It was such a massive complicatedly diversified company, I think it is reasonable to say if it wasn't whistleblowers we wouldn't have never realized what went wrong.

The Enron physical pipeline business still exists as Kinder Morgan as Enron sold it off because they didn't want to deal with the physical infrastructure anymore.

Everything else was just financial engineering.

Up until 2015, there was really a true cost of capital. Investors wanted to see real products, real cashflow, else you head straight to bankruptcy.

2015+ changed a lot of things. You can fraud / lie / deceive your way to success if you form a cult around it. Trump, Nikola, NFTs, Crypto, Hertz, Gamestop, AMC, Blackberry, Tilray, Sundial have all shown you can astroturf, gaslight, propagandize a subset of population to fund your fantasies in a world awash with capital and very few assets to invest.

It all started with Tesla. Everyone thought Tesla was a load of BS. But post 2018 the sentiment became Tesla will keep growing until the last short investor held their breath.

Tesla showed that classical economic value means squat when ultimately market sentiment determines the price of an asset. I with hundred of people created bots to track the CEO twitter feed to determine a stock price. And it worked to some extent. Head down to dogecoin subreddit, and you will see everyone there is praying and hoping a car manufacturing company CEO shitpost about their coin which might trigger another spike. And this time they will sell for sure. If you are in your 30s you would remember Facebook games like Barn Buddy or Farmvile. The fucked up thing is that now you have similar games where you harvest NFT game characters which are supposedly worth thousands and millions of dollar equivalent money.

I sat through the GME senate hearing and politician interviews. Even a US senate member acknowledged that what makes Tesla's valuation fair but Gamestop's valuation unfair? Based on the accounting numbers they are exactly the same thing. GME has its own meme leader a, a guy who sold his dog toys business to amazon for a billion dollar. I remember people talking up patent, innovation and charismatic leadership of Tesla. I see the same passion in GME people when they talk about GME and some they were NFT deals.

Rant over.

1. The company wasn’t really leaning into the thing where they became a meme stock when they filed for bankruptcy for some reason. They did start an at-the-market offering but that was stopped pretty quickly by the courts.

2. It did actually go up for non-meme reasons so the crazy people buying stock of a bankrupt company, or rather, the people who believed what they read on Reddit and bought the stock and didn’t sell it, we’re vindicated as the company did somewhat recover.

There was three schools of thoughts with the Hertz saga-

1. Bankrupt companies are required to buyback their shares from the market. If they force the share price to go up the company is required to buyback the stock from the market regardless of the price.

2. People expected that Hertz would get a lifeline from a hedge fund.

3. Hertz car inventory still had value. If you look at used car prices you can see this sentiment was true. They thought Hertz had plenty of good assets that was just affected by the pandemic but after the pandemic prices would go up.

So essentially, it was backed by some logic but when it comes to finance logic validity of that is subjective.

I lived in Houston during that era, and for some reason a bunch of the local energy companies dabbled in internet video and infrastructure at the time.

As you mentioned, Enron. But there's also Williams (https://en.wikipedia.org/wiki/Williams_Companies). It built one of the first live business news channels. I knew a few people who worked there, but I can't remember the name of it. Naturally, it was focused on energy. The idea was that people in the energy industry would have it on a screen next to their computers in their offices.

It worked, a bit. I saw the channel in the break rooms and lobbies of several oil and gas companies I visited at the time. But, like the Enron/Blockbuster thing, I think it was a little ahead of its time. While today a big oil company would think nothing of deploying thousands of screens to its cubicles around the world, back in those days, it was considered a crazy extravagance. Plus, everyone was still using tubes, not flat screens, so a big chunk of desk real estate would be lost at a time when offices were far more paper-reliant than they are now.

Some of the big oil and gas companies saw how the railroads were getting into telecom, and follow that, as well. (The "SP" in "Sprint" is Southern Pacific Railroad.) They figured if the railroads can run phone calls over microwave relays along their rights-of-way, the oil companies could run fiber through their pipelines. And they did.

Again, I'm most familiar with Williams. It built a huge fiber-optic network across the country by running cables through its pipelines. One of its services was called VYVX (pronounced "viv-ex"). For years and years, it was the primary way to move video between television stations at a time when satellite hookups were a lot more expensive than they are today.

I know at least part of the Williams network became what we know today as Level3. I wonder if the original network is still in use. Kind of ironic to think about all those environmentalist web sites flowing through fiber running through oil pipelines.