Arbitrage what it does mean in some cases

Discussion in 'Politics & Religion' started by harrytrader, Jun 2, 2004.


    "Burn, baby, burn. That's a beautiful thing," a trader sang about the massive fire.

    Four years after California's disastrous experiment with energy deregulation, Enron energy traders can be heard – on audiotapes obtained by CBS News – gloating and praising each other as they helped bring on, and cash-in on, the Western power crisis.

    "He just f---s California," says one Enron employee. "He steals money from California to the tune of about a million."

    "Will you rephrase that?" asks a second employee.

    "OK, he, um, he arbitrages the California market to the tune of a million bucks or two a day," replies the first.

    The tapes, from Enron's West Coast trading desk, also confirm what CBS reported years ago: that in secret deals with power producers, traders deliberately drove up prices by ordering power plants shut down.