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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: James C. Mc Gowan who wrote (36554)	1/31/2001 1:38:37 PM
From: IQBAL LATIF	Read Replies (1) \| Respond to of 50167

Big day for some and a small day for others, we shall see our levels, come what it may be, 3028 break is our target, even a lesser cut will be acceptable as it will show that FED is least bothered, in my opinion a greater cut will be sold more aggresively as FED concerns will be mis-represented..a smaller cut can lead us to 1338 slip and back up to 1342 a bigger cut a run to 1400 and a slip to 1342 with some more slipage and move up from that.. but we can have million permutations and all will look most likely the game is about reading ' His' mind.. Zain and Zack had an idea too they have send me this e-mail..thye brought the Californian problem in the equation.. interesting read of this report.. From: "Latif Family" <.....@hotmail.com> \| Block address \| Add to Address Book To: ilatif@yahoo.com Subject: Re: reasons of california power outages.. Date: Tue, 30 Jan 2001 23:28:41 -0000 Dad, We thought that Californian power problems will work on AG's mind, we have 'rehashed' this report from Yahoo. Hopefully, it will help you to understand that AG can give a surprise on the cuts. That is to say we can have deeper cuts. Threats: One sixth of the US economy is in danger of more power shortages, a temporary idling of business activity and an interruption of the fuel supply necessary to keep the region's vital transportation system flowing. The power blackouts interrupt business activity. The state of California accounts for roughly 13% of US Gross Domestic Product [GDP]. If power is a vital input to all of the state's economic activity, and electricity availability went to zero and stayed at that level for the entire first quarter, the level of US GDP would go down by 13%. For each day power is down, GDP would fall by -.5%. Cause of problem: The troubles facing California can be traced to the deregulation of the utility industry in 1996 and its effect on the state's two largest utilities-PG&E (PCG) and Edison International (EIX). At that point, the two California utilities were encouraged to sell their own electricity generating facilities and turn to the open market to buy the necessary power to supply to their customers. In addition, the rates the utilities could charge their customers were capped. When costs of power soared in the open market, but the utilities could not pass those increases on to customers, the utility companies started to lose money. Now, confronted with $11.5 billion in power-buying debt because regulators won't let them pass on all of their power costs to consumers, PCG and EIX are in danger of bankruptcy. The result has been a dwindling of power supplies and rolling blackouts throughout the Golden State. Solution: The Federal Government has already issued a directive that requires power generators and natural gas companies to sell to the two California utilities even though they are on the brink of bankruptcy. Since the two utility companies are no longer able to find loans to finance the purchase of power, the state has stepped in to buy it on their behalf.In an effort to do so, the state of California conducted an auction on the Internet.