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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Wyätt Gwyön who wrote (14556)	5/26/2004 7:13:11 PM
From: yard_man	Respond to of 110194

I don't think you can blame policy-making on the whole -- looking for a peaker after the initial energy price spikes made a great deal of economic sense -- like I said, even as an insurance policy that might never actually be used to "file a claim" -- downside risk with that initial volatility was huge (we lost a plant during some of those hot days -- you could lose your whole years margin in a matter of a few days) -- it made a great deal of sense for companies with franchises to buy them (the merchant thing got out of hand with easy money) also there was/is a great deal of uncertainty regarding the ability to do a coal plant, even if you have a franchise - -remember Kyoto? The largest part of the error wasn't the move toward gas, but the dummies that did all the merchant capacity without anticipating a possible reduction in the market volatility.