Enron #1

Please click http://www.gladwell.com/2007/2007_01_08_a_secrets.html and read the first few pages of Malcolm Gladwell's Open Secrets. Then, answer the following questions. All answers must be posted to your blog by April 8.

1. How did Anne Beliveaux respond to Jeffrey Skilling's claim that he was "innocent of every one of these charges." What were the charges?
2. What was Daniel Petrocelli specifically asking Judge Lake to do? What was the response of the judge?
3. What is the difference between a Puzzle and a Mystery? Be as specific as possible! Please consider why Gladwell does not believe the difference to be "trivial."
4. What does Gladwell mean when he states: "Puzzles come to satisfying conclusions. Mysteries often don't."
5. Initially, what did most people think of the Enron scandal? Did they think it was a Mystery or a Puzzle? Why would it matter? What does Gladwell think?
6. Please explain Mark-to-Market Accounting.
7. Gladwell claims that: "When a company using mark-to-market accounting says it has made a profit of ten million dollars on revenues of a hundred million, then, it could mean one of two things..." Please explain the two possibilities. What did Wall Street Journal report Jonathan Weil's source want him to find out?
8. What is the connection between subprime loans and Mark-to-Market Accounting?
9. Why did Weil find Enron's financial statements "sobering?"
10. Why was James Chanos interested in Enron?
11. Who was Bethany McLean?
12. Why does Gladwell believe Watergate to be a classic puzzle?
13. Did Jonathan Weil have a Deep Throat?
14. Why was Weil concerned that the officials at Enron weren't concerned about who would win the 2000 election?
15. After considering how Weil got his information, why does Gladwell believe Enron to be a mystery?