Wut? Enron was literally shutting down energy grids in one location to spike prices in another. Way way way more to Enron story than financing to begin with.

Not everything is an Enron

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SecretDreams 2 hours ago | parent | next [-]

> Enron was literally shutting down energy grids in one location to spike prices in another.

Kind of reminds me of the current lack of supply of GPUs and ram to consumers.

	▲	infecto 2 hours ago \| parent [-]
		How? Two very different things but because we don’t like AI we make bad comparisons?

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cmiles8 2 hours ago | parent | prev [-]

Enron comparisons folks are making is about why they failed, not why they made a lot of money. They ultimately failed for reasons scarily similar to what’s going on now across the industry with special purpose vehicles and off balance sheet liabilities.

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infecto 2 hours ago | parent [-]

Just wrong. It’s a superficial comparison at best. Enron was cooking books using entities they controlled but making it look like they did not.

You could make an argument that maybe this is similar to oracle (I think?) in the com bubble financing networking gear to customers.

I still think that misses the mark since the customers using hardware are have demand for computer by their customers.

	▲	cmiles8 2 hours ago \| parent \| next [-]
		And people were really buying electricity too. The WSJ recently reported that there’s around 3 trillion in off balance sheet liabilities floating around in AI. It’s very unclear where the $3 trillion to pay those bills will come from. Nobody is saying it’s “illegal” but it was news in the WSJ as the companies using creative accounting aren’t exactly going out of their way to make sure everyone knows that this $3 trillion in liabilities exists.
	▲	mrlonglong 2 hours ago \| parent \| prev [-]
		Boots. You could cook boots but they still won't be edible.