Most of the info adapted from the documentary The Smartest Guys in the Room. and from the wikipedia entry on Enron

When Jeffery Skilling was asked by a Harvard Professor if he was smart, the alleged response was “I’m fucking smart” (Damn, thats a lot of confidence). This combination of hubris and belief in big ideas was critical to the downfall of Enron, at one time the largest and most powerful energy company in the world. Through a method known as marks to market booking, Skilling was able to record projection FUTURE revenues as current profit. (When I was making the budget for my boss, even when we book a deal for 100k, we have to spread out the money over a year to make sure everything is even). Continue reading