The Fourth Disaster Begins at the Dawn of the Millennium

"It sounds like it will cost a lot of money, after all, it's $500 billion in assets...

"

"Don't worry, we have plenty of money now. We made a lot of money in the process of shorting Enron."

Chapter 234: Strengthen Yourself with An Ran's "Flesh and Blood"

"Can you tell me why Denon gave up on saving Enron? After all, the merger plan it released before gave the market a lot of confidence in Enron, but for some reason, Denon didn't do it in the end..."

When Enron was struggling to survive, there was almost no institution in the market willing to save or able to save Enron, but at this time, De-Energy suddenly stepped forward and tried to save this rival that had been constantly attacking it. It mobilized nearly 100 billion US dollars and prepared to acquire the entire Enron to help it get out of trouble.

However, the deal was abruptly terminated before Enron went bankrupt, and Denon did not decisively help Enron revive, which also made the player community breathe a sigh of relief, finally preventing the unexpected situation from happening and not letting the duck at their mouth fly away. Now, Enron's CFO is in the hands of the players, and of course the players want to satisfy their curiosity and understand the reason why the deal was abruptly terminated.

"The direct cause was the mysterious disappearance of an inexplicable amount of cash," Enron's CFO replied.

Before negotiating the deal, D-Energy thought Enron still had about $30 billion in cash, but Enron's corporate documents showed that it only had $10 billion in cash. You know, D-Energy had just injected $15 billion in cash into Enron. D-Energy's CEO immediately questioned this. But... Enron still tried to keep the secret until the last moment, even in the face of its savior in the most urgent moment.

For traders, a credit crisis does not necessarily lead to bankruptcy, and there are cases where companies have been saved by taking measures to restore their credit. In 1991, after the Treasury bond bidding scandal, Salomon Brothers' credit suffered a severe blow. The legendary Buffett played a vital role in the subsequent reconstruction of the company and thus restored the company's credit.

But Enron took a different path. After its covert financial operations and opaque information disclosure scared off investors, Enron refused to repent and eventually scared off its potential saviors. Who would save a bottomless black hole?

In this way, its last straw was thrown away by itself. In this situation, trading partners terminated their transactions with Enron one after another, and Enron's trading business, which it relied on for survival, completely stagnated, and its stock trading positions shrank dramatically. After the stock market opened, investors voted with their feet, and with Cao Boyuan and other players stirring up trouble in the market, all the people and institutions who invested in Enron sold Enron stocks at a loss, and its stock price completely lost support. The building built on the beach fell apart in an instant.

"It's fucking outrageous..." the player in front of the screen muttered, but when he thought about Enron's huge financial hole, distorted corporate culture and inhumane system, he suddenly felt that this was very reasonable. Cheating to the end was Enron's style. Enron summarized its values ​​as communication, respect, honesty, and excellence, and displayed them grandly on the homepage of the company's "Code of Ethics". After Enron announced bankruptcy, some Enron employees who suffered heavy losses had an idea and auctioned the items they had originally sent online. Surprisingly, they were very popular. The most ironic and collectible item is the "Code of Ethics" that Enron sent to its employees. It is priced at $225!

At the same time, the collapse of Enron Corporation made it quickly "popular" in the United States, but this time, it was given new life from a linguistic perspective by comedians and humor writers. Its name has changed from a special noun to a verb, with the basic meaning of "to deceive someone."

Enron is doomed, and soon one of the "Big Five" international accounting firms will follow suit.

In the process of weaving Enron's modern version of "The Emperor's New Clothes", Enron's auditing firm Arthur Andersen also played the role of aiding and abetting. Arthur Andersen, which served as both Enron's auditor and management consultant, designed related transactions for Enron by providing financial consulting services, and gave Enron's illegal operations a green light through its role as an auditor. It even destroyed thousands of pages of financial information during the regulatory agency's investigation of the Enron incident. Its consulting business revenue far exceeded its auditing business revenue. Various signs prove that Enron's illegal operations were a conspiracy and mutual benefit between the company, senior executives, financial institutions and auditing firms.

The demise of Enron and Andersen is really not worthy of sympathy. The ones who really deserve sympathy are the ordinary people in California who experienced the scorching sun and freezing cold throughout the year 2000. Shouldn't a company that doesn't respect the most basic credit, disregards the most basic ethics, and violates the most basic laws go bankrupt?

"It is time to replace Enron with more socially responsible companies...

Enron went bankrupt, and the astonishing $500 billion in assets needed to be disposed of. General Electric, billionaire Buffett and Shell Oil were all interested in getting a piece of the pie. In addition to these large companies, some small companies also took a try-and-see attitude and prepared to acquire some assets that could complement their own development. Everyone prepared a lot of cash, but Enron's assets were too huge, and no one could swallow them all at once. Moreover, since Enron had gone bankrupt, all previous mergers and acquisitions and stock swaps had become invalid. Enron's assets had to be used to repay debts first.

In fact, it was the Enron creditors committee that disposed of Enron's assets, and it played a significant role. First, the creditors committee has the right to participate in and influence the formulation of the bankruptcy reorganization plan. This includes making suggestions and opinions on the reorganization, sale or other disposal plans of the company's assets; second, before the bankruptcy administrator sells the company's assets, it usually needs to consult with the creditors committee and obtain its consent. The committee has the right to review the terms of the sale and make suggestions for amendments; third, the creditors committee monitors the activities of the bankruptcy administrator to ensure that its actions are in the best interests of the creditors. This includes supervision of the asset disposal process to prevent assets from being undervalued or improperly handled.

So, who can join this committee? Usually, the creditors' committee is composed of creditors holding larger debt amounts.

When representatives of General Electric, billionaire Buffett and Shell Oil gathered together, they found that the name of an unknown "small company" was sitting on the seat of the creditors' committee - Power Works.

"When did it become the main debtor of Enron?" - Representatives of many old companies raised questions, but the reality is that PowerWorks does hold a considerable amount of Enron's debt, and it has considerable weight in this creditors committee.

After all, it was the players who set off the pace of the Enron market panic. They certainly knew when Enron's bonds would go from "hot cakes" to "junk". When the market was most pessimistic about Enron's bankruptcy and debt prices were falling, the companies of the One World Group bought a large amount of these "junk" bonds in the market, and then transferred them to Power Works, which caused Power Works to accumulate a huge amount of Enron's debts in one go.

But PowerWorks didn't mean to swallow up Enron alone. It only needed to eat up the best ones. As for which assets were good and which were bad, the players still had Enron's CFO in their hands. When other companies still needed to be carefully evaluated, the players who had access to inside information knew which assets to buy as if they had turned on a perspective hack.

As for Enron's CFO, he was now completely at the mercy of others. After revealing all the inside information he knew, the player patted the CFO on the shoulder and said earnestly: "Okay, you kid, get ready to go to jail."

"Um?"

"You don't think you don't have to pay any price, do you? Even if you become a tainted witness, it's just a reduced sentence! What do you think will happen to Kenneth and Skilling? Maybe life imprisonment, or maybe they suddenly have a heart attack in prison and die! We have some evidence that can help you reduce your sentence. In addition, we have some personal friendships in the White House and the Department of Justice... You have to know that not everyone can be a tainted witness."

Chapter 235: The Power Workshop is an "outlier"

A large exhibition center was crowded with people. An unprecedented job fair was being held here. The bankruptcy of Enron left thousands of people unemployed. They heard that a large number of Enron's power plants, natural gas processing plants, and pipeline companies fell into a company called "Power Works", which immediately attracted those who lost their jobs due to Enron's bankruptcy.

There are all kinds of people in the job-seeking team, from the financial elites in suits and ties with serious expressions to the engineers and technicians in casual clothes with unshaven beards. Their eyes are filled with expectation, but also with a hint of anxiety and uneasiness. In this period when Enron collapsed, everyone is worried about their future.

Standing at the front of the line was a young trader, wearing a well-cut dark grey suit, his shoes polished to a shine, and his hair combed meticulously. He glanced at his watch from time to time, tapping his toes lightly on the ground, anxiously waiting. Finally it was his turn, he walked quickly to the booth, and stretched out his hand to shake hands with the HR.

"Hello, my name is Jason, and I used to work as a senior trader at Enron's power exchange. I worked at Enron for five years, mainly responsible for energy derivatives trading. Under my leadership, our trading team created amazing profits. In the past five years, I brought the company more than $4000 million in revenue. I am proficient in various complex financial instruments and can......"

HR politely interrupted him, "Sorry, Jason. Our company currently does not have a financial transaction department. The company is more focused on the real economy and long-term sustainable development."

Jason's smile froze instantly. "What? There is no financial trading department. That...but...but...but my experience and skills can bring great value to your company! I..."

"I understand your professional abilities, but the direction of our company does not quite match your experience. Thank you very much for your interest and I wish you find the right job."

Jason's face flashed with disappointment and confusion, but he quickly adjusted his expression, thanked politely and left the booth. However, he did not walk away, but stood aside and continued to observe the interview situation.

Then, a middle-aged man with a thick beard, wearing a plaid shirt and jeans, walked up to the stall.

"Hi, I'm Johnson. I've worked at Enron for fifteen years as an electrical engineer, responsible for the installation, maintenance and troubleshooting of power generation equipment to ensure the safe and efficient operation of the power system."

HR's attitude became more enthusiastic. "Hello, Mr. Johnson. Can you tell me more about your specific job duties?"

Johnson began to describe his work experience in detail. The HR nodded from time to time and smiled with satisfaction. "Mr. Johnson, your experience is very valuable. I would like to invite you to participate in the next round of interviews and have an in-depth exchange with our technical director."

Johnson's eyes lit up. "Really? Thank you so much! I will definitely prepare well."

At this moment, Jason, who had been watching from the side, couldn't help himself. He strode forward, with obvious dissatisfaction in his voice, "Wait, what's going on? Why can he enter the next round, but I was rejected?"

"Sir, please calm down..."

But Jason couldn't control his emotions anymore. "I created tens of millions of dollars of profit for Enron! I am a top trader! And what about him?" Jason pointed at Johnson. "He is just an ordinary engineer. What value can he bring to the company?"

"Mr. Jason, please understand that our company's needs are really not compatible with your expertise..."

Jason interrupted HR, "Demand? Don't you need someone who can make money? I can generate tens of millions of dollars in profit, but what about him? He only knows how to spend money!"

"Mr. Jason, our company does need to make money, but what it needs more is stable and sustainable development. Mr. Johnson's experience is crucial to our core business."

"This is ridiculous! Without traders like us, how could the company grow so quickly? Enron has such a huge market value because of our business!"

"However, Enron's actions caused it to go bankrupt, and now PowerWorks is recruiting..."

Apparently, someone thought PowerWorks was another Enron, so when they applied, they were surprised to find that PowerWorks didn't need traders? This is ridiculous!

By the time Enron entered the 1990s, it had established a leading position in the energy trading field. Enron CEO Skilling, like many large American companies, believed that Enron would not need any physical assets in the future. Enron believed that with the deregulation of the market, any product could be commercialized, thus making commodity trading possible. In this way, Enron's role was transformed from an energy supplier and energy trader to a financial trading company based on any commodity.

Based on this strategic thinking, Skilling argued that the company's high growth did not require a large amount of physical assets, which took up cash, and it would be more profitable to use the cash for trading business because the trading market was more liquid, so Enron had to break away from the bulky physical assets. Most of the funds were used to build a wide variety of trading businesses, and the trading varieties were almost everything, from electricity to broadband, from credit derivatives to advertising time. Some people joked that Enron would trade anything under the sun.

This is not just Enron's idea. All large companies in the United States, especially those in the secondary industry, are trying to get rid of the situation of "dumb dinosaurs" (referring to those who occupy a large amount of physical assets) and turn themselves into more profitable "light asset players". For example, the famous General Electric was once famous for electrical equipment and household appliances. However, today's General Electric is increasingly relying on its subsidiary GE Capital to provide financial products and services, and the profits earned from financial transactions have become one of the company's most important sources.

Energy companies such as Duke Energy, Williams Company and DeNeng Corporation are actually imitating Enron's operating model, but they are not as outrageous as Enron, with no such frequent speculative transactions and no such daring financial fraud.

Among the companies that divided up Enron's assets, PowerWorks was an outlier. It had no financial business. Just as the company claimed, it was a company based on physical assets and income. An energy company should do energy company business instead of becoming a consortium.

Before Enron collapsed, almost all Wall Street investment institutions criticized PowerWorks for its conservatism. "PowerWorks' CEO is simply an old-fashioned person who lives in the early days of electrification. In a rapidly changing market environment, abandoning financial business means missing out on opportunities to gain additional benefits through financial innovation and market operations, especially during periods of high volatility in energy prices."

But after Enron's collapse, Power Works suddenly took the initiative to divide up Enron's high-quality assets, shocking Wall Street investment institutions.

"Who says Power Works doesn't know how to do financial operations...at least there are people behind them who understand."

Players working for Power Workshop also want to say this, "Who said we can't do financial operations? It's just that Power Workshop doesn't need to do financial operations by itself. We are just a subsidiary of Universal Group in the energy field. Professional financial means are of course left to Lao Cao and the group of Wall Street wolves. Our position is to do energy. This is determined by the Universal Group's board of directors..."

Chapter 236: I Have No Intention of Power

It would take time for PowerWorks to carve up Enron's assets, and the power crisis in California continued. However, Enron's bankruptcy gave hope for a solution to the power crisis. As the incident was so serious, Washington began to intervene in all aspects. People also saw that during the nearly one-year power crisis in California, there was still a city shining brightly in the dark night of California.

The sky was dyed a warm orange-red by the setting sun, and the breeze blew gently, bringing the salty and humid smell of the ocean. At this moment, the campus was full of laughter and joy. Huge tents were set up one after another on the playground, filled with long tables and folding chairs. Outside the tents, several large barbecue grills were emitting smoke and exuding tempting aromas. The graduating students walked around excitedly, hugging each other from time to time to take photos, or busy setting up the venue and carrying food.

This year, the school's graduation celebration was particularly different. Perhaps Principal Rachel was tired of the same old activities, so she moved this year's graduation event to the evening, with an outdoor barbecue! Everyone enjoyed a great meal and celebrated graduation happily.

Another thing that is different this year is that Underwood came suddenly. This was not in the plan, but it is definitely not a bad thing for a mayor to attend the event. It is a good thing! After Underwood came to the school, Principal Rachel immediately came to greet him. After all, this is Chief Lin who gave him a "broad stage" and is also the popular mayor of Los Angeles.

"Mr. Underwood, welcome to our school's graduation ceremony. Please come up to the stage and say a few words later."

"Today, students are the protagonists, so I won't bother you for now. I was passing by here after get off work, and the young comrades told me that there is barbecue here, and it's free, so I came here to eat..."

"That's not good. Since you've come here, how can you leave without saying a few words? Come on, come on..."

"Yes, Chief Lin, please say a few words to make our Principal Rachel look more important!" The players who served as part-time bodyguards for Lin Dengsheng also advised.

As night fell, the lights on campus gradually lit up. During the power crisis in California, it was probably only in Los Angeles that this could be done at night. Graduates took their seats one after another. Parents were also off work at this time. They were invited to the school to participate in the event, and their faces were filled with pride and expectation. Underwood was arranged on the podium, sitting between the principal and other guests.

The ceremony officially began. Principal Rachel gave a speech first, reviewing the past year and praising the students' efforts and progress. Then, student representatives came to the stage to share their high school life and their expectations for the future. Finally, it was Underwood's turn to speak. Underwood's appearance immediately attracted the attention of everyone in the audience, and some people even shouted unconsciously, just like fans chasing stars. This is not wrong, Underwood himself is a movie star..

Underwood stood up, walked slowly to the podium, looked around at the students and parents present, and then said:

"Dear graduates, I am honored to be here tonight to witness this important moment with you. You are about to embark on a new journey in life and face unknown challenges and opportunities.

We, the generation, have done our best to create a good environment for you and provide the necessary support. But in the end, it is your responsibility and right to shape the future of this world. You grew up in the information age, and your ability to accept new technologies far exceeds that of our older generations. You have a more open worldview and are more likely to understand and respect different cultures. You are more sensitive to social issues and are more willing to contribute to changing the world. You will become future scientists, entrepreneurs, artists, and politicians, and your decisions and actions will determine the direction of the world.

So, I encourage you to bravely pursue your dreams, actively participate in social affairs, and use your wisdom and innovation to bring positive changes to the world. Whether it is developing new technologies in Silicon Valley, telling touching stories in Hollywood, or formulating far-reaching policies in Washington, you have the opportunity to make contributions in your own fields. Remember, the world will eventually be led by you. Cherish this opportunity and take on this responsibility. I and the entire city of Los Angeles are looking forward to seeing the miracles you will create in the future. "

As Underwood finished his speech, the whole venue burst into warm applause. In this warm atmosphere, the formal part of the graduation ceremony ended. Next, it was the barbecue activity that everyone had been looking forward to for a long time. Underwood walked down from the podium, came to the barbecue area, rolled up his sleeves, and personally grilled meat for the students.

The players, of course, were also feasting nearby. Of course, they were not just focused on eating meat and neglecting their work, but were always ready to draw their guns to protect Underwood from being assassinated. The players' protection was also the reason why Underwood dared to be "close to the people" without fear of being assassinated. But...even so, there is no 100% guarantee that Underwood will not be assassinated. Some players also asked Underwood, what if a psychopathic gunman sniped you with a sniper rifle from a distance? Underwood's answer was, "As long as you take my body back to Lindenwan, it is not impossible to rescue it..."

During the barbecue, a student asked Underwood, "Mr. Mayor, you encourage us to pursue our dreams. What is your dream?"

"I certainly have... When I stepped down as mayor of Los Angeles, I had time to do the things I wanted to do."

This sentence immediately aroused the interest of everyone nearby, and everyone pricked up their ears.

"My first wish is to experience the various important industries in the United States. I plan to work in a car factory in Detroit for a year and participate in the production and management of cars; then work on a farm in Texas for a year to understand the needs of farmers and the development of modern agriculture; then do an internship at a financial institution on Wall Street for half a year to understand the operating mechanism of the US financial market; and finally go to Silicon Valley. Maybe I will start a business there and open a technology company to experience how technology changes people's lives."

Underwood paused for a moment, then continued: "My second dream is to drive an RV from our beautiful Los Angeles, across the United States along Route 66, all the way to Chicago, Illinois. Then from St. Paul, Minnesota, go south along the Mississippi River to the Gulf of Mexico. I want to see every corner of this country with my own eyes, see different scenery, and understand the culture and people's lives in different places."

Everyone thinks Underwood's wish is "unique". Generally speaking, American politicians usually plan to be promoted from local government officials to governors, or to members of Congress, and even to become president. By obtaining higher positions, they can exert greater influence on key issues, promote issues they care about, influence decisions and policies, and thus realize the interests of individuals and groups. Or through the "political and business revolving door", the experience and connections accumulated in their political careers pave the way for their opportunities in the business field and bring rich financial returns.

Of course, they won't say this openly, but will package it, such as "The pursuit of power is to obtain a higher platform, from which one can better serve the people and improve the country. Only by holding great power can one influence policies, promote social change, solve social problems, and create better living conditions for the people..."

In comparison, Underwood's aspirations are... too scattered, not at all like the future plans of a professional politician, doing a little bit here and there, but only trying a little bit of everything...

Just when everyone didn't know how to rate, a student's parent suddenly said, "Mr. Underwood, why do you have to consider stepping down? Why don't you consider taking a step forward and running for governor? If people like you are unwilling to hold public office, then people like Gray Davis will take up public office. The next time there is a major power outage in California, what are we going to do......"

Chapter 237: The Suffering of the Common People

What would happen if people like Gray Davis continued to hold public office? Just look at how Californians fared during the power crisis.

In San Diego.

At the door of the hospital's emergency room, the sirens of the ambulance broke the tranquility of the evening. Emily, a young surgeon, rushed to the emergency room, her white coat fluttering behind her, beads of sweat oozing from her forehead.

"What's going on?" Emily asked, with a hint of urgency in her voice.

The head nurse handed her a medical record and answered succinctly: "Multiple traumas and severe internal bleeding. The patient is a firefighter who was crushed by a collapsed building while fighting a fire."

"Prepare for surgery immediately."

In the operating room, under the dazzling white light, the medical team was busy in an orderly manner. Standing in front of the operating table, operating the surgical instruments with both hands steadily, suddenly, the entire operating room fell into darkness.

"Damn! Where's our backup generator?"

After a while, the nurse who ran out to inquire about the situation came back and said: "Because of the long-term use of the backup generator, the generator has also broken down..........."

This made Emily, the surgeon, feel dizzy. The operation was already halfway done, and this happened? But the patient's condition did not allow for wasting time, so she made a decision that surprised everyone: "Bring the flashlights, let's continue the operation!"

Under the light of flashlights, the operating room presents a strange scene. The outlines of medical equipment are looming, and people are everywhere, as if it is an illusion that is a mixture of reality and dreams.

In California's Central Valley.

On the outskirts of Fresno, a food processing plant stands tall. Tom, the general manager of the plant, heard the workers' report and rushed over immediately. The scene in front of him was heartbreaking. The buzzing refrigeration equipment had long stopped working. The high temperature brought by the scorching sun caused the fruits to deteriorate rapidly. The workers were busy trying to save the fruits, but a disgusting smell of corruption could still be smelled in the air.

Tom felt dizzy, he knew that this meant that another batch of products worth hundreds of thousands of dollars would be scrapped. He immediately called the power supply company, but the company told Tom that in dry, hot and windy weather conditions, power lines are more likely to fail, such as short circuits or arcs, which may cause sparks to fly, and failures of wires, transformers and other facilities may cause fires. In order to prevent wildfires, the company had to take long-term power outage measures.

"This is outrageous, this is California! This is not a third world country!"

For the next few hours, the factory descended into chaos as the general manager and workers desperately tried to move what was still salvageable into small cold storage facilities powered by backup generators, but they were far from adequate.

In San Francisco.

The sun was like molten gold, pouring down into every corner of the city. The once busy intersection was now in chaos. All traffic lights were off, vehicles were shuttling back and forth in a disorderly manner, horns were honking one after another, and the air was filled with anxiety and restlessness.

Jack gripped the steering wheel tightly, while his wife Lily sat in the passenger seat, protecting her bulging belly with both hands.

"Hold on, honey, we'll be at the hospital soon."

Lily groaned in pain, her face as pale as paper. "Jack, I think... the child may not be able to wait..."

Jack drove carefully into the chaotic intersection. At this moment, an SUV coming at high speed from the left suddenly came into their sight.

"Bang--" The harsh sound of metal collision resounded throughout the intersection.

Soon, more vehicles were involved in the chaos. Braking sounds, crashing sounds, and screaming sounds were intertwined.

Jack climbed out of the deformed car door in a daze, his whole body in pain, but he couldn't take care of himself. His wife was unconscious, with a hideous wound on her forehead and blood flowing down her cheek. What frightened him even more was that Lily's skirt was soaked with blood.

"Help! Someone help me!" Jack shouted at the top of his lungs, his voice full of despair.

People began to gather around. Someone called the hospital, but the news from the other end of the phone made everyone despair: due to the large-scale power outage, the emergency system had been paralyzed and it might take a long time for the ambulance to arrive.

Jack knelt on the ground, holding Lily carefully, tears blurring his vision. "Hold on, honey, please..."

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