The Achilles Heel of Gray Davis

Toogood Reports ^ | 3/19/02 | Patrick Mallon

[GeronL]

Can someone mail me a copy of this article, I can't afford to run my computer long enough to read all of it. And I don't mean email!

electricity too expensive?? You in Californistan??

You could just copy to a folder and read it offline, but the computer still has to be turned on.

[WOSG]

Ya, the long term contracts were on Davis' watch, but predicting markets is always dicey.

Moronic statement, as moronic as Freeman and the goons who did the contracts. They felt they had to do the long-term contracts so they could get the *average* price down. why? so they didnt have to pay it all at once. They coul dhae saved billions if they only did 2 year instead of 10-year, but the FULL COST would have shown up on Davis' watch, and that would not be good "PR".

All the analysts who know energy markets were saying that you DONT do a long-term deal then the price has spiked up like that. They all knew it was not sustainable on supply-demand basis.

What was the *right* answer? The OPPOSITE OF WHAT DAVIS DID. He waited too long to act. He failed to raise retail rates enough until the end, when he finally did that sucked the wind out of demand. He negotiated long-term rates but didnt let the utes do it 12 months earlier, which alone would have saved tens of billions all around and would have stopped the crisis. He kept demagoguing the issue when that was soooo counterproductive to getting supply online.

I could go on and on. Davis treated this as a PR problem and not the real problem of flawed regulation. The root problem was that retail rates were regulated and wholesale rates were not, so when wholesale went above retail rates, there was an unsustainable situation. in that case, you want to NIP IT IN THE BUD. He had since June2000 to do that, but dithered for 9 months because he is a political COWARD, and so ended up costing Cali billion$. He should PAY for his COWARDICE by losing his job.

Look at it this way. If a factory worker destroys millions in factory equipment, they lose their job. If a CEO loses money one year, they get canned or asked to "retire".

WHAT TO DO YOU DO WHEN YOUR GOVERNOR COSTS YOU $40 BILLION????

[Ernest_at_the_Beach]

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[hole_n_one]

Don't mind me..I'm jes trying to figure things out.

If you do, please do me a favor and ping me.......I've been at it for over 4 years now.....

[Nonstatist]

<No one will understand any of it

Maybe not, but they won't take Davis's word for it either. Many a WSJ (and Wash Post)article on the crisis has suggested that if Davis had done nothing but get out of the way, there would have been less money spent..

On the other side, a governor has no control over abortion and some of the other hot buttons Davis will push against Simon. And it will be up to Simon's people to paint him as "reasonable"

But this election will be about Davis, and Davis's unpopularity is fairly deep and lasting, IMO, unless the economy does a 180 in the next half year.. And I'm guessing thats not enough time...

[Torie]

but the FULL COST would have shown up on Davis' watch, and that would not be good "PR".

Absolutely right there. It was an off balance sheet thing. But 2 year contracts would not have cut the prices, at least in the short term. And I think it fair to say, the collapse in spot prices took everyone by surprise. There does appear to have been some price fixing and withholding of supply. Quite how all that has played out, I am not sure.

[Torie]

Yes, I agree. But then I have seen Simon perform more than you have. It is quite painful. He needs to go to boot camp, a long boot camp, before he gets near Davis in a debate.

[Ernest_at_the_Beach]

Davis mismanagement continues even now.

See his latest antics :

Click here: calpowercrisis

[WOSG]

I think Davis has been a moderate governor, and has leashed the Dems well in the legislature. The article explained how Davis has sold out to the teacher's unions and leftwing homosexual activists, all at the expense of kids and parents. And yet you call his abominable behavior "moderate"? gack! something like a 37% real increase in state spending on his watch. hardly 'moderate'.

He is avoiding tax increases. ... like with the energy crisis, he lacks the courage and vision to make the hard choices now. So you have an $18B hole he has YET to fill, and you will pay MORE later. Since he is in the pocket of the govt worker unions, he will *not* cut state spending enough to fill that huge gap, and tax increases in one form or another will come. ... HE IS CLINTON WITHOUT THE CHARISMA. .... AT BEST!!

[Torie]

How is Simon going to fill the hole?

[GeronL]

You know, I went to the grocery store wearing a Simon shirt and the checker AND the bagger both told me they were voting for him against Davis because they can't stand Davis

You'll find that when young people get jobs and see how much taxes take out they are stunned. Then they see that half the lights in the store are turned off and they can't afford their share of the light bill. That happens because the Governor 'solved' the problem.

You don't have to finish High School to get a clue... its pretty obvious.

[Nonstatist]

Torie is a moderate Republican who thinks Simon is shallow and a kneejerker. But he's convinceable. In fact, Simon will probably pull over many fence sitters like him, especially if he's going to win this thing. And I think he will (although I cant speak for Torie..)

[Ernest_at_the_Beach]

Then there is this latest piece of new regarding Davis:

Who's watching the children? : Ex-convicts abound in child care, parents unaware.(California )

[Torie]

You link seems to revert one to a list of my own posts. Am I a crisis?

[GeronL]

But 2 year contracts would not have cut the prices, at least in the short term

Government should not be involved period

[Ernest_at_the_Beach]

And from the previous link we have this:

The Department of Social Services – with the support of Gov. Gray Davis – backed child-care operators and fought for criminals' privacy.

Is this what you think a moderate governor should do?

[TerryInRiverside]

I think this writer pre-supposes that Californians are informed enough to vote in their best interests.

Believe it or not, California is largely a conservative state...

If that's so why do we have two democrat senators, a democrat governor, a democrat assembly, a democrat senate and a democrat for a dog catcher?

[WOSG]

How is Simon going to fill the hole?

Interesting choice of words - you're an Andrew Sullivan kind of guy, i presume? lol ..

HERE IS HOW SIMON WILL BALANCE THE BUDGET

[Torie]

I am not familiar with that issue. LOL. Has Simon mentioned it? Privacy as to what?

[Torie]

Ya, I like Andrew. I think you are connecting all the dots nicely. LOL.