Skip to comments.Enron's Swoon Imperils Grand Experiment
Posted on 11/30/2001 2:10:53 AM PST by snopercodEdited on 04/22/2004 11:45:44 PM PDT by Jim Robinson. [history]
It was one of the great fantasies of American business: a deregulated market that would send cheaper and more reliable supplies of electricity coursing into homes and offices across the nation.
But look what's happened instead. Enron Corp., the vast energy trader at the center of the new freewheeling U.S. power markets, now faces collapse amid a blizzard of questionable financial deals. And California, the first big state to deregulate its electricity market, has watched its experiment turn into a disaster, with intermittent blackouts and retail power rates as much as 40% higher than they were a year ago.
(Excerpt) Read more at interactive.wsj.com ...
Then the federal government deregulated the energy industry, and now it's costing taxpayers/investors $billions of dollars.
What's next to deregulate, the military?
One must admit there are certain areas where government control is best.
look at california energy, they deregulated the cost
of the energy but not the price companies could charge
consumers. They elimante the unweildy regulatory body and
then impose laws which hamstring competition.
The airline bailout is an excuse. (the airlines needed some 9/11 assitaince, but the bailout was something they wanted from before and were lobying before 9/11) These mismanaged airlines
should be in chapter 11 reorganization. and if they fail
they should close. (see their stocke prices) Deregulation has been a benefit to
the consumer in the airline industry. (lower ticket costs and more choices)
The new "security" air line bill is just a pass the cost to
the consumer scam. Watch all the security agents will be
retired overweight cops, mental job wanabees, given as
political favors by puff dashel and his mob, or places you put bad
federal agents. The lawyers will have a field day
tapping into the overzelous wacko searches.
Don't believe me, next time you go to any public
place/building with security and see
who you have as asecuity agent.
Might it have something to do with the fact that Pennsylvania actually deregulated, while California tried to regulate in a different way while calling it deregulation?
Might it be because the Governor of Pennsylvania was one of those greedy pro-business/pro-oil company Republican types while in California, it wasn't?
I'm not disagreeing, but the true purpose of the "security" bill is to ensure that American citizens provide the security, not a foreigner (80% foreigners at Dulles Airport), who might harbor anti-American feelings.
Yeah, sure! How did it suceed in Pennsylvania?
Oh is that so? Last I heard the Federal Government pretty much has control over everything and everyhow in the air biz, excepting perhaps lease and capital. Maintainence and personnel standards are set by the Feds, monitored by the Feds. Air Traffic Control is Federal. Security is now Federal.
What exactly is deregulated?
Riiiiggghhhht. It was deregulation. Nothing to do with September 11th.
And those darned World Trade Center buildings just fell down by themselves, too. OH, WHEN WILL WE FEDERALIZE THE CONSTRUCTION INDUSTRY?!?! (wringing hands, gnashing teeth, rending shirt)
SHUT UP! SHUT UP! SHUT UP!
Regulation is the only answer! Facts mean nothing here! Regulation is the key! </Tuco-Bad>
Not all forms of "deregulation" are equal.
The terms of debate must include precise and accurate descriptions of the various state schemes that contributed to this mess.
The good news- overall macro economics will still kick in at some point.
People who need power will acquire it by other means as the price of centralized power floats to unacceptably high levels.
Nowhere is it written all power must be centralized to be efficiently produced and distributed.
Let's see, Enron's upper management and major shareholders were crooks, and California's socialist energy scheme collapsed.
Your hero Clinton was on the watch while Enron's management was playing number games to rip off it's other shareholders, why doesn't he get any credit?
I have actually seen other examples of this: Companies doing great under Clinton because they could cook the books all they wanted and get away with it, but when Bush took charge all the shenanigans had to stop.
I wonder how much of the miracle economy was due to just that kind of game and how much the current recession is just the chickens coming home to roost.
Well now that the energy scam companies (i.e., Enron) are under public scrutiny, that just might stay down, but don't bet the mortgage on it.
Did I ever say different?
Not much. Even if classic deregulation does exist, there are pockets of regulation that no one seems interested in. Like the Wright amendment that keeps commercial flights out of Love Field (Dallas) bound only to one of 4 contiguous states. That's absurd. Southwest Airlines would probably offer a $60 super saver 1 way from Dallas to DC or Boston.
Government regulation is a very bad thing.
If a scam company falters here and has to raise rates, they lose customer share to their competitors. Long term, the well run companies end up with the largest market share (because they keep their customers and they add the customers from the poorly run companies that end up having to raise their rates).
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