You're correct. I think they described this process in the documentary "Enron: The Smartest Guys in The Room" . I remember in interviewers with traders there that this was one pretty motivating factor for a lot of the corners that were cut at the company.
I'd have to agree with other statements here. As a Ph.D student myself, funding varies quite a bit with the field, the university, etc. However, you really shouldn't be worried as a graduate student. Most well-reputed universities guarantee funding for anywhere between 3 to 5 years for Ph.D students, so even if your adviser hits a rough patch, the university/department picks up the slack. Trying to get a tenure-track position in this funding climate is a different matter ;)