Friday, June 20, 2008

The Enron Loophole

Cesca posts this video from Olbermann on a special loophole added to legislation during Bush 41's term that deregulated the way oil and energy futures are traded. It's complicated and a bit long, but there is a tie to McCain that warrants awareness of the issue.

The person responsible for the Enron Loophole, Wendy Gramm, is the wife of former Texas senator Phil Gramm, who is one of McCain's chief economic advisors. Further, Mrs. Gramm left her government job and went to work for Enron right before Clinton took office. You'll remember how Enron manipulated markets to triple the cost of Calfornia's energy usage, resulting in 38 rolling blackouts in 2001. McCain voted against a farm bill, which contained a provision closing the loophole.

After McCain started feeling the heat of how this issue could cost him votes, he's changed his position on the Enron Loophole, but now there appears to be other legislation that would open it up again. Given how much the Democratic leadership in both houses bent over for Bush on FISA and telcom immunity, it gives me the creeps to think how easily they'll be swayed over this.

1 comment:

Dave Adams said...

ENRON activities were criminal and it is very sadso many were wiped out by the greed of a few. It is true the loophole was created under the Bush 1 administration but; it is even sadder that the Justice Department under Clinton was so focused on Christian cults that did not contribute to the Party, that it ignored all manner of corruption from those that did
support the Democrat Party and it's candidates.
McCain voted against the Farm Bill because is was a gift basket to Commercial Farm Corporations and the Ethanol lobby that had given big donations to both Parties.
McCain has been one of the biggest oponents of pork paybacks.