January 31, 2002

In recent weeks, news of the Enron meltdown has dominated the business headlines. The debate has now shifted away from what caused the firms bankruptcy to what the bankruptcy means to employees, executives, pensions, Kenneth Lays Aspen houses- essence, to the more dramatic stories surrounding the demise of the "once great" company. The court battles will go on for years, and the outcome of those battles will largely help only the lawyers. But there are lessons to learned, and our interest is on the economic conditions that fostered Enrons meteoric ascent and even faster demise.

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