Debt a la Enron

Doug Henwood dhenwood at panix.com
Fri Jan 25 08:21:27 PST 2002


C. G. Estabrook wrote:


>How about the the possibility that Enron's practices in hiding debt --
>partnerships, off-shore accounts, etc. -- are not unique to Enron? If a
>significant number of other American firms are doing similar things to
>tweak their balance sheets (with the help of complaisant auditors) --
>wouldn't the true state of the American economy over the last few years be
>quite different from the common estimate?

Yes, it would be. And profits would be lower, too (though the BEA does try to adjust for tax-driven underreporting).

Doug



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