Collapse of Enron Essay by capital writers

Until the fortunes of Enron Corporation began to unravel in 2001, the U.S. energy giant was termed as America's "most innovative company" by the Fortune magazine for six straight years. When Enron filed for bankruptcy in December 2001, it shocked the global financial world and became one of the largest bankruptcies in U.S. history. The event badly shook investor confidence, accelerated the southern journey of the U.S. stock market, raised serious questions about the increasing corporate influence in governmental circles and forced new legislation about greater government regulation of businesses and their financial reporting. Debate still rages among experts and the general public alike whether the event was the result of unrestrained capitalism or simply a "part of the genius of capitalism." Apart from giving a brief background of the Enron scandal, this paper focuses on the question whether the Enron bankruptcy shows the danger of unrestrained capitalism. While agreeing with the contention, the paper also examines some of the counter explanations to look at the other side of the picture.