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Pastimes : Clown-Free Zone... sorry, no clowns allowed
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To: flatsville who wrote (54473)1/5/2001 10:33:54 AM
From: LLCF  Read Replies (1) of 436258
 
<My biggest problem with the CA ute part of the theory was that I could not see how a rate cut would solve the real problem. >

In 1998 with the LTCM problem credit spreads tightened after the cuts... I'm sure they're hoping the same thing happens here... The institutions holding the energy paper no doubt hold all sorts of paper, all of which [except the energy paper] suddenly becomes worth more helping to offset the energy paper losses.

<If the above is true, no wonder certain consumer groups want those CA utilities destroyed.>

Looks to me like big government 'cops' already took care of that! From your link:

"Traders have exploited arcane rules that govern power auctions and have thrived on panic buying by the state's electricity traffic cop"

DAK
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