You're Wrong About cover image

Enron

You're Wrong About

00:00

Mark to Market Accounting Is a Bad Idea

Mark to market accounting doesn't generate any cash flow, so if you're reporting billions in revenue and you have no cash flow, your stock price isn't going to go up. So the thing that enron has to do, and this is what motivates all the fraud, is they have to show cash floe. Yes, if you stop lying, the stock prices go down, and then everyone loses money and everyone's upset. El tha's a thing. N that's why this works for seven years, and then in 24 days it doesn't work any more. Looks literally like a fairy tale spell. Seven years of good luck, and thet will all fall from your pedest

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