Anybody heard of something called the Enron Loophole?

Question

Someone told me the real reason gas is so high is something called the Enron Loophole. What's that?

Answer 1

Yes.  It's an exemption to the regulatory powers of the commodities exchange commission, lobbied for by Enron with the help of former Texas senator Phil Gramm (who also contributed to the success of lobbying that loosened up loan credit standards that led to the current mortgage crisis).  This was under the Clinton administration, so as much as I'd like to blame Bush II, that won't wash.

It allows the kind of unregulated speculation on energy trading that led to Enron's abuses, and is considered to be the reason why oil is now trading at close to $140 a barrel, when there is insufficient shortfall in the supply to justify such high prices.

So if you want someone top blame for high gas prices, start with Phil Gramm.

Oh. BTW.  Phil Gramm has been mentioned as a possible running mate for John McCain.