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Strategies & Market Trends : DAYTRADING Fundamentals -- Ignore unavailable to you. Want to Upgrade?

To: Raymond Duray who wrote (15136)	2/3/2002 8:36:08 PM
From: Jordan Levitt	Read Replies (1) \| Respond to of 18137

<<You'd really help your argument out by actually knowing something>> Funny thing, I can remember you on another board accusing the members of "being too loutish for your tastes"; "Kettle, please meet Mr. Pot" . You would do better to actually understand my argument. <<Enron was by far the biggest energy trader in the U.S. and in Europe before it blew up. It epitomized trading>> My point is that it wasn't the act of energy trading that caused the problems that you detail. Taking positions beyond their realm of available capital and taking massive "bets" is the cause of what went wrong with Enron. The situation was worsened by the ridiculous structure of the limited partnerships, with loans guaranteed by potentially unlimited amounts of ENE stock. The fact that they traded is secondary, the fact that they were dishonest, negligent and fraudulent is the primary basis of this tale. It matters little what industry this group of thieves was involved with, you are simply incorrect in your conclusion. You are attacking "traders" when you should be attacking criminal management. The bottom line on trading Raymond, is that if I trade you some of my carrots for some of your potatoes we are both better off.

To: Raymond Duray who wrote (15136)	2/4/2002 1:59:52 PM
From: gwb-trading	Read Replies (1) \| Respond to of 18137

Note that the Enron energy trading business was sold to UBS Warburg. This Energy Trading Business is still in operation and was viewed as the crown jewel even after Enron went bankrupt. The trading business was profitable. Note that energy trading is unregulated in the US and most other countries. Enron did not go broke because of losses in Energy trading or because the business was unregulated. This lack of regulation may have caused spikes in the price of energy, which only proves that energy should be traded and regulated as a commodity. The reality is that the price spikes were probably due to a limited number of market participants and a limted amount of resource that led to excessive price volatility. The way to fix this is to open the market to MORE participants (traders) and regulate it properly. Nobody can state that Enron blowing up was due to it's trading business. It was due to shady off-book partnerships that served to enrich corrupt executives that had no direct involvement in energy trading. - Greg