peterson, John Mendelsohn and George H.W. Bush from M.D. Anderson Cancer Center “avoided”?

Insider trading is one thing but insider trading in fictitious money in a corrupt company run by a corrupt CEO is another.

October 23rd of 2010 is when Sam Waksal gets out of prison

Example #3: George H.W. Bush and Global Crossing: On the 16th of November 1999, when everyone was expecting the DOW to reach 36,000, George and Barbara decided to play it safe so they sell their 100,000 shares of Global Crossing for a reported $4.45 million. These were the shares he got for free for a speech he vomited at in Japan.
Lets say Global Crossing is reported to have donated $30,000 (small money) in 1999 to the Bush campaign.
Here is the math the liberal press can’t seem to compute:
What is $30,000 (small money) subtracted from $4.45 million (big money)?
Actually, even the published amount was wrong since Global Crossing was trading at $52.00 per share at the time of the sale.
Rush Limbaugh got the Terry “Global Crossing” McCullife part right but he never made any references to Barbara or George “Global Crossing” Bush?
Half of history and half of the facts have always been good enough for the King and his Court.

The big money is in corporate holdings in corrupt companies. Follow the big money – not the small money.

Now, back to events in June just before Enron starts counting their money accurately in Q3:

Sami al Arian and some 130 other Muslims attend a White House meeting with President Bush.

In June of 2000, Sami al Arian was campaigning for George Bush in Florida (this would be during the war we supposedly didn’t was going on at the time)

I’ll be writing on a mishap in 1999 often referred to as the “U.S.S Cole bombing” to put this Muslim meeting and many other unlikely events in 1999 into clearer perspective.

Suffice it to say, at this point in time there should have been a U.S.S. Cole mindset among government leaders.

On the first of June the “Premium Processing Program” begins. Foreign celebrities, athletes, executives and other types of workers will be able to pay $1,000 to get work-visa applications processed within 15 days instead of the usual 3 months or more.

3 months? Isn’t that a business quarter?

Remember? The function of all government is to pretend to fail

So wouldn’t you know it.. the “visa express” program expedites the entry of both Abdulaziz Alomari and Salem Alhamzi.

Let me get this straight. The agencies responsible for keeping Americans safe from foreign terrorists were having such a difficult time gathering, assembling, and coordinating information from visa holders for approval within a waiting period of “three months or more” they decide to shorten the approval period to 15 days?

One would think that after seeing the August 6th 2001 document: “Bin Laden Determined To Attack Inside The United States” Condoleezza Rice would have suggesting suspending the new “Premium Processing Program”?

On the 18th of June, the FBI pulls agents investigating the bombing of the U.S.S. Cole out of Yemen due to a “specific and credible” threat against them.

Two days later, Yemen arrests 15 people suspected of plotting to bomb the U.S. Embassy in Sanna. Meanwhile, a reported recruitment videotape from Osama bin Laden’s group claims responsibility for the Cole bombing and is viewed by the AP in Kuwait

The next day the INS announces that it “has no plans to actively target H-1B workers for deportation”. The INS spokeswoman says she “doesn’t know of any H-1B workers who have been deported simply because they have lost their jobs.”

The “most recent” contact between Kenneth Lay and Dick Cheney occurs at a conference on the 24th of June.

To try to help Enron collect a $64 million debt from Dabhol, on June 27th Cheney lobbies India’s opposition leader, Sonia Gandhi on behalf of Enron shortly after the Cheney energy task force specifically recommended promoting energy production in India

Then next day in an attempt to make it look like he doesn’t understand the book-cooking energy business either, the Wall Street Journal’s, Daniel Pearl, writes “AES Expresses Interest In Enron’s India Project”
“AES offers to buyout troubled electricity venture. Dabhol hasn’t produced power for more than a month”

Those bumbling fools at AES. Dabhol isn’t paying Enron – why would they pay AES?

As if India was ever expected to pay Enron.

The same day of Pearl’s piece, Bush names Elliot Abrams to the top national security post and the Supreme Court rules 5-4 that immigrants who commit crimes can’t be held in prison indefinitely, if the U.S. can’t deport them.

Huh? Its that damn ACLU I tell ya!

Enron’s second business quarter is over.


July 01, 2001: This is the first day of the first quarter that Enron counts its money honestly since 1993.

Eventually every financial scam comes to a point where it needs to invoke its exit plan.

What is Enron’s exit plan?

July 01, 2001: California Senator Diane Feinstein who is on the Intelligence Committee warns CNN “Intelligence staff tell me that there is a major probability of a terrorist incident within the next three months.

Next three months?


Isn’t that a business quarter?