And while the DOJ is at it, it might start criminal investigations into graydavis' activties in the matter, as well.
These comapnies were driven into insolvency by consumer price caps. The market fluctuated, wholesale prices increased, and these companies were forced to sell at a lower price than it cost them.
Enron was trying to find a way to sell energy in CA and still make a profit. Shame.
In a pure free market, Enron's manipulations would not work. But they took advantage of incentives built into the system which had a perverse effect. For example, they bought price-controlled electricity from a California company, sent it over the hill, and re-sold it to California at a decontrolled price. They could only do this because out of state purchases were not controlled, while in-state purchases were.
Of course if they had bought the power from the Californian company and sold it in another state, that would have been, well, legal. And the result would have been far worse blackouts than we actually experienced. That probably would have happened if there had been deregulated markets in other states, but not in California. If I can buy power for $250 a megawatt and sell it for $350, I'm going to do it.
So Enron's manipulations most likely helped keep the lights on in California. Yes, at a price, but we probably wouldn't even be talking about Gray Davis' reelection if they hadn't played ball with the state.
Finally, if the power crisis was so great for Enron, why did they collapse with a thud heard 'round the world shortly thereafter? I'd be very curious to know how much they actually made on the power crisis -- and how they lost it all, and then some.
D
Davis purchased the power at ludicrous rates with other people's money. Davis used other people's money in a careless and reckless manner to further and personnally inrich himself. Davis is as culpabale of fraud as any other participant in this matter.
Were Davis a liscensed investment broker in California he would be vigorously prosecuted for his actions since he publically insists he knew these rates were artificially created by illegal activities.
Had Davis simply said "no" in late 2000 there would have been a few days of very minor personal inconvenience to a small number of Californians and then the traders would have backed off.
Did Enron attempt to have a role in shaping California's dysfunctional 1996 I use this date because I wasn't gov...Republican Pete Wilson was running against Klintoon rather then paying attention to Calif State business, So I can blame the Republican's, again and again... deregulation law that was written by the overwhelming Democrap controlled state legislators, but don't tell the reader this.. as it attempted to influence the Bush administration See I am going to blame the Republican's every chance I get and hopefully the public won't review all the ENRON, signed by I.GRAYOUT.DAVIS on energy policy and even helped to shape the membership That are appointed by the Gov ...uhhhh I.GRAYOUT.DAVIS uhhh again don't tell the reader this because I can blame the Republican's again... of FERC?
Honest. I ran outta gas.
I had a flat tire.
I didn't have enough money for cab fare.
My tux didn't come back from the cleaners.
An old friend came in from outta town.
Someone stole my car.
There was an earthquake,...
...a terrible flood,
...locust's.
It wasn't my fault!! *
Now, if corrupt practices IS to be differentiated from criminal acts; then, we know from history, that corrupt practices are not criminal with regards to Presidential behavior, and I would assume that the 'media' would make similar excuses for corporate behavior that mirrored Presidential practice. No, you say. Then, hypocrisy, not crime, IS the issue.
