Hi portage,
As the saying goes, no one ever lost a dime underestimating the taste of the American public. You express the corollary well, but to be more succinct, we'd say:
Rarely has anyone ever lost a buck underestimating the intelligence of the American electorate.
I was surprised the I actually found myself more or less in agreement with Krugman on this one. Lately he's seemed more or less irrelevant to the discussion of economics. But he's not bad when he's drawn a bead on the evils of a mendacious and malicious character like Ken Lay.
In keeping up the attack, I'd like to contribute this tidbit. I really, really like the way that this fellow, Raymond Plank, is thinking about his industry. The more people who realize that Ken Lay is an out and out swindler and a crook, the sooner we can get back to some level of sanity in our energy markets.
tscquote.thestreet.com
0-25-01 06:16:16 PM Apache launches tirade against gas "speculation"
HOUSTON, Oct 25 (Reuters) - Apache Corp. (APA.N) executives
took a swipe at beleaguered energy giant Enron Corp. (ENE.N) on
Thursday, accusing "speculative" natural gas traders of causing
extreme price volatility that threatened security of energy
supply in the United States at a time of national emergency.
Raymond Plank, the patriarchal and outspoken founder and
chief executive of the Houston-based oil and gas company, said
Apache wanted to contribute to U.S. energy security but found
itself thwarted by wild swings in natural gas prices.
"This debacle is the result of excessive speculation
inherent in a gas market driven by paper trades," he said in
the company's third-quarter earnings statement.
Chief Financial Officer Roger Plank, the elder Plank's son,
said price volatility had reached "absurd levels" following the
Sept. 11 attacks on the World Trade Center and the Pentagon.
"Investors and industry alike are trying to determine what
has really been going on behind the curtain of some of the most
active traders of natural gas," he said during a conference
call with analysts on third-quarter earnings.
Plank later said through an Apache spokesman that his
remark was directed at all the major marketing firms, including
Enron.
Enron, North America's biggest marketer and trader of
natural gas and electricity saw its stock plummet to six-year
lows this week amid investor concerns about its complicated
finances.
The U.S. Securities and Exchange Commission is looking into
transactions between Enron and partnerships run by Enron's
former chief financial officer, Andrew Fastow, who was replaced
this week in an effort to restore investor confidence.
Apache's President and Chief Operating Officer Steven
Farris also complained about recent gas price volatility.
"Never before have we had such unchecked short-term
speculation and trading which makes long-term investment
decisions in natural gas almost impossible," he said.
Natural gas prices rose steadily last year from just over
$2 per thousand cubic feet in January to around $10 in December
but they have fallen for most of this year, dipping briefly
below $2 in late September then moving back toward $3 this
month.
Salomon Smith Barney analyst Bob Morris said there was no
denying that natural gas had become a very volatile commodity
but that Apache seemed to be taking a lone stand among U.S.
independent oil and gas producers.
"They seem to be the only ones making as much noise about
it," he said. "As far as business planning goes, in my mind you
have to deal with it."
Apache reported that its third-quarter earnings fell to
$151.9 million, or $1.19 cents per share, from $197.3 million,
or $1.58 per share, in the same period of 2000, due to sharply
lower natural gas and crude oil prices.
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