Enron, the Smartest Guys in the Room.

1229 WordsApr 7, 20125 Pages
Enron, the Smartest Guys in the Room. Enron was involved in American’s largest corporate bankruptcy. It is a story about people, and in reality it is a tragedy. Enron made their stock sky rocket through unethical means, and in reality this company kept losing money. The primary value operating among the traders was greed, money, and how to make profits under any circumstance. The traders thought that a good trader is a creative trader and the creative trader can find any arbitrage opportunity. Arbitrage opportunity was defined for the trades as the opportunity to make abnormal profits. The traders rocked the prices of electricity over the roof on the consumers’ accounts. Traders discovered that they could create artificial shortages of…show more content…
John Locke based his theory on moral rights. The people are free and equal and everybody owns their body and labor. The people own anything that was labored by them. However, people agree to form the government to protect their rights, liberty and property that would be otherwise be insecure and unsafe. In Locke’s theory Enron should have not been allowed to be involved in deregulation, because government should be there to protect people’s property and rights. If the government stayed involved in electricity power regulation in California, Enron would not have so easily ripped California of $30 billion dollars. The government should also protect people that invested in Enron, especially employees’ 401k plans. Locke’s natural rights are negative right and for Locke the negative rights do not conflict with positive rights. Those rights imply that the market should be free, which can cause inequality between people. For example large groups of society will stay poor compared to other groups that would grow even richer. Adam Smith 's view of free market derives from utilitarian agreement. The greatest benefits would be produced by free market and private property. The buyers will look for lowest price possible and producers will sell to the buyers anything they want to for the lowest possible price. The market competition would drive the self-interested individuals which would serve society. Enron created fake shortages
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