| When Enron bought up energy contracts and | | | | purchases and sells wheat futures and makes a |
| install them back to the state of California | | | | profit, he is doing so at the detriment of |
| for five times their face value, it one of | | | | the farmer and the end consumer because the |
| nearly bankrupt the state, it did bankrupt | | | | money he makes will either hurt another |
| one major energy supplier. Yet, Enron is | | | | trader in the future, or cause an |
| perfectly allowed to do this, based on the | | | | artificially increased price for the making |
| laws of deregulation of the energy industry | | | | of bread, meaning that you and I and everyone |
| passed in California. When California settled | | | | else the world will have to pay just a low |
| to pay Enron only 2 and a half times the | | | | more for a low for bread. Period next |
| cost, Californians were still hurt. In almost | | | | paragraphI would have to question the |
| every trade journal, they talked about | | | | viability of the commodities market in its |
| increasing energy costs in California for | | | | direct relation to its original objective |
| small, medium and large businesses. But Enron | | | | when it was formed; although, I question |
| was not the only person did this; I remember | | | | everything. I also question how anyone can |
| reading about a company in Portland OR, a | | | | consider that the stock market is really |
| steel company that had a three-year contract | | | | helping capitalize American business. When |
| to buy energy from a hydroelectric power | | | | first started, it did a great job, but today |
| plant in the Dalles in OR. Seeing that the | | | | it is a gambling casino where companies are |
| energy contracts was for a low amount of | | | | artificially maken or broken on the whims of |
| money, any open markets were paying quite | | | | institutional traders, day traders, |
| higher prices due to Enron manipulations, a | | | | computerized momentum trading strategies and |
| steel company sold its energy contracts to | | | | pure greed. (not denying that innate |
| other users and used the entire maximum | | | | characteristic). I would have to ask, how in |
| capacity of the contract for three years into | | | | the hell is that helping anyone. A company |
| the future and sold the excess.Then the CFO | | | | trading at 500 times earnings is ridiculous. |
| figured out that they can close the plants, | | | | Enron trading at 80 was a joke; Global |
| lay off the workers, pay every worker three | | | | Crossing was nuts. Kmart is a viable concept, |
| months full pay, and that they would make | | | | they sell stuff, people by stuff and Sears |
| five times the them out of profit on the | | | | could see that too. I sometimes look at the |
| energy than in making steel. Of course that | | | | reality of the situation and find there to be |
| was in the best interest of the shareholders, | | | | none. Well that's fine as long as you know |
| in the worst interest of the employees and | | | | the truth, may as well keep on trading and |
| terrible for the steel industry in America. I | | | | hit Las Vegas once in a while to, they need |
| just thought everybody should understand some | | | | your money as well. Have a great evening. |
| of the problems associated with the trading | | | | Think on it.Lance Winslow - Online Think Tank |
| of commodities. If you're next-door neighbor | | | | forum board. |