In May of 2001, [Ken] Lay [CEO of Enron] convened a private meeting with junk bond king Michael Milken, Los Angeles' then-Mayor Richard Riordan and Arnold Schwarzenegger, at which Lay reportedly presented his vision of solving the state's energy deregulation crisis by, absurd as it sounds, expanding deregulation. The meeting, about which the public still knows very little, may become a major issue now that Schwarzenegger is no longer just a Republican movie star..."
Here's a more thorough and analytical report on the same meeting:
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. Another bullet point in the four-page document said "Get deregulation right this time -- California needs a real electricity market, not government takeovers."
The irony of that statement is that California's flawed power market design helped Enron earn more than $500 million in one year, a tenfold increase in profits from a previous year and it's coordinated effort in manipulating the price of electricity in California, which other power companies mimicked, cost the state close to $70 billion and led to the beginning of what is now the state's $38 billion budget deficit. The power crisis forced dozens of businesses to close down or move to other states, where cheaper electricity was in abundant supply, and greatly reduced the revenue California relied heavily upon.
Milken, Lay, the recently departed Poindexter — all these white collar criminals are continually prancing around the periphery, acting as lieutenants of the Bush Wimp Mafia. And Arnold's brand name and limitless ambition will enable him to sell his soul to these devils more quickly than the other hundred-odd gubernatorial candidates.
