Originally Posted by STONE
He never had to go through what he put all those people through. He lived a life of luxury on their dime and never had to pay for it. He was 63 not that thats old but 63 years of galavanting around spending everyone elses money.
I stand by what gladiator said. He got of easy.
so do most people who are CEO's of major corporations.
What nobody tells you is that a lot of those people who "lost everything" were plain and simple...idiots.
They had no financial thinking other than pure greed.
Here's the facts they dont tell you.
When people were "encouraged" to invest in Enron it was in the form of stock options.
These options were in leiu of bonuses that they would have had to pay taxes on.
So greed step one, gimmie the stock at areduced rate instead of money so i dont have to pay any taxes on it.
Next, they were encouraged to invest their 401k money into the company by being offered "extra" options if they did so.
Meaning that they didn't have to buy enron stock with their 401k money, but if they did, they were given a small bonus on the amount of stock they could buy. instead of 100 shares, they might get 110 if they bought Enron stock.
So greed step two, they wanted more money so they primarily invested in Enron stock instead of doing what any financial analyst in the world will tell you, diversifying into a broad spectrum of stock and bonds and other investments in case of market corrections in one sector.
finally, they were just plain and simply stupid when they kept all of their money in one specific stock period.
Would it have been any different if they had been entirely invested in CISCO stock or Lucent stock or even Amazon stock when any of the above mentioned took major hits in the market?
Yes it would, we wouldn't coddle them and feel all sorry for them for being idiots and not knowing what the fuck they were doing.
In fact, there are many people who DID take it right in the ASS when the above three took major corrections.
Money isn't something to just be blindly placed into investments. People make and lose millions of dollars by risking their money on a daily basis.
A large majority of these people lost what was GIVEN to them by the company. It was in the form of bonuses paid out on the very "cooked books" that people have gone to prison for.
If these books hadnt been cooked, they would have never received it in the first place.
Also, keep in mind that the practice of encouraqging employees to invest in the company they work for by giving them extremely low priced stock options is rampant throughout the world. Not jsut here in the USA. It is used by almost every single Fortune 500 company in the world. And many financial analysts have warned people for years that this very thing could have happened.
This is no different than the S&L scandal of years past with one giant exception, this one is going to cost more, because people are even dumber now than they were then when it comes to investing.