thought Enron's stock was overvalued. Not only that, they saw clear signs that"Enron may be manipulating its earnings."Within three years, Enron was bankrupt; its auditor, Arthur Anderson, dissolved;its chairman and CEO in jail. The six team members were students at CornellUniversity's business school. "It was about a six-week project, half a semester,"remembers Jay Krueger, one of the group. "It was a ratio analysis, which is prettystandard business-school fare. You know, take fifty different financial ratios, thenlay that on top of every piece of information you could find out about thecompany, the businesses, how their performance compared to other competitors."Ratio analysis by business students? Propaganda analysis by linguists? It's hard tobelieve that such basic methods could crack such hard problems. Sherlock Holmes,the iconic fictional mystery-solver, always said that it was a mistake for a detectiveto reveal his methods. He knew that people are far more impressed by thedetective's apparent ability to pluck the solution to a mystery seemingly fromnothing. "Excellent!" his sidekick, Watson, would exclaim. "Elementary," Holmeswould reply. "It is one of those instances where the reasoner can produce an effectwhich seems remarkable to his neighbour, because the latter has missed the onelittle point which is the basis of the deduction." Elementary analysis, Holmes tellsWatson, is only impressive in detective stories because of how the author presentsit. The effect depends "upon your retaining in your own hands some factors in theproblem which are never imparted to the reader." In other words, mysteries can beso entertaining because we can hardly believe it: a problem completely baffles us;we can't imagine how anyone could find a solution; suddenly, a brilliant solution isoffered and we're amazed.But, in the real world, we generally don't have the luxury of watching mysteries