Different River

”You can never step in the same river twice.” –Heraclitus

May 16, 2008

High Oil Prices? Blame Enron!

Filed under: — Different River @ 4:06 pm

Two Democrats in the Senate have now found our why gas prices are so high: It’s Enron’s fault!

The article is here. The claim is that:

what lawmakers have called the “Enron loophole,” which was created in 2000 largely at the request of Enron Corp[,] … exempted electronic markets for large traders from government oversight.

The energy trading provision gives the Commodity Futures Trading Commission enhanced authority to detect and prevent manipulation in the electronic energy markets, create audit trails, require more
transparency in transactions and increase financial penalties for cases of market manipulation.

This of course, has nothing to do with why oil prices are high. And it will not cause oil prices to fall. It will just create a bunch of extra paperwork that will allow the CFTC to get a better view as it watches oil prices rise.

The senators [Carl Levin, D-MI, and Dianne Feinstein, D-CA] said the recent increase in unregulated energy trading
by speculators was partly to blame for higher oil and natural gas prices.”

This makes about as much sense as saying that parachute manufacturers are partly to blame for gravity.

The appetite of Democrats for kooky conspiracy theories should never be underestimated….

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