-----Original Message-----
From: 	"John McCormack" <jmccormack@sternstewart.com>@ENRON [mailto:IMCEANOTES-+22John+20McCormack+22+20+3Cjmccormack+40sternstewart+2Ecom+3E+40ENRON@ENRON.com] 
Sent:	Monday, July 23, 2001 6:52 PM
To:	Doris Liloy; Rich Alfano
Subject:	The Real Story behind the California Crisis

To all:

The latest paper from Jerry Taylor and Peter Van Doren of the Cato Institute is very, very good. This is an excellent analysis and even goes into market microstructure. Nevertheless, no one bats a hundred. These two overlook the critical role that long-term markets (swaps and option structures) can (and I think, must) play in creating a new market regime.

More on my criticisms later. In the mean time, check out:

http://www.cato.org/pubs/pas/pa-406es.html