Energy Trading and Reality Checks

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