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View Full Version : The Arnie - Enron connection


Pinto
Aug 19, 2003, 10:45 PM
link (http://www.commondreams.org/views03/0817-07.htm)

More important, however, Schwarzenegger still won’t respond to questions about why he was at the Peninsula Hotel in Beverly Hills two years ago where he, former Los Angeles Mayor Richard Riordan and junk bond king Michael Milken, met secretly with former Enron Chairman Kenneth Lay who was touting a plan for solving the state’s energy crisis. Other luminaries who were invited but didn’t attend the May 24, 2001 meeting included former Los Angeles Laker Earvin “Magic” Johnson and supermarket magnate Ron Burkle.

Magic Johnson??? Why would he be at such a meeting? Is he very political?

Fearing that Davis would take steps to re-regulate California’s power market that Lay spent years lobbying California lawmakers to open up to competition, Lay recruited Schwarzenegger, Riordan, Milken, and other powerful business leaders like Bruce Karatz, chief executive of home builder Kaufman & Broad; Ray Irani, chief executive of Occidental Petroleum; and Kevin Sharer, chief executive of biotech giant Amgen.

The 90-minute secret meeting Lay convened took place inside a conference room at the Peninsula Hotel. Lay, and other Enron representatives at the meeting, handed out a four-page document to Schwarzenegger, Riordan and Milken titled “Comprehensive Solution for California,” which called for an end to federal and state investigations into Enron’s role in the California energy crisis and said consumers should pay for the state’s disastrous experiment with deregulation through multibillion rate increases.

A person who attended the meeting at the Peninsula, which this reporter wrote about two years ago, said Lay invited Schwarzenegger and Riordan because the two were being courted in 2001 as GOP gubernatorial candidates. A week before the meeting, Davis signed legislation to create a state power authority that would buy, operate and build power plants in lieu of out-of-state energy companies, such as Enron, that the governor alleged was ripping off the state.

I hope that instead of a breath of fresh air in American Politics, Arnie doesn't just turn into the same old stink.

zimv20
Aug 19, 2003, 11:26 PM
Originally posted by Pinto

I hope that instead of a breath of fresh air in American Politics, Arnie doesn't just turn into the same old stink.

prepare to be disappointed.

simX
Aug 21, 2003, 10:49 PM
I would be *VERY* surprised if Davis advocated re-regulating the energy market. But it's high time that that does happen. Deregulation accomplishes nothing when we're talking about a basic need for all the people of a state. Deregulation was foolish of Pete Wilson to pioneer, and unfortunately, Gray Davis got the brunt of the ramifications dumped onto him.

If Davis came out and said he would support re-regulating the California energy market, I would applaud him. (Of course, there are still probably better candidates who would also advocate re-regulation.)

mactastic
Aug 22, 2003, 09:19 AM
It's somewhat of a misnomer to say that California's energy system was ever deregulated. It was simply re-regulated in a way that was more beneficial to the utility companies than it was previously.

IJ Reilly
Aug 22, 2003, 11:07 AM
Originally posted by mactastic
It's somewhat of a misnomer to say that California's energy system was ever deregulated. It was simply re-regulated in a way that was more beneficial to the utility companies than it was previously.

Not to the utility companies (one of which went bankrupt), but to the energy producers and traders.

mactastic
Aug 22, 2003, 11:11 AM
Originally posted by IJ Reilly
Not to the utility companies (one of which went bankrupt), but to the energy producers and traders.

You are correct. My bad.

Desertrat
Aug 22, 2003, 01:28 PM
Seems to me that there is some sort of atmosphere in California which leads too many voters to believe that:

"It's wrong to drill for oil here, and to refine it here--but we'll use petroleum products produced elsewhere, like the Gulf of Mexico."

"It's wrong to build those polluting power plants here--but we'll use electricity from those polluting plants elsewhere."

Every now and then, that sort of attitude leads to results that are rather painful.

California is not alone with this, of course, but it seems more prevalent there.

'Rat

mactastic
Aug 22, 2003, 03:08 PM
Originally posted by Desertrat
Seems to me that there is some sort of atmosphere in California which leads too many voters to believe that:

"It's wrong to drill for oil here, and to refine it here--but we'll use petroleum products produced elsewhere, like the Gulf of Mexico."

"It's wrong to build those polluting power plants here--but we'll use electricity from those polluting plants elsewhere."

Every now and then, that sort of attitude leads to results that are rather painful.

California is not alone with this, of course, but it seems more prevalent there.

'Rat

Hey, we'd be glad to help you protect your environment too... it's just a little out of my jurisdiction at the moment.:p

Oh and just to balance things out, so does the build-sprawling-crap-everywhere crowd. (Cause painful results I mean)

IJ Reilly
Aug 22, 2003, 03:22 PM
California gets dinged for this stuff all the time, but mainly without justification. Other states are just as guilty, if not more so, of exporting their problems. Here's a good example: California motorists have seen gas pump prices shoot up nearly 30% in about the last week. Why? Because Arizona refines no gasoline of their own, so when one of the two pipelines supplying the state broke, Arizona became totally dependent on California refineries. That means we in California are paying through the nose for Arizona's problems.

Backtothemac
Aug 22, 2003, 03:28 PM
Could it be that he was going to be a spokesman for the state? With Magic there too, that could be the case do you not think?