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No THE money did not evaporate, though to someone
who is looking at paper profits and real money disappearing in a rigged
game in a locked market (they where prohibited from selling or hedging) it may
appear so.
Each pay day the good people of Enron purchased
shares of the companies stock as part of a 401-k plan. This money was
transferred to those who where selling, both the innocent and the
guilty.
Remember we are talking about the world
economy. As any second in time, the world economy is always a zero sum
game. Over any period of time the world economy is an increasing sum
game. As long as people work, the world economy grows, though at times
such as during the great depression when many people are not working it grows at
an extremely slow rate.
To answer the question about a particular market
being a zero sum game; any market as a sub-set of the world economy is a
declining sum game, as brokers and other costs remove money from the
market. With today's low fees and efficiency it declines slowly, but
declines none the same. However, this money does not disappear from the
world economy.
Even as we speak the executives at Enron are still
building homes by spending the money they made from selling their stock to the
employees. They are supporting the construction industry, a carpenter,
plumber, electrician, etc. is taking that money home.
I am in no way condoning what they did, just
explaining where the money moved to, and why it is deceptive on the part of
politician to keep harping on it.
good luck and good trading,
Ray Raffurty
<BLOCKQUOTE
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----- Original Message -----
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
<A title=delta88343@xxxxxxx
href="mailto:delta88343@xxxxxxx";>delta88343@xxxxxxx
To: <A title=realtraders@xxxxxxxxxxxxxxx
href="mailto:realtraders@xxxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxxx
Sent: Thursday, August 01, 2002 7:22
PM
Subject: Re: [RT] bear market stats
<FONT lang=0 face=Arial size=2
FAMILY="SANSSERIF">What about the case of Enron? Peoples
retirement accounts lost everything. Were people seeling all the way down
where there was an actual transfer of funds? I don't think so. Sure,
the executives took hundreds of millions....but billions in percieved value
(stock value) disappeared. Cooked books and perception drove the price beyond
its actually accounting standards value. Their money actually did
evaporate. Didn't it?The above are questions, not statements of
fact. To
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