by Hunter S. Thompsonfrom Rolling Stone #622, January 23, 1992[Part I] Memo From the National Affairs Desk: Sexual Harassment Thenand Now..The Ghost of Long Dong Thomas...The Road Full of ForksDear Jann,God damn, I wish you were here to enjoy this beautiful weather withme. It is autumn, as you know, and things are beginning to die. It isso wonderful to be out in the crisp fall air, with the leaves turninggold and the grass turning brown, and the warmth going out of thesunlight and big hot fires in the fireplace while Buddy rakes thelawn. We see a lot of bombs on TV because we watch it a lot more, nowthat the days get shorter and shorter, and darkness comes so soon, andall the flowers die from freezing.Oh, God! You should have been with me yesterday when I finished myham and eggs and knocked back some whiskey and picked up my WeatherbyMark V .300 Magnum and a ball of black Opium for dessert and wentoutside with a fierce kind of joy in my heart because I was Proud tobe an American on a day like this. If felt like a goddamn FootballGame, Jann -- it was like Paradise.... You remember that bliss youfelt when we powered down to the farm and whipped Stanford? Well, itfelt like That.I digress. My fits of Joy are soiled by relentless flashbacks andghosts too foul to name....Oh no, don't ask Why. You could have beenpresident, Jann, but your road was full of forks, and I think of thiswhen I see the forked horns of these wild animals who dash back andforth on the hillsides while rifles crack in the distance and fineswarthy young men with blood on their hands drive back and forth inthe dusk and mournfully call our names....O Ghost, O Lost, Lost and Gone, O Ghost, come back again.Right. and so much for autumn. The trees are diseased and theAnimals get in your way and the President is usually guilty and mostdays are too long, anyway....So never mind my poem. It was wrong fromthe start. I plagiarized it from an early work of Coleridge and thentried to put my own crude stamp on it, but I failed.So what? I didn't want to talk about *** autumn, anyway. I wasjust sitting here at dawn on a crisp Sunday morning, waiting for thefootball games to start and taking a goddamn very brief break fromthis blizzard of Character Actors and Personal Biographers and sicklyPaparazzi that hovers around me these days (they are sleeping now,thank Christ -- some even in my own bed). I was sitting here allalone, thinking, for good or ill, about the Good Old Days.We were Poor, Jann. But we were Happy. Because we knew Tricks. Wewere Smart. Not Crazy, like they said. (No. They never called us latefor dinner, eh?)Ho, ho. Laughs don't come cheap these days, do they? The only guywho seems to have any fun in public is Prince Cromwell, my shrewd andhumorless neighbor -- the one who steals sheep and beats up women,like Mike Tyson.Who knows why, Jann. Some people are too weird to figure.You have come a long way from the Bloodthirsty, Beady-eyed news Hawkthat you were in days of yore. Maybe you should try reading somethingbesides those goddamn motorcycle magazines -- or one of these daysyou'll find hair growing in your palms.Take my word for it. You can only spend so much time "on thethrottle," as it were....Then the Forces of Evil will take over.Beware....Ah, but that is a different question, for now. Who gives a ***? Weare, after all, Professionals....But our Problem is not. No. It is theProblem of Everyman. It is Everywhere. The Question is our Wa; theAnswer is our Fate.... and the story I am about to tell you ishorrible, Jann.I came suddenly awake, weeping and jabbering and laughing like aloon at the ghost on my TV set....Judge Clarence Thomas....Yes, I knewhim. But that was a long time ago. Many years, in fact, but I stillremember it vividly....Indeed, it has haunted me like a Golem, day andnight, for many years.It seemed normal enough, at the time, just another weird rainy nightout there on the high desert....What the Hell? We were younger, then.Me and the Judge. And all the others, for that matter....It was aDifferent Time. People were friendly. We trusted each other. Hell, youafford to get mixed up with wild strangers in those days -- withoutfearing for your life, or your eyes, or your organs, or all of yourmoney or even getting locked up in prison forever. There was a senseof possibility. People were not so afraid, as they are now.[Part II] Fear and Loathing in Elko: Bad Craziness in SheepCountry....Side Entrance on Queer Street....O Black, O Wild, ODarkness, Roll Over Me TonightIt was just after midnight when I first saw the sheep. I was runningabout eighty-eight or ninety miles an hour in a drenching, blindingrain on U.S. 40 between Winnemucca and Elko with one light out. I wassoaking wet from the water that was pouring in through a hole in thefront roof of the car, and my fingers were like rotten icicles on thesteering wheel.It was a moonless night and I knew I was hydroplaning, which isdangerous.... My front tires were no longer in touch with the asphaltor anything else. My center of gravity was too high. There was novisibility on the road, none at all. I could have tossed a flat rock alot farther than I could see in front of me that night though the rainand the ground fog.So what? I though. I know this road -- a straight lonely run acrossnowhere, with not many dots on the map except ghost towns and truckstops with names like Beowawe and Lovelock and Deeth andWinnemucca....Jesus! Who made this map? Only a lunatic could have come up with alist of places like this: Imlay, Valmy, Golconda, Nixon, Midas,Metropolis, Jiggs, Judasville -- all of them empty, with no gasstations, withering away in the desert like a string of old PonyExpress stations. The Federal Government owns ninety percent of thisland, and most of it is useless for anything except weapons testingand poison-gas experiments.My plan was to keep moving. Never slow down. Keep the car aimedstraight ahead through the rain like a cruise missile....I feltcomfortable. There is a sense of calm and security that comes withdriving a very fast car on an empty road at night....F*** thisthunderstorm, I thought. There is safety in speed. Nothing can touchme as long as I keep moving fast, and never mind the cops: They're allhunkered down in a truck stop or jacking off by themselves in aculvert behind some dynamite shack in the wilderness beyond thehighway....Either way, they wanted no part of me, and I wanted no partof them. Only trouble could come of it. They were probably nicepeople, and so was I -- but we were not meant for each other. Historyhad long since determined that. There is a huge body of evidence tosupport the notion that me and the police were put on this earth to doextremely different things and never to mingle professionally witheach other, except at official functions, when we all wear ties anddrink heavily and whoop it up like the natural, good-humored wild boysthat we know in our hearts that we are..These occasions are rare, butthey happen -- despite the forked tongue of fate that has put usforever on different paths....But what the hell? I can handle a wildbirthday party with cops, now and then. Or some unexpected orgy at agun show in Texas. Why not? Hell, I ran for Sheriff one time, andalmost got elected. They understand this, and I get along fine withthe smart ones.But not tonight, I thought, I sped along in the darkness. Not at 100miles an hour at midnight on a rain-slicked road in Nevada. Nobodyneeds to get involved in a high-speed chase on a filthy night likethis. It would be dumb and extremely dangerous. Nobody driving a red454 V-8 Chevrolet convertible was likely to pull over and surrenderpeacefully at the first sight of a cop car behind him. All kinds ofweird s*** might happen, from a gunfight with dope fiends to permanentinjury or death....It was a good night to stay indoors and be warm,make a fresh pot of coffee and catch up on important paperwork. Laylow and ignore these loonies. Anybody behind the wheel of a car tonightwas far too crazy to f*** with, anyway.Which was probably true. There was nobody on the road except me anda few big-rig Peterbilts running west to Reno and Sacramento by dawn.I could hear them on my nine-band Super-Scan shortwave/CB/Policeradio, which erupted now and then with outbursts of brainless speedgibberish about Big Money and Hot Crank and teenage c***s with hugetits.They were dangerous Speed Freaks, driving twenty-ton trucks thatmight cut loose and jackknife at any moment, utterly out of control.There is nothing more terrifying than suddenly meeting a jackknifedPeterbilt with no brakes coming at you sideways at sixty or seventymiles per hour on a steep mountain road at three o'clock in themorning. There is a total understanding, all at once, of how thecaptain of the Titanic must have felt when he first saw the Iceberg.And not much different from the hideous feeling that gripped me whenthe beam of my Long-Reach Super-Halogen headlights picked up whatappeared to be a massive rock slide across the highway -- right infront of me, blocking the road completely. Big white rocks and roundboulders, looming up with no warning in a fog of rising steam or swampgas....The brakes were useless, the car wandering. The rear end was comingaround. I jammed it down into Low, but it made no difference, so Istraightened it out and braced for a serious impact, a crash thatwould probably kill me. This is It, I thought. This is how it happens-- slamming into a pile of rocks at 100 miles an hour, a sudden brutaldeath in a fast red car on a moonless night in a rainstorm somewhereon the sleazy outskirts of Elko. I felt vaguely embarrassed, in thatlong pure instant before I went into the rocks. I remembered Los Lobosand that I wanted to call Maria when I got to Elko....My heart was full of joy as I took the first hit, which was oddlysoft and painless. No real shock at all. Just a sickening thud, likerunning over a body, a corpse -- or, ye f***ing gods, a crippled 200-pound sheep thrashing around in the road.Yes. These huge white lumps were not boulders. They were sheep. Deadand dying sheep. More and more of them, impossible to miss at thisspeed, piled up on each other like bodies at the battle of Shiloh. Itwas like running over wet logs. Horrible, horrible....And then I saw the man -- a leaping Human Figure in the glare of mybouncing headlight, waving his arms and yelling, trying to flag medown. I swerved to avoid hitting him, but he seemed not to see me,rushing straight into my headlights like a blind man....or a monsterfrom Mars with no pulse, covered with blood and hysterical.It looked like a small black gentleman in a London Fog raincoat,frantic to get my attention. It was so ugly that my brain refused toaccept it....Don't worry, I thought. This is only an Acid flashback.Be calm. This is not really happening.I was down to about thirty-five or thirty when I zoomed past the manin the raincoat and bashed the brains out of a struggling sheep, whichhelped to reduce my speed, as the car went airborne again, thenbounced to a shuddering stop just before I hit the smoking, overturnedhulk of what looked like a white Cadillac limousine, with people stillinside. It was a nightmare. Some fool had crashed into a herd of sheepat high speed and rolled into the desert like an eggbeater.We were able to laugh about it later, but it took a while to calmdown. What the hell? It was only an accident. The Judge had murderedsome strange animals.So what? Only a racist maniac would run sheep on the highway in athunderstorm at this hour of the night. "F*** those people!" hesnapped, as I took off toward Elko with him and his two femalecompanions tucked safely into my car, which had suffered majorcosmetic damage but nothing serious. "They'll never get away with thisNegligence!" he said. "We'll eat them alive in court. Take my word forit. We are about to become joint owners of a huge Nevada sheep ranch."Wonderful, I thought. But meanwhile we were leaving the scene of avery conspicuous wreck that was sure to be noticed by morning, and thewhole front of my car was gummed up with wool and sheep's blood. Therewas no way I could leave it parked on the street in Elko, where I'dplanned to stop for the night (maybe two or three nights, for thatmatter) to visit with some old friends who were attending a kind ofAppalachian Conference for sex-film distributors at the legendaryCommercial Hotel....Never mind that, I thought. Things have changed. I was suddenly aVictim of Tragedy -- injured and on the run, far out in the middle ofsheep country -- 1000 miles from home with car full of obviouslycriminal hitchhikers who were spattered with blood and cursing angrilyat each other as we zoomed through the blinding monsoon.Jesus, I though Who are these people?Who indeed? They seemed not to notice me. The two women fighting inthe back seat were hookers. No doubt about that. I had seen them in myheadlights as they struggled in the wreckage of the Cadillac, whichhad killed about sixty sheep. They were desperate with Fear andConfusion, crawling wildly across the sheep....One was a tall blackgirl in a white minidress...and now she was screaming at the otherone, a young blond white woman. They were both drunk. Sounds ofstruggle came from the back seat. "Get your hands off me, Bitch!" Thena voice cried out, "Help me, Judge! Help! She's killing me!"What? I thought. Judge? Then she said it again, and a horrible chillwent through me....Judge? No. That would be over the line.Unacceptable.He lunged over the back seat and whacked their heads together. "Shutup!" he screamed. "Where are your f***ing manners?"He went over the seat again. He grabbed one of them by the hair."God damn you," he screamed. "Don't embarrass this man. He saved ourlives. We owe him respect -- not this god damned squalling around likewhores."A shudder ran through me, but I gripped the wheel and staredstraight ahead, ignoring this sudden horrible freak show in my car. Ilit a cigarette, but I was not calm. Sounds of sobbing and the rippingof cloth came from the back seat. The man they called Judge hadstraightened himself out and was now resting easily in the front seat,letting out long breaths of air....The silence was terrifying: Iquickly turned up the music. It was Los Lobos again -- something about"One time One Night in America," a profoundly morbid tune about Deathand Disappointment:A lady dressed in whiteWith the man she lovedStanding along the side of their pickup truckA shot rang out in the nightJust when everything seemed rightRight. A shot. A shot rang out in the night. Just another headlinewritten down in America....Yes. There was a loaded .454 Magnumrevolver in a clearly marked oak box on the front seat, about halfwaybetween me and the Judge. He could grab it in a split second and blowmy head off."Good work, Boss," he said suddenly. " I owe you a big one, forthis. I was done for, if you hadn't come along." He chuckled. "Sure ashell, Boss, sure as hell. I was Dead Meat -- killed a lot worse thanthose goddamn stupid sheep!"Jesus! I thought. Get ready to hit the brake. This man is a Judge onthe lam with two hookers. He has no choice but to kill me, and thosetwo floozies in the back seat too. We were the only witnesses.... Thiseerie perspective made me uneasy....F*** this, I thought. These peopleare going to get me locked up. I'd be better off just pulling overright here and killing all three of them. Bang, Bang, Bang! Terminatethe scum."How far is town? the Judge asked.I jumped, and the car veered again. "Town?" I said."What town?" My arms were rigid and my voice was strange and reedy.He whacked me on the knee and laughed. "Calm down, Boss," he said."I have everything under control. We're almost home." He pointed intothe rain, where I was beginning to see the dim lights of what I knewto be Elko."Okay," he snapped. "Take a left, straight ahead." He pointed againand I slipped the car into low. There was a red and blue neon signglowing about a half-mile ahead of us, barely visible in the storm.The only words I could make out were NO and VACANCY."Slow down!" the Judge screamed. "This is it! Turn! Goddamnit,turn!" His voice had the sound of a whip cracking. I recognized thetone and did as he said, curling into the mouth of the curve with allfour wheels locked and the big engine snarling wildly in Compound Lowand the blue flames coming out of the tailpipe....It was one of thoselong perfect moments in the human driving experience that makeseverybody quiet. Where is P.J.? I thought. This would bring him to hisknees.We were sliding sideways very fast and utterly out of control andcoming up on a white steel guardrail at seventy miles an hour in athunderstorm on a deserted highway in the middle of the night.Why not? On some nights Fate will pick you up like a chicken andslam you around on the walls until your body feels like abeanbag....BOOM! BLOOD! DEATH! So long, Bubba -- You knew it would Endlike this....We stabilized and shot down the loop. The Judge seemed oddly calm ashe pointed again. "This is it," he said. "This is my place. I keep afew suites here." He nodded eagerly. "We're finally safe, Boss. We cando anything we want in this place."The sign at the gate said:ENDICOTT'S MOTELDELUXE SUITES AND WATERBEDSADULTS ONLY/NO ANIMALSThank god, I thought. It was almost too good to be true. A place todump these bastards. They were quiet now, but not for long. And I knewI couldn't handle it when these women woke up.The Endicott was a string of cheap-looking bungalows, laid out in ahorseshoe pattern around a rutted gravel driveway. There were carsparked in front of most of the units, but the slots in front of thebrightly lit places at the darker end of the horseshoe were empty."Okay," said the Judge. "We'll drop the ladies down there at oursuite, then I'll get you checked in." He nodded. "We both need somesleep, Boss -- or at least rest, if you know what I mean. S***, it'sbeen a long night."I laughed, but it sounded like the bleating of a dead man. Theadrenalin rush of the sheep crash was gone, and now I was sliding intopure Fatigue Hysteria. The Endicott "Office" was a darkened hut in themiddle of the horseshoe. We parked in front of it and then the Judgebegan hammering on the wooden front door, but there was no immediateresponse...."Wake up, goddamnit! It's me -- the Judge! Open up! Thisis Life and Death! I need help!"He stepped back and delivered a powerful kick at the door, whichrattled the glass panels and shook the whole building. " I know you'rein there," he screamed. "You can't hide! I'll kick your a** till yournose bleeds!"There was still no sign of life, and I quickly abandoned all hope.Get out of here, I thought. This is wrong. I was still in the car,half in and half out...The Judge put another fine snap-kick at a pointjust over the doorknob and uttered a sharp scream in some language Ididn't recognize. Then I heard the sound of breaking glass.I leapt back into the car and started the engine. Get away! Ithought. Never mind sleep. It's flee or die, now. People get killedfor doing this kind of s*** in Nevada. It was far over the line.Unacceptable behavior. This is why God made shotguns...I saw lights come on in the Office. Then the door swung open and Isaw the Judge leap quickly through the entrance and grapple brieflywith a small bearded man in a bathrobe, who collapsed to the floorafter the Judge gave him a few blows to the head...Then he called backto me. "Come on in, Boss," he yelled. "Meet Mister Henry."I shut off the engine and staggered up the gravel path. I felt sickand woozy, and my legs were like rubber bands.The Judge reached out to help me. I shook hands with Mr. Henry, whogave me a key and a form to fill out. "Bulls***," said the Judge."This man is my guest. He can have anything he wants. Just put it onmy bill.""Of course," said Mr. Henry. "Your bill. Yes. I have it right here."He reached under his desk and came up with a nasty-looking bundle ofadding-machine tapes and scrawled Cash/Payment memos...."You got herejust in time," he said. "We were about to notify the Police.""What?" said the Judge. "Are you nuts? I have a goddamn platinumAmerican Express card! My credit is impeccable.""Yes," said Mr. Henry. "We know that. We have total respect for you.Your signature is better than gold bullion." The Judge smiled andwhacked the flat of his hand on the counter. "You bet it is!" hesnapped. "So get out of my goddamn face! You must be crazy to f***with Me like this! You fool! Are you ready to go to court?""Please, Judge," he said. Don't do this to me. All I need is yourcard. Just let me run an imprint. That's all." He moaned and staredmore or less at the Judge, but I could see that his eyes were notfocused...."They're going to fire me," he whispered. "They want to putme in jail.""Nonsense!" the Judge snapped. "I would never let that happen. Youcan always plead." He reached out and gently gripped Mr. Henry'swrist. "Believe me, Bro," he hissed. "You have nothing to worry about.You are cool. They will never lock you up! They will Never take youaway! Not out of my courtroom!""Thank you," Mr. Henry replied. "But all I need is your card andyour signature. That's the problem: I forgot to run it when youchecked in.""So what?" the Judge barked. "I'm good for it. How much do youneed?""About $22,000," said Mr. Henry. "Probably $23,000 by now. You'vehad those suites for nineteen days with total room service.""What?" the Judge yelled. "You thieving bastards! I'll have youcrucified by American Express. You are finished in this business. Youwill never work again! Not anywhere in the world! Then he whipped Mr.Henry across the front of his face so fast that I barely saw it."Stop crying!" he said. "Get a grip on yourself! This isembarrassing!"Then he slapped the man again. "Is that all you want?" he said."Only a card? A stupid little card? A piece of plastic s***?"Mr. Henry nodded. "Yes, Judge," he whispered. "That's all. Just astupid little card."The Judge laughed and reached into his raincoat, as if to jerk out agun or at least a huge wallet. "You want a card, whoreface? Is thatit? Is that all you want? You filthy little scumbag! Here it is!"Mr. Henry cringed and whimpered. Then he reached out to accept theCard, the thing that would set him free...The Judge was still graspingaround in the lining of his raincoat. "What the f***?" he muttered."This thing has too many pockets! I can feel it, but I can't find theslit!"Mr. Henry seemed to believe him, and so did I, for a minute....Whynot? He was a judge with a platinum credit card -- a very high roller.You don't find many Judges, these days, who can handle a full caseloadin the morning and run wild like a goat in the afternoon. That is avery hard dollar, and very few can handle it....but the Judge was aSpecial Case.Suddenly he screamed and fell sideways, ripping and clawing at thelining of his raincoat. "Oh, Jesus!" he wailed. "I've lost my wallet!It's gone. I left it out there in the Limo, when we hit the f****ingsheep.""So what?" I said. "We don't need it for this. I have many plasticcards."He smiled and seemed to relax. "How many?" he said. "We might needmore than one."I woke up in the bathtub -- who knows how much later -- to the soundof the hookers shrieking next door. The New York Times had fallen inand blackened the water. For many hours I tossed and turned like acrack baby in a cold hallway. I heard thumping Rhythm & Blues --serious rock & roll, and I knew that something wild was going on inthe Judge's suites. The smell of amyl nitrate came from under thedoor. It was no use. It was impossible to sleep through this orgy ofugliness. I was getting worried. I was already a marginally legalperson, and now I was stuck with some crazy Judge who had my creditcard and owed me $23,000.I had some whiskey in the car, so I went out into the rain to getsome ice. I had to get out. As I walked past the other rooms, I lookedin people's windows and feverishly tried to figure out how to get mycredit card back. Then from behind me I heard the sound of a tow-truckwinch. The Judge's white Cadillac was being dragged to the ground. TheJudge was whooping it up with the tow-truck driver, slapping him onthe back."What the hell? It was only property damage," he laughed."Hey, Judge," I called out. "I never got my card back.""Don't worry," he said. "It's in my room -- come on."I was right behind him when he opened the door to his room, and Icaught a glimpse of a naked woman dancing. As soon as the door opened,the woman lunged for the Judge's throat. She pushed him back outsideand slammed the door in his face."Forget that credit card -- we'll get some cash," the Judge said."Let's go down to the Commercial Hotel. My friends are there and theyhave plenty of money.We stopped for a six-pack on the way. The Judge went into a sleazyliquor store that turned out to be a front for kinky marital aids. Ioffered him money for the beer, but he grabbed my whole wallet.Ten minutes later, the Judge came out with $400 worth of booze and abagful of Triple-X-Rated movies. "My buddies will like this stuff," hesaid. "And don't worry about the money, I told you I'm good for it.These guys carry serious cash."The marquee above the front door of the Commercial Hotel said:WELCOME: ADULT FILM PRESIDENTSSTUDEBAKER SOCIETYFULL ACTION CASINO/KENO IN LOUNGE"Park right her in front, said the Judge. "Don't worry. I'm wellknown in this place."Me too, but I said nothing. I have been well known at the Commercialfor many years, from the time when I was doing a lot of driving backand forth between Denver and San Francisco -- usually for Businessreasons, or for Art, and on this particular weekend I was there tomeet quietly with a few old friends and business associates from theBoard of Directors of the Adult Film Association of America. I hadbeen, after all, the Night Manager of the famous O'Farrell Theatre, inSan Francisco -- "the Carnegie Hall of Sex in America."I was the Guest of Honor, in fact -- but I saw no point in confidingthese things to the Judge, a total stranger with no PersonalIdentification, no money and a very aggressive lifestyle. We were onour way to the Commercial Hotel to borrow money from some of hisfriends in the Adult Film business.What the hell? I thought. It's only Rock & Roll. And he was, afterall, a judge of some kind....Or maybe not. For all I knew he was acriminal pimp with no fingerprints, or a wealthy black shepherd fromSpain. But it hardly mattered. He was good company (if you had a tastefor the edge work -- and I did, in those days. And so, I felt, did theJudge). He had a bent sense of fun, a quick mind and no Fear ofanything.The front door of the Commercial looked strangely busy at this hourof night in a bad rainstorm, so I veered off and drove slowly aroundthe block in low gear."There's a side entrance on Queer Street," I said to the Judge, aswe hammered into a flood of black water. He seemed agitated, whichworried me a bit."Calm down," I said. "We don't want to make a scene in this place.All we want is money.""Don't worry," he said. "I know these people. They are friends.Money is nothing. They will be happy to see me."We entered the hotel through the Casino entrance. The Judge seemedcalm and focused until we rounded the corner and came face to facewith an eleven-foot polar bear standing on its hind legs, ready topounce. The Judge turned to jelly at the sight of it. "I've had enoughof this goddamn beast," he shouted." It doesn't belong here. We shouldblow its head off."I took him by the arm "Calm down, Judge," I told him. "That's WhiteKing. He's been dead for about thirty-three years."The Judge had no use for animals. He composed himself and we swunginto the lobby, approaching the desk from behind. I hung back--it wasgetting late and the lobby was full of suspicious-looking stragglersfrom the Adult Film crowd. Private cowboy cops wearing six-shooters inopen holsters were standing around. Our entrance did not go unnoticed.The Judge looked competent, but there was something menacing in theway he swaggered up to the desk clerk and whacked the marblecountertop with both hands. The lobby was suddenly filled withtension, and I quickly moved away as the Judge began yelling andpointing at the ceiling."Don't give me that crap," he barked. "These people are my friends.They're expecting me. Just ring the goddamn room again." The deskclerk muttered something about his explicit instructions not to....Suddenly the Judge reached across the desk for the house phone."What's the number? I'll ring it myself" The clerk moved quickly. Heshoved the phone out of the Judge's grasp and simultaneously drew hisindex finger across his throat. The Judge took one look at the muscleconverging on him and changed his stance."I want to cash a check," he said calmly."A check?" the clerk said. "Sure thing, buster. I'll cash yourgoddamned check." He seized the Judge by his collar and laughed."Let's get this Bozo out of her. And put him in jail."I was moving toward the door, and suddenly the Judge was rightbehind me. "Let's go," he said. We sprinted for the car, but then theJudge stopped in his tracks. He turned and raised his fist in thedirection of the hotel. "F*** you!" he shouted. "I'm the Judge. I'llbe back, and I'll bust every one of you bastards. The next time yousee me coming, you'd better run."We jumped into the car and zoomed away into the darkness. The Judgewas acting manic. "Never mind those pimps," he said. "I'll have themall on a chain gang in forty-eight hours." He laughed and slapped meon the back. "Don't worry, Boss," he said. "I know where we're going."He squinted into the rain and opened a bottle of Royal Salute."Straight ahead," he snapped. "Take a right at the next corner. We'llgo see Leach. He owes me $24,000."I slowed down and reached for the whiskey. What the hell, I thought.Some days are weirder than others."Leach is my secret weapon," the Judge said, "but I have to watchhim. He could be violent. The cops are always after him. He lives in abalance of terror. But he has a genius for gambling. We win eight outof ten every week." He nodded solemnly. "That is four of five, Doc.That is Big. Very big. That is eighty percent of everything." He shookhis head sadly and reached for the whiskey. "It's a horrible habit.But I can't give it up. It's like having a money machine.""That's wonderful," I said. "What are you bitching about?""I'm afraid, Doc. Leach is a monster, a criminal hermit whounderstands nothing in life except point spreads. He should be lockedup and castrated.""So what?" I said. "Where does he live? We are desperate. We have nocash and no plastic. This freak is our only hope."The Judge slumped into himself, and neither one of us spoke for aminute.... "Well," he said finally. "Why not? I can handle almostanything for twenty-four big ones in a brown bag. What the fuck? Let'sdo it. If the bastard gets ugly, we'll kill him.""Come on, Judge," I said. "Get a grip on yourself. This is only agambling debt.""Sure," he replied. "That's what they all say."[Part III] Dead Meat in the Fast Lane: The Judge Runs Amok...Death ofa Poet, Blood Clots in the Revenue Stream...The Man Who Loved SexDollsWe pulled into a seedy trailer court behind the stockyards. Leachmet us at the door with red eyes and trembling hands, wearing a soiledbathrobe and carrying a half-gallon of Wild Turkey."Thank God you're home," The Judge said. "I can't tell you what kindof horrible shit has happened to me tonight....But now the worm hasturned. Now that we have cash, we will crush them all."Leach just stared. Then he took a swig of Wild Turkey. "We aredoomed," he muttered. "I was about to slit my wrists.""Nonsense," the Judge said. "We won Big. I bet the same way you did.You gave me the numbers. You even predicted the Raiders would stompDenver. Hell, it was obvious. The Raiders are unbeatable on Mondaynight."Leach tensed, then he threw his head back and uttered a high-pitchedquavering shriek. The Judge seized him. "Get a grip on yourself," hesnapped. "What's wrong?""I went sideways on the bet," Leach sobbed. "I went to that goddamnsports bar up in Jackpot with some of the guys from the shop. We wereall drinking Mescal and screaming, and I lost my head."Leach was clearly a bad drinker and a junkie for mass hysteria. "Igot drunk and bet on the Broncos," he moaned, "then I doubled up. Welost everything."A terrible silence fell on the room. Leach was weeping helplessly.The Judge seized him by the sash of his greasy leather robe andstarted jerking him around by the stomach.They ignored me and I tried to pretend it wasn't happening....It wastoo ugly. There was and ashtray on the table in front of the couch. AsI reached for it, I noticed a legal pad of what appeared to be Leach'spoems, scrawled with a red Magic Marker in some kind of primitiveverse form. There was one that caught my eye. There was somethingparticularly ugly about it. There was something repugnant in the harshslant of the handwriting. It was about pigs.I TOLD HIMIT WAS WRONGBy F.X. LeachOmaha 1968A filthy young piggot tired of his gigand begged for a transferto Texas.Police ran him downon the Outskirts of townand ripped off his Nutswith a coathanger.Everything after that was likecoming home in a cage on theback of at train fromNew Orleans on a Saturdaynightwith no money and cancer anda dead girlfriend.In the end it was no useHe died on his knees in a barnyardwith all the others watching.Res Ipsa Loquitur"They're going to kill me," Leach said. "They'll be here bymidnight. I'm doomed." He uttered another low cry and reached for theWild Turkey bottle, which had fallen over and spilled."Hang on," I said. "I'll get more."On my way to the kitchen I was jolted by the sight of a naked womanslumped awkwardly in the corner with a desperate look on her face, asif she'd been shot. Her eyes bulged and her mouth was wide open andshe appeared to be reaching out for me.I leapt back and heard laughter behind me. My first thought was thatLeach, unhinged by his gambling disaster, had finally gone over theline with his wife-beating habit and shot her in the mouth just beforewe knocked. She appeared to be crying out for help, but there was novoice.I ran into the kitchen to look for a knife thinking, that if Leachhad gone crazy enough to kill his wife, now he would have to kill me,too, since I was the only witness. Except the Judge, who lockedhimself in the bathroom.Leach appeared in the doorway holding the naked woman by the neckand hurled her across the room at me....Time stood still for an instant. The woman seemed to hover in theair, coming at me in the darkness like a body in slow motion. I wentinto a stance with the bread knife and braced for a fight to thedeath.The thing hit me and bounced softly down to the floor. It was arubber blow-up doll: one of those things with five orifices that youngstockbrokers buy in adult bookstores after the singles bars close."Meet Jennifer," he said. "She's my punching bag." He picked it upby the hair and slammed it across the room."Ho, ho," he chuckled, "no more wife beating. I'm cured, thanks toJennifer." He smiled sheepishly . "It's almost like a miracle. Thesedolls saved my marriage. They're a lot smarter than you think." Henodded gravely. "Sometimes I have to beat two at once. But it alwayscalms me down, you know what I mean?"Whoops, I thought. Welcome to the night train. "Oh, hell yes, I saidquickly. "How do the neighbors handle it?""No problem," he said. "They love me."Sure, I thought. I tried to imagine the horror of living in a muddyindustrial slum full of tin-walled trailers and trying to protect yourfamily against brain damage from knowing that every night when youlook out your kitchen window there will be a man in a leather bathrobeflogging two naked women around the room with a quart bottle of WildTurkey. Sometimes for two or three hours...It was horrible."Where is your wife?" I asked. "Is she still here?""Oh, yes." he said quickly. "She just went out for some cigarettesShe'll be back any minute." He nodded eagerly. "Oh, yes, she's veryproud of me. We're almost reconciled. She really loves these dolls."I smiled, but something about this story mad me nervous. "How manydo you have?" I asked him.[To be continued]
Monday, June 18, 2007
Hunter S. Thompson Meets Judge Clarence Thomas
Labels:
Clarence Thomas,
rolling stone
Sunday, June 17, 2007
Annual Heating Degree Days Valuable NOAA Map
This map is very valuable. Pick your area and see what the normal HDD are for the year. 95% will occur in the five winter months of November through March.
My sister Lois lives in Aspen, CO. Look at the tight bands as one goes up the mountain!
Cincinnati is at the convergence of bands also.
Cincinnati, by the way, is the "freeze-thaw" capital of the U.S. The temperature goes above and below more than any other place.
Good Book Review: Excellent Book on Justice Clarence Thomas
in NYT today.
http://www.nytimes.com/2007/06/17/books/review/Patterson-t.html?ref=review&pagewanted=all
By ORLANDO PATTERSON
Published: June 17, 2007
After all the twisted racial history of the United States Supreme Court, Clarence Thomas was confirmed by the Senate with the smallest margin of victory in more than 100 years, with little professional scrutiny and with a level of manipulative political rancor that diminished everyone directly involved. The effect on Thomas, we learn from this impeccably researched and probing biography, was to reinforce the chronic contradictions with which he has long lived.
Skip to next paragraph
SUPREME DISCOMFORT
The Divided Soul of Clarence Thomas.
By Kevin Merida and Michael A. Fletcher.
Illustrated. 422 pp. Doubleday. $26.95.
Related
First Chapter: ‘Supreme Discomfort: The Divided Soul of Clarence Thomas’ (June 17, 2007)
Enlarge This Image
Design by Abbott Miller; photographs from Bettmann/Corbis
Thus, although he seriously believes that his extremely conservative legal opinions are in the best interests of African-Americans, and yearns to be respected by them, he is arguably one of the most viscerally despised people in black America. It is incontestable that he has benefited from affirmative action at critical moments in his life, yet he denounces the policy and has persuaded himself that it played little part in his success. He berates disadvantaged people who view themselves as victims of racism and preaches an austere individualism, yet harbors self-pitying feelings of resentment and anger at his own experiences of racism. His ardent defense of states’ rights would have required him to uphold Virginia’s anti-miscegenation law, not to mention segregated education, yet he lives with a white wife in Virginia. He is said to dislike light-skinned blacks, yet he is the legal guardian of a biracial child, the son of one of his numerous poor relatives. He frequently preaches the virtues of honesty and truthfulness, yet there is now little doubt that he lied repeatedly during his confirmation hearings — not only about his pornophilia and bawdy humor but, more important, about his legal views and familiarity with cases like Roe v. Wade.
Kevin Merida and Michael A. Fletcher conducted hundreds of interviews with Thomas’s friends, relatives and colleagues for “Supreme Discomfort,” in addition to doing extensive archival research. Although Thomas refused to be interviewed, this was not a serious handicap, given his vast paper and video trail and his volubility about his feelings. The authors superbly deconstruct Thomas’s multiple narratives of critical life-events — the accounts vary depending on his audience — and it says much for their intellectual integrity that though they are clearly critical of their subject, their presentation allows readers to make their own judgments. Thomas is examined through the prism of race because, they argue, “that is the prism through which Thomas often views himself,” and their main argument is that “he is in constant struggle with his racial identity — twisting, churning, sometimes hiding from it, but never denying it, even when he’s defiant about it.”
The first third of the book assiduously assembles the shards of his life from his birth in Pin Point, Ga., to his nomination to the Supreme Court by President George H. W. Bush in 1991, and it casts new light on the social and psychological context in which Thomas fashioned himself. Pin Point, where he spent his first six years, comes as close to a scene of rural desolation as is possible in an advanced society. This is black life in the rural South at its bleakest, in which the best hope of the law-abiding is a job at the old crab-picking factory. It is in this sociological nightmare that a 6-year-old boy, by some miracle of human agency, discovers the path to survival through absorption in books. Born to a teenage mother, abandoned by his father when he was a year old, plunged into the even more frightening poverty of the Savannah ghetto, Thomas, along with his brother, was eventually rescued by his grandparents.
Thomas has made a paragon of his maternal grandfather, Myers Anderson, an illiterate man who, through superhuman effort, native intelligence and upright living, was able to provide a fair degree of security for his family. Anderson cared deeply for the downtrodden, and the hard turn in Thomas’s adult individualism cannot be attributed to him. Indeed, it turns out that the man Thomas reveres disapproved strongly of his conservative politics.
Three other important forces shaped Thomas. In addition to white racism, he suffered the color prejudice of lighter-complexioned blacks. This dimension of black life has been so played down with the rise of identity politics that it comes as a shock to find a black person of the civil rights generation who feels he was severely scarred by it. Thomas says that growing up, he was teased mercilessly because his hair, complexion and features were too “Negroid” and that his schoolyard nickname was “ABC: America’s Blackest Child.” The authors seem inclined to believe contemporaries of Thomas who claim that he exaggerates and has confused class prejudice with color prejudice, as if class prejudice were any less execrable. On this, I’m inclined to believe Thomas, although, given where he now sits, the wife he sleeps with, the child he has custody of and the company he keeps, it might be time to get over it.
But Thomas bears the scars of yet another black prejudice: not only was he too black, he was also culturally too backcountry. Coastal Georgia is one of the few areas in America where a genuinely Afro-English creole — Gullah — is used, and Thomas grew up speaking it. In Savannah he was repeatedly mocked for his “Geechee” accent and was so traumatized by this that he developed the habit of simply listening when in public. That experience, Thomas claims, helps explain his mysterious silence on the Supreme Court during oral arguments. This seems a stretch, since Thomas is now an eloquent public speaker and an engaging conversationalist who, like most educated Southerners north of home, erased his accent long ago.
Another revealing aspect of Thomas’s upbringing is his difficult relationship with women. He is now reconciled with his mother, but for much of his life he resented and disapproved of her. She, in turn, acknowledges that she preferred his more compassionate brother, who died in 2000. The event that most angered the black community was Thomas’s public rebuke of his sister for being on welfare. The person most responsible for adopting and raising him was his step-grandmother, yet it is his grandfather, who initially spurned him and had abandoned Thomas’s own mother, who gets all the credit. His first career choice was to be a Roman Catholic priest, and he actually spent a year in a seminary, presumably anticipating a vow of chastity. For all his bawdy humor, he was extremely awkward with women, and his bookishness did not help. This hints, perhaps, at one source of his later troubles.
Up to the point of Thomas’s confirmation hearings, this book is a finely drawn portrait that surpasses all previous attempts to understand him. The remainder of the work is more wide-angled. Merida and Fletcher, who are journalists at The Washington Post, take us through the tumultuous hearings, then examine Thomas’s career and personal life up to the present: his complete embrace by the extreme right (he is a friend of Rush Limbaugh’s); his performance on the court; his relationship with Antonin Scalia, an ideological ally who some people think heavily influences Thomas’s thinking; and his secluded private life. We learn interesting things about him — for example, the stark contrast between his sometimes unfeeling legal opinions and his often compassionate personal relationships; the fact that he has quietly facilitated the confirmation of very liberal black judges, often to their amazement; and that he is probably the most accessible of the justices and enjoys the admiration and abiding loyalty of his clerks.
The treatment of Thomas’s legal doctrine, however, is pedestrian. Whatever one’s reservations about his “originalist” philosophy — notoriously, he has held that beating a prisoner is not unconstitutional punishment because it would not have appeared cruel and unusual to the framers — recent evaluations of his opinions by scholars like Henry Mark Holzer and Scott Douglas Gerber indicate that they should be taken seriously. Well, by lawyers anyway. We have also gone beyond the question of “who lied” in our assessment of the hearings. Of greater import would have been a critical examination of the bruising politics behind these hearings, the way both sides manipulated Thomas and Anita Hill, and the questionable ethics and strategic blunder of the left in focusing on Thomas’s sexuality, given America’s malignant racial history on this subject, instead of on his suspect qualifications for the job.
Nonetheless, the book remains invaluable for any understanding of the court’s most controversial figure. It persuasively makes the case that “the problem of color is a mantle” Thomas “yearns to shed, even as he clings to it.” In doing so, it brilliantly illuminates not only Thomas but his turbulent times, the burden of race in 20th-century America, and one man’s painful and unsettling struggle, along with his changing nation’s, to be relieved of it.
Orlando Patterson is a professor of sociology at Harvard and the author of “The Ordeal of Integration: Progress and Resentment in America’s ‘Racial’ Crisis.”
http://www.nytimes.com/2007/06/17/books/review/Patterson-t.html?ref=review&pagewanted=all
By ORLANDO PATTERSON
Published: June 17, 2007
After all the twisted racial history of the United States Supreme Court, Clarence Thomas was confirmed by the Senate with the smallest margin of victory in more than 100 years, with little professional scrutiny and with a level of manipulative political rancor that diminished everyone directly involved. The effect on Thomas, we learn from this impeccably researched and probing biography, was to reinforce the chronic contradictions with which he has long lived.
Skip to next paragraph
SUPREME DISCOMFORT
The Divided Soul of Clarence Thomas.
By Kevin Merida and Michael A. Fletcher.
Illustrated. 422 pp. Doubleday. $26.95.
Related
First Chapter: ‘Supreme Discomfort: The Divided Soul of Clarence Thomas’ (June 17, 2007)
Enlarge This Image
Design by Abbott Miller; photographs from Bettmann/Corbis
Thus, although he seriously believes that his extremely conservative legal opinions are in the best interests of African-Americans, and yearns to be respected by them, he is arguably one of the most viscerally despised people in black America. It is incontestable that he has benefited from affirmative action at critical moments in his life, yet he denounces the policy and has persuaded himself that it played little part in his success. He berates disadvantaged people who view themselves as victims of racism and preaches an austere individualism, yet harbors self-pitying feelings of resentment and anger at his own experiences of racism. His ardent defense of states’ rights would have required him to uphold Virginia’s anti-miscegenation law, not to mention segregated education, yet he lives with a white wife in Virginia. He is said to dislike light-skinned blacks, yet he is the legal guardian of a biracial child, the son of one of his numerous poor relatives. He frequently preaches the virtues of honesty and truthfulness, yet there is now little doubt that he lied repeatedly during his confirmation hearings — not only about his pornophilia and bawdy humor but, more important, about his legal views and familiarity with cases like Roe v. Wade.
Kevin Merida and Michael A. Fletcher conducted hundreds of interviews with Thomas’s friends, relatives and colleagues for “Supreme Discomfort,” in addition to doing extensive archival research. Although Thomas refused to be interviewed, this was not a serious handicap, given his vast paper and video trail and his volubility about his feelings. The authors superbly deconstruct Thomas’s multiple narratives of critical life-events — the accounts vary depending on his audience — and it says much for their intellectual integrity that though they are clearly critical of their subject, their presentation allows readers to make their own judgments. Thomas is examined through the prism of race because, they argue, “that is the prism through which Thomas often views himself,” and their main argument is that “he is in constant struggle with his racial identity — twisting, churning, sometimes hiding from it, but never denying it, even when he’s defiant about it.”
The first third of the book assiduously assembles the shards of his life from his birth in Pin Point, Ga., to his nomination to the Supreme Court by President George H. W. Bush in 1991, and it casts new light on the social and psychological context in which Thomas fashioned himself. Pin Point, where he spent his first six years, comes as close to a scene of rural desolation as is possible in an advanced society. This is black life in the rural South at its bleakest, in which the best hope of the law-abiding is a job at the old crab-picking factory. It is in this sociological nightmare that a 6-year-old boy, by some miracle of human agency, discovers the path to survival through absorption in books. Born to a teenage mother, abandoned by his father when he was a year old, plunged into the even more frightening poverty of the Savannah ghetto, Thomas, along with his brother, was eventually rescued by his grandparents.
Thomas has made a paragon of his maternal grandfather, Myers Anderson, an illiterate man who, through superhuman effort, native intelligence and upright living, was able to provide a fair degree of security for his family. Anderson cared deeply for the downtrodden, and the hard turn in Thomas’s adult individualism cannot be attributed to him. Indeed, it turns out that the man Thomas reveres disapproved strongly of his conservative politics.
Three other important forces shaped Thomas. In addition to white racism, he suffered the color prejudice of lighter-complexioned blacks. This dimension of black life has been so played down with the rise of identity politics that it comes as a shock to find a black person of the civil rights generation who feels he was severely scarred by it. Thomas says that growing up, he was teased mercilessly because his hair, complexion and features were too “Negroid” and that his schoolyard nickname was “ABC: America’s Blackest Child.” The authors seem inclined to believe contemporaries of Thomas who claim that he exaggerates and has confused class prejudice with color prejudice, as if class prejudice were any less execrable. On this, I’m inclined to believe Thomas, although, given where he now sits, the wife he sleeps with, the child he has custody of and the company he keeps, it might be time to get over it.
But Thomas bears the scars of yet another black prejudice: not only was he too black, he was also culturally too backcountry. Coastal Georgia is one of the few areas in America where a genuinely Afro-English creole — Gullah — is used, and Thomas grew up speaking it. In Savannah he was repeatedly mocked for his “Geechee” accent and was so traumatized by this that he developed the habit of simply listening when in public. That experience, Thomas claims, helps explain his mysterious silence on the Supreme Court during oral arguments. This seems a stretch, since Thomas is now an eloquent public speaker and an engaging conversationalist who, like most educated Southerners north of home, erased his accent long ago.
Another revealing aspect of Thomas’s upbringing is his difficult relationship with women. He is now reconciled with his mother, but for much of his life he resented and disapproved of her. She, in turn, acknowledges that she preferred his more compassionate brother, who died in 2000. The event that most angered the black community was Thomas’s public rebuke of his sister for being on welfare. The person most responsible for adopting and raising him was his step-grandmother, yet it is his grandfather, who initially spurned him and had abandoned Thomas’s own mother, who gets all the credit. His first career choice was to be a Roman Catholic priest, and he actually spent a year in a seminary, presumably anticipating a vow of chastity. For all his bawdy humor, he was extremely awkward with women, and his bookishness did not help. This hints, perhaps, at one source of his later troubles.
Up to the point of Thomas’s confirmation hearings, this book is a finely drawn portrait that surpasses all previous attempts to understand him. The remainder of the work is more wide-angled. Merida and Fletcher, who are journalists at The Washington Post, take us through the tumultuous hearings, then examine Thomas’s career and personal life up to the present: his complete embrace by the extreme right (he is a friend of Rush Limbaugh’s); his performance on the court; his relationship with Antonin Scalia, an ideological ally who some people think heavily influences Thomas’s thinking; and his secluded private life. We learn interesting things about him — for example, the stark contrast between his sometimes unfeeling legal opinions and his often compassionate personal relationships; the fact that he has quietly facilitated the confirmation of very liberal black judges, often to their amazement; and that he is probably the most accessible of the justices and enjoys the admiration and abiding loyalty of his clerks.
The treatment of Thomas’s legal doctrine, however, is pedestrian. Whatever one’s reservations about his “originalist” philosophy — notoriously, he has held that beating a prisoner is not unconstitutional punishment because it would not have appeared cruel and unusual to the framers — recent evaluations of his opinions by scholars like Henry Mark Holzer and Scott Douglas Gerber indicate that they should be taken seriously. Well, by lawyers anyway. We have also gone beyond the question of “who lied” in our assessment of the hearings. Of greater import would have been a critical examination of the bruising politics behind these hearings, the way both sides manipulated Thomas and Anita Hill, and the questionable ethics and strategic blunder of the left in focusing on Thomas’s sexuality, given America’s malignant racial history on this subject, instead of on his suspect qualifications for the job.
Nonetheless, the book remains invaluable for any understanding of the court’s most controversial figure. It persuasively makes the case that “the problem of color is a mantle” Thomas “yearns to shed, even as he clings to it.” In doing so, it brilliantly illuminates not only Thomas but his turbulent times, the burden of race in 20th-century America, and one man’s painful and unsettling struggle, along with his changing nation’s, to be relieved of it.
Orlando Patterson is a professor of sociology at Harvard and the author of “The Ordeal of Integration: Progress and Resentment in America’s ‘Racial’ Crisis.”
That Cold December of 2000 -- The Effect
Saturday, June 16, 2007
Judge Cudahy and the Idiocy of Electric Deregulation
Judge Richard D. Cudahy, Judge for the Seventh Circuit Court of Appeals, [Chicago; covers Illinois, Indiana & Wisconsin] which court is known for its excellently-written, often hilarious, opinions, (e.g. Lust v. Sealy Matress) is the first and only knowledgeable person that I know of, to write unflinchingly about the idiocy of electric deregulation.
Earlier in his amazing career he was a commissioner on the Wisconsin Public Service Commission. He knows whereof he writes.
[excerpts]
Copyright (c) 1998 Yale J. on Reg.
Yale University
Summer, 1998
15 Yale J. on Reg. 427
Commentary: The Folklore of Deregulation (with Apologies to Thurman Arnold)
Richard D. Cudahy
And it celebrates the army of middlemen sustained by the folklore of deregulation--
marketers, publicists, advertisers, and the like--a new class dedicated to reinventing
venerable industries as savvy competitors.
We will see that certain endeavors--e.g., the unbundling of functions, the stranding of
costs, the passionate search for mergers, and the pervasive drumbeat of advertising--are
the indispensable ingredients of deregulation. Moreover, we will see that the process of
deregulation itself is legitimized by an army of consultants, marketers, middlemen, and
media people that give shape and meaning to the folklore of deregulation
But gone is obeisance to the idea of universal service--that everyone, wherever
located, should get adequate service at a fair price. This would be achievable only under
regulation, of course. With competition, the megalopolis is frequently and cheaply served
while the small city may have fewer flights than the space shuttle but at comparable
prices.
The ISO is one of the mythic heroes of deregulation, beholden to no one and capable
in theory of monumental feats of coordination and dispatch...
In fact, the bilateral traders accused the Poolco advocates of fabricating nonexistent
transmission problems and of introducing an unnecessary ISO to engage in, of all things,
regulation. The bilateral folks only wanted free trade betw
Retail wheeling is an arrangement devoutly sought after by large industrial
users of power. Those with an uncritical commitment to the market believe that the worst threat to their goals is any kind of slowdown [*435] that would allow the forces of regulation to
regroup and counterattack. Perhaps this perception is correct, and retail wheeling is like
the flag raised by the Marines on Iwo Jima to signal their final victory and discourage
2
counterattacks. But symbolism aside and with a view to grim reality, the rush to judgment
may be premature. The decisive importance of faith and folklore in energy matters is illustrated by the stark contrast between the treatment of natural gas twenty years ago and today. Twenty years ago natural gas was generally believed to be a precious resource in short supply. It was to be reserved by regulatory fiat for its highest use--home heating. It was
emphatically not to be used for electric generation, for heating swimming pools, or for
burning in gas logs. Now the supply of natural gas is generally believed to be
inexhaustible, with no threat of inflated prices. As an environmentally friendly
hydrocarbon, there can be no higher and better use for gas than for industrial applications
and for electric generation. By using it in combined cycle turbine generators, we have a
low-capital-cost source of power, which cancels out economies of scale in generation and
voids any argument that electricity is a natural monopoly. Thus, instead of being subject
to legislative extinction as a generation source, natural gas is to be elevated by free
market competition to a new place of honor. There has been a radical shift in natural
[*436] gas's place in the folklore, reflecting once again the manic-depressive bent of
energy thinking. As we have seen, the folklore of deregulation is imbedded in all the various schemes for competition. But that folklore is perhaps most striking in the people, activities, and
buzzwords that accompany sort. Unbundling and stranded costs are exotic features of the
process, and mergers are commonplace. All are rich ingredients these proposals.
Deregulation is a magnet for middlemen and consultants, as well as for advertising
people of every of the folklore of deregulation.
A. Middlemen, Media, and Consultants
The folklore of deregulation is part of the powerful myth of the market, with the trader
as high priest and trading as the liturgy. Again, this is perhaps best illustrated by
developments in electric power. In its early years, the electric power business was
dominated by engineers and scientists. The initial problems of the industry raised
predominantly scientific and engineering issues--e.g., [*437] whether direct or
alternating current worked best. There were also early rate problems, mostly addressed by
engineers. After the engineers came the lawyers, who were presumed to know how to
deal with government regulation, when regulation came to be a bigger concern than
which way the current flowed. If there were any cracks in the phalanx of lawyers, they
were filled by the throngs of economists pouring into a land of opportunity. The
economists temporarily eclipsed the lawyers by shrewdly inventing deregulation, thereby
depriving the lawyers of their stock in trade.
With the advent of deregulation came a whole new breed of industry figures. This was
a crowd extraordinarily comfortable in an atmosphere redolent of new angles and new
dollars. These were the marketers, traders, and brokers that composed the emerging class
empowered by the new regime of competition in an unregulated marketplace. In sober
truth, the battle cry of deregulation was not, "Eliminate the middleman!" Rather,
3
middlemen--individual and corporate--were coming out of the woodwork. The pecking
order of the new regime seemed to put those who arranged trades and made deals or who
followed futures quotations ahead of those who merely knew how to power up a gas
turbine or how to get on the good side of a utility commissioner. The less one dirtied
one's hands with wires and poles, or even rate schedules, the faster one rose, with
marketers in the lead. This new prominence of the trader is a bit like a move from mere
wheat farming to trading in wheat futures on the Chicago Board of Trade. How do you
get them back on the farm, once they've seen the wheat pit? In the folklore of
deregulation, the marketer and the trader are the leading players. In the new regime, if one needs power, one merely e-mails a marketer who has gobs of electricity in his, her, or its portfolio. Everything seems ethereal because it is virtual electricity that exists only as a blip on a computer screen and will never give one a shock. One imagines that somewhere there have to be real power plants and real transmission lines and real electricity, but one doesn't really know this for sure. All one deals with are virtual megawatts, emerging from virtual power stations onto virtual transmission lines for delivery to virtual customers, from whom payment will be received. But note this carefully: The payment is not virtual--it is in real dollars. Reality has retreated to the money part of the system.
The widespread existence of power marketers with only a computer, a fax, and a
cellular telephone lends verity to the idea that electric power has joined the yen and the
ringgit as a staple of exchange and speculation, and that the new elite of the electric
world are traders, brokers, and marketers--middlemen. To those steeped in the culture of
capitalism there is something reassuring about this. Certainly it is more modern and
enlightened to entrust the fate of the nation to traders, who understand and obey the
Invisible Hand, than to follow the lawyers into the snake pit of government regulation. In
the folklore of deregulation, the [*438] prime article of faith is the terminal ineptitude
of government. Any government is conclusively deemed part of the problem and not part
of the solution.
The better one is able to put the trading process into sophisticated garb, the better one
seems to evoke the beating heart of capitalism. Thus, the development of futures and
options or, better yet, options on futures for megawatts of electric power provides an
exhilaration that mere megawatts cannot match. In the public relations version, these
derivatives are useful for hedging and therefore contribute to the efficient management of
the power system. But we sophisticates know better. We know that these vehicles
occasionally prove useful, as in Orange County, to the informed speculator or even to the
uninformed gambler. Also of consequence is the business that these derivatives will
generate for brokerage houses and for commodity brokers, as well as for the exchanges
on which they are traded. A reform and restructuring of electric power is hardly of note
unless it provides new and exciting products for the trading floor--something to put pork
bellies in the shade.
4
The deregulation of electric power has therefore generated an impressive growth of
employment opportunities for brokers, traders, and marketers. This will more than make
up for all the linemen, electricians, and clerks laid off in the interest of efficiency.
Perhaps these unfortunates can be retrained to be useful around a trading pit. But the need
for brokers, traders, and marketers is only the beginning of the employment opportunities
springing from deregulation. Some of the most impressive of these opportunities are in
the realm of education. No one can keep track of all the seminars, conferences, courses,
colloquia, encounters, round table discussions, brown bag lunches, and apres-ski
discourses offered in the name of preparation for the New World of Deregulation. The
revenues generated by these educational efforts seem to dwarf the combined take of all
the formerly regulated industries put together. And all these industries have their own
educational programs, at times with inter-industry insights, like using power lines for
computer talk.
Many of the members of the faculties of these various courses are consultants hopeful
of finding work with one or more of the programs' students, who are company managers.
So there is a delightful reciprocity about things. It is generally true that brochures
announcing these programs proclaim the advent of deregulation as a turning point in
history roughly on a par with the discovery of America. Nonetheless, however expansive
these interpretations, there is nothing to obscure the bottom line that "the 'd' in
deregulation is for 'dollars'." I am still waiting to hear any suggestion that the new
competitive regime might have a downside. If the advent of deregulation is like any other
novelty, however, at some point there will be a reactive flood of complaints, warnings,
and bomb threats demanding the immediate end of deregulatory activity and a return to
what the sender will call sanity. [*439] Rivaling the rash of educational conferences heralding the arrival of deregulation is the deluge of new newsletters, books, and periodicals dealing in hyperbolic terms with one facet or another of a deregulated industry. These publications have a seemingly inexhaustible supply of arguably newsworthy events with which to fill their pages. Now this is not news as riveting as Monica Lewinsky or Princess Di, and it may even be thin
gruel for a dentist's waiting room. But at least the definition of "newsworthy event" is far
from confining. It includes, of course, every official action of every state utility
commission and of every relevant federal agency. But this is only the beginning. Afterdinner
speeches of the commissioners may contain important clues to impending
developments in state X or in the nation. This sort of interpretation calls for virtuosity on
the part of the newsletter author in the art of "reading the tea leaves." This is a talent for
sensing, in an apparently unambiguous declaration, a hint that just the opposite may be in
store. For example, if a regulator proclaims dramatically how ardent his or her agency has
been in furthering deregulation and waves a bunch of papers to prove it, it may really be a
signal that a huge batch of onerous new regulations is about to be issued.
The need for inside information is particularly pressing at a time when industries are
being restructured to prepare them for competition. The reason for this is that everyone is
in favor of deregulation, and it becomes increasingly important to tell those that are really
5
for competition from those who merely fear that a negative stance will jeopardize their
consulting contracts. There are few in industry, government, or academia who have gone
on record as opposing deregulation. Even the managements of the highest cost and most
inefficient regulated utilities declare that they are delighted to be stripped of their
monopoly. They like to give the impression that their newly proclaimed desire to trash
their monopolistic past and to seek entrepreneurial opportunity really was hidden in their
secret hearts all along. And no politician has been rash enough to suggest that
competition will be bad for the consumer and for the environment, even though his past
campaigns have always been generously supported by utilities with a monopoly
franchise. It is therefore important for the purveyors of inside information to be able to
report not only what is said publicly but also with whom the speaker had lunch before the
talk, or with whom he shot grouse in Scotland, not to mention miscellaneous pillow talk.
There is also a heart-warming rapport among, first, publications following industry
news; second, conferences and seminars at which the speakers make news; and, third,
consultants seeking to make a name for themselves as deregulation gurus. This
combination can work beautifully, with a newsletter sponsoring a conference, at which a
consultant can speak and have his views reported in the newsletter, wherein they will be
read by numerous potential clients. A government official seeking lucrative employment
in private industry can be a useful addition to this mix. [*440]
6
B. Advertising
Further, it is certainly not a revelation that deregulation has brought unimaginable
prosperity to people in advertising. We will soon be listening to electricity commercials.
Along this line, ads plugging as exceptionally reliable an "Old Faithful" brand of electric
power (filmed in Yellowstone Park, of course) are probably not far off. We can also look
forward to "green" promotions, where fly fishermen and Smokey the Bear will be
featured in 30 second spots recommending current generated by windmills or flowing
from a solar panel. Negative ads may showcase a mushroom cloud floating up from an
errant nuclear generator. We have as a model, of course, the virtually unintelligible television pitches of long distance telephone companies. One features ten minutes of free calling a day to American Samoa, while another explains a new procedure for making
.
C. Unbundling, Stranded Costs, and Mergers
Three issues that have been the subjects of many conferences and seminars, and which
arise in many deregulatory contexts, are the questions of unbundling, stranded costs, and
mergers. A short word on unbundling will suffice. It is not the forced separation of lovers
wrapped in intimate embrace; it is the forced separation, in the interest of competition, of
utility functions and services formerly wrapped in anticompetitive embrace.
Stranded costs refer to all the most harebrained mistakes made by regulated utilities,
which had duly received regulatory blessing, but which in the new order are condemned
to oblivion by competition. In the electric power industry, very [*441] expensive
nuclear plants are prominent on the list of stranded assets. The burial costs of such illstarred
undertakings are high, and there have been various plans for their payment by
some category of hapless customers. Unless the customers can be forced to pay, the
utilities may be driven into bankruptcy. It is therefore not surprising that many of these
monopolies asked nothing of the plans stripping them of their franchises except that their
stranded costs--the "funeral expenses" of their stranded assets--be somehow paid by their
customers. This position is not noble, but it is surely practical. Some of the most
apparently fanatical deregulators have adopted a mirror-image stance: Regulated
monopoly must be destroyed root and branch, but, almost incidentally (wink and nod),
the customers should pick up the tab for stranded costs. In fact, this is the new
"deregulatory compact."
Another favorite subject of conferences and of economists' theorizing is industry
concentration, mergers, and the like. As industries deregulate, their constituent companies
rush into one another's arms, forming ever more gigantic firms to compete in a much
friendlier market. These surges of corporate love at first sight give rise to the aphorism
(duly noted in the folklore): "Nothing is certain about deregulation except the mergers
that follow." Mergers are accomplished in the name of efficiency and perhaps (though
certainly sub silentio) in the hope of some easing of competitive pressures. The efforts of
7
the antitrust authorities to halt or slow this process are ineffectual in the face of the wild
corporate lusts unleashed by deregulation. More and more, competition in the formerly
regulated industries is carried on by a handful of behemoths of international dimensions.
And, to complicate the picture, the competitive myth that everyone covets his neighbor's
business is being tested in, for example, the telephone industry, where the anticipated
rush of long distance companies to enter local service has been notably subdued.
In the electric power industry, Herculean efforts are being made to sustain competition
against merger, vertical integration, and other hazards. Power companies vertically
disintegrate by selling off their power stations to eliminate cozy relations between
generators and distributors in their regional market and to put rival generators on a level
playing field. In line with this thinking, plants in New England are being sold to faraway
California owners and, in another transaction, to an even more distant French concern.
These deals are supposed to make sense competitively because the new owners have no
distribution or other assets in New England with which to play footsie. As in other
matters governed by the folklore of deregulation, the theoretical effectiveness of
competition is the one and only factor considered. Whether the infrastructure belongs in
foreign hands or even in absentee ownership is not a question any informed person would
ask. Whether New England regulators will have the same leverage over distant owners is
also not a permissible question. In the olden days, the only international relationships
among utilities involved First World ownership of Third World facilities--and these
arrangements frequently ended [*442] unhappily for both parties to the bargain. Now,
on the other hand, U.S. concerns own things in Britain (and elsewhere), and British
companies own things in the U.S. (and elsewhere). So far the French electric system is
not in play because it is still government-owned and, France being French, may stay that
way. International crossownership may be put to the test if electricity demand should
slacken and foreign owners seek to reduce or abandon service--pulling the infrastructure
out from under, so to speak.
Conclusion
Deregulation is a wondrous process, driven by the belief that competition is all. One of
the truly remarkable things about deregulation is its strong appeal to both the Right and
the Left. There may be some observers in the center who do not wildly applaud
deregulation, but nothing is heard from them as the plaudits come in from both ends of
the political spectrum. Conservatives love deregulation because it gets rid of the
government. Liberals seem to love it because it spells the end of hated monopolies.
Deregulation legislation is often sponsored by a vociferous liberal in partnership with a
doughty conservative. <=9> n8 In fact, judging by the debate on deregulation, it is hard
to believe that traditional regulated industries like AT&T ever had any friends. Rather,
these industries seem so cowed by the volume of demands by the Right and Left that they
be stripped of their monopoly, that they have accepted their fates, literally renounced
their regulated past, lit a candle to deregulation and its folklore, and adopted the fanatical
faith common among converts.
8
Competition is undoubtedly something, but whether it is all remains to be seen. It is
certainly a prod to efficiency and, no doubt, to innovation; but whether it can live up to
its folklore as a paradise of unlimited choice among ever-cheaper, yet always reliable,
basic services may raise nagging questions. Possibly, in some circumstances, the oldfashioned
obligation to serve may even be missed. The true believers would, of course,
be scandalized that one could entertain such a thought. In any event, whether
deregulation is a sea change or only a nudge of right rudder, it has certainly called forth a
wild abundance of musings by experts and by those aspiring to be experts. They have
launched a torrent of writings and speeches and regulations and orders and policy
statements that rival catalogues and credit card offers as a burden on the mails.
Developments in deregulation have actually appeared in front page banner headlines!
That has almost succeeded in making regulated and formerly regulated industries
exciting. At least that is the fragile reed on which this Commentary rests.
FOOTNOTES:
n1 See generally Applications of Microwave Communications, Inc., 18 F.C.C.2d 953
(1969).
n2 Back in 1973, I heard John deButts, then Chairman of the old AT&T, make a speech
at a convention of state regulators in Seattle. See John D. deButts, The Time Is Now for
the Communications Industry: Address Before the Eighty-Fifth Annual Convention of the
National Association of Regulatory Utility Commissioners, 1973 Nat'l Ass'n Reg. Util.
Commissioners Proc. 285. To an audience packed with AT&T vice presidents, he
declared that his company had fought to retain its monopoly status, but, now that
competition had been ordained, AT&T was going to compete with the best of them. See
id. at 287. Judging by its role as a defendant in a pack of antitrust suits, AT&T did
compete in a muscular way and without excessive restraint until it mutated from
regulated monopoly to telephonic free spirit.
n3 Applications of Microwave Communications, Inc., 18 F.C.C.2d at 978.
n4 Id. at 971.
n5 David Boies, Deregulation in Practice, 55 Antitrust L.J. 185, 189 (1986)
(commenting on Alfred E. Kahn, The Theory and Application of Regulation, 55 Antitrust
L.J. 177, 178-84 (1986)).
n6 Now apparently to be joined by a fourth--a Northwest-Continental combination.
n7 Abundant Power from Atom Seen, N.Y. Times, Sept. 17, 1954, at 5 (quoting Lewis
L. Strauss, Address at the Twentieth Anniversary of the National Association of Science
Writers (Sept. 16, 1954)). Mr. Strauss was the chairman of the Atomic Energy
Commission. See id.
9
n8 See, e.g., The Transition to Electric Competition Act, S. 1401, 105th Cong. (1997)
(Dale Bumpers (D.-Arkansas), Slade Gorton (D.-Washington)).
Earlier in his amazing career he was a commissioner on the Wisconsin Public Service Commission. He knows whereof he writes.
[excerpts]
Copyright (c) 1998 Yale J. on Reg.
Yale University
Summer, 1998
15 Yale J. on Reg. 427
Commentary: The Folklore of Deregulation (with Apologies to Thurman Arnold)
Richard D. Cudahy
And it celebrates the army of middlemen sustained by the folklore of deregulation--
marketers, publicists, advertisers, and the like--a new class dedicated to reinventing
venerable industries as savvy competitors.
We will see that certain endeavors--e.g., the unbundling of functions, the stranding of
costs, the passionate search for mergers, and the pervasive drumbeat of advertising--are
the indispensable ingredients of deregulation. Moreover, we will see that the process of
deregulation itself is legitimized by an army of consultants, marketers, middlemen, and
media people that give shape and meaning to the folklore of deregulation
But gone is obeisance to the idea of universal service--that everyone, wherever
located, should get adequate service at a fair price. This would be achievable only under
regulation, of course. With competition, the megalopolis is frequently and cheaply served
while the small city may have fewer flights than the space shuttle but at comparable
prices.
The ISO is one of the mythic heroes of deregulation, beholden to no one and capable
in theory of monumental feats of coordination and dispatch...
In fact, the bilateral traders accused the Poolco advocates of fabricating nonexistent
transmission problems and of introducing an unnecessary ISO to engage in, of all things,
regulation. The bilateral folks only wanted free trade betw
Retail wheeling is an arrangement devoutly sought after by large industrial
users of power. Those with an uncritical commitment to the market believe that the worst threat to their goals is any kind of slowdown [*435] that would allow the forces of regulation to
regroup and counterattack. Perhaps this perception is correct, and retail wheeling is like
the flag raised by the Marines on Iwo Jima to signal their final victory and discourage
2
counterattacks. But symbolism aside and with a view to grim reality, the rush to judgment
may be premature. The decisive importance of faith and folklore in energy matters is illustrated by the stark contrast between the treatment of natural gas twenty years ago and today. Twenty years ago natural gas was generally believed to be a precious resource in short supply. It was to be reserved by regulatory fiat for its highest use--home heating. It was
emphatically not to be used for electric generation, for heating swimming pools, or for
burning in gas logs. Now the supply of natural gas is generally believed to be
inexhaustible, with no threat of inflated prices. As an environmentally friendly
hydrocarbon, there can be no higher and better use for gas than for industrial applications
and for electric generation. By using it in combined cycle turbine generators, we have a
low-capital-cost source of power, which cancels out economies of scale in generation and
voids any argument that electricity is a natural monopoly. Thus, instead of being subject
to legislative extinction as a generation source, natural gas is to be elevated by free
market competition to a new place of honor. There has been a radical shift in natural
[*436] gas's place in the folklore, reflecting once again the manic-depressive bent of
energy thinking. As we have seen, the folklore of deregulation is imbedded in all the various schemes for competition. But that folklore is perhaps most striking in the people, activities, and
buzzwords that accompany sort. Unbundling and stranded costs are exotic features of the
process, and mergers are commonplace. All are rich ingredients these proposals.
Deregulation is a magnet for middlemen and consultants, as well as for advertising
people of every of the folklore of deregulation.
A. Middlemen, Media, and Consultants
The folklore of deregulation is part of the powerful myth of the market, with the trader
as high priest and trading as the liturgy. Again, this is perhaps best illustrated by
developments in electric power. In its early years, the electric power business was
dominated by engineers and scientists. The initial problems of the industry raised
predominantly scientific and engineering issues--e.g., [*437] whether direct or
alternating current worked best. There were also early rate problems, mostly addressed by
engineers. After the engineers came the lawyers, who were presumed to know how to
deal with government regulation, when regulation came to be a bigger concern than
which way the current flowed. If there were any cracks in the phalanx of lawyers, they
were filled by the throngs of economists pouring into a land of opportunity. The
economists temporarily eclipsed the lawyers by shrewdly inventing deregulation, thereby
depriving the lawyers of their stock in trade.
With the advent of deregulation came a whole new breed of industry figures. This was
a crowd extraordinarily comfortable in an atmosphere redolent of new angles and new
dollars. These were the marketers, traders, and brokers that composed the emerging class
empowered by the new regime of competition in an unregulated marketplace. In sober
truth, the battle cry of deregulation was not, "Eliminate the middleman!" Rather,
3
middlemen--individual and corporate--were coming out of the woodwork. The pecking
order of the new regime seemed to put those who arranged trades and made deals or who
followed futures quotations ahead of those who merely knew how to power up a gas
turbine or how to get on the good side of a utility commissioner. The less one dirtied
one's hands with wires and poles, or even rate schedules, the faster one rose, with
marketers in the lead. This new prominence of the trader is a bit like a move from mere
wheat farming to trading in wheat futures on the Chicago Board of Trade. How do you
get them back on the farm, once they've seen the wheat pit? In the folklore of
deregulation, the marketer and the trader are the leading players. In the new regime, if one needs power, one merely e-mails a marketer who has gobs of electricity in his, her, or its portfolio. Everything seems ethereal because it is virtual electricity that exists only as a blip on a computer screen and will never give one a shock. One imagines that somewhere there have to be real power plants and real transmission lines and real electricity, but one doesn't really know this for sure. All one deals with are virtual megawatts, emerging from virtual power stations onto virtual transmission lines for delivery to virtual customers, from whom payment will be received. But note this carefully: The payment is not virtual--it is in real dollars. Reality has retreated to the money part of the system.
The widespread existence of power marketers with only a computer, a fax, and a
cellular telephone lends verity to the idea that electric power has joined the yen and the
ringgit as a staple of exchange and speculation, and that the new elite of the electric
world are traders, brokers, and marketers--middlemen. To those steeped in the culture of
capitalism there is something reassuring about this. Certainly it is more modern and
enlightened to entrust the fate of the nation to traders, who understand and obey the
Invisible Hand, than to follow the lawyers into the snake pit of government regulation. In
the folklore of deregulation, the [*438] prime article of faith is the terminal ineptitude
of government. Any government is conclusively deemed part of the problem and not part
of the solution.
The better one is able to put the trading process into sophisticated garb, the better one
seems to evoke the beating heart of capitalism. Thus, the development of futures and
options or, better yet, options on futures for megawatts of electric power provides an
exhilaration that mere megawatts cannot match. In the public relations version, these
derivatives are useful for hedging and therefore contribute to the efficient management of
the power system. But we sophisticates know better. We know that these vehicles
occasionally prove useful, as in Orange County, to the informed speculator or even to the
uninformed gambler. Also of consequence is the business that these derivatives will
generate for brokerage houses and for commodity brokers, as well as for the exchanges
on which they are traded. A reform and restructuring of electric power is hardly of note
unless it provides new and exciting products for the trading floor--something to put pork
bellies in the shade.
4
The deregulation of electric power has therefore generated an impressive growth of
employment opportunities for brokers, traders, and marketers. This will more than make
up for all the linemen, electricians, and clerks laid off in the interest of efficiency.
Perhaps these unfortunates can be retrained to be useful around a trading pit. But the need
for brokers, traders, and marketers is only the beginning of the employment opportunities
springing from deregulation. Some of the most impressive of these opportunities are in
the realm of education. No one can keep track of all the seminars, conferences, courses,
colloquia, encounters, round table discussions, brown bag lunches, and apres-ski
discourses offered in the name of preparation for the New World of Deregulation. The
revenues generated by these educational efforts seem to dwarf the combined take of all
the formerly regulated industries put together. And all these industries have their own
educational programs, at times with inter-industry insights, like using power lines for
computer talk.
Many of the members of the faculties of these various courses are consultants hopeful
of finding work with one or more of the programs' students, who are company managers.
So there is a delightful reciprocity about things. It is generally true that brochures
announcing these programs proclaim the advent of deregulation as a turning point in
history roughly on a par with the discovery of America. Nonetheless, however expansive
these interpretations, there is nothing to obscure the bottom line that "the 'd' in
deregulation is for 'dollars'." I am still waiting to hear any suggestion that the new
competitive regime might have a downside. If the advent of deregulation is like any other
novelty, however, at some point there will be a reactive flood of complaints, warnings,
and bomb threats demanding the immediate end of deregulatory activity and a return to
what the sender will call sanity. [*439] Rivaling the rash of educational conferences heralding the arrival of deregulation is the deluge of new newsletters, books, and periodicals dealing in hyperbolic terms with one facet or another of a deregulated industry. These publications have a seemingly inexhaustible supply of arguably newsworthy events with which to fill their pages. Now this is not news as riveting as Monica Lewinsky or Princess Di, and it may even be thin
gruel for a dentist's waiting room. But at least the definition of "newsworthy event" is far
from confining. It includes, of course, every official action of every state utility
commission and of every relevant federal agency. But this is only the beginning. Afterdinner
speeches of the commissioners may contain important clues to impending
developments in state X or in the nation. This sort of interpretation calls for virtuosity on
the part of the newsletter author in the art of "reading the tea leaves." This is a talent for
sensing, in an apparently unambiguous declaration, a hint that just the opposite may be in
store. For example, if a regulator proclaims dramatically how ardent his or her agency has
been in furthering deregulation and waves a bunch of papers to prove it, it may really be a
signal that a huge batch of onerous new regulations is about to be issued.
The need for inside information is particularly pressing at a time when industries are
being restructured to prepare them for competition. The reason for this is that everyone is
in favor of deregulation, and it becomes increasingly important to tell those that are really
5
for competition from those who merely fear that a negative stance will jeopardize their
consulting contracts. There are few in industry, government, or academia who have gone
on record as opposing deregulation. Even the managements of the highest cost and most
inefficient regulated utilities declare that they are delighted to be stripped of their
monopoly. They like to give the impression that their newly proclaimed desire to trash
their monopolistic past and to seek entrepreneurial opportunity really was hidden in their
secret hearts all along. And no politician has been rash enough to suggest that
competition will be bad for the consumer and for the environment, even though his past
campaigns have always been generously supported by utilities with a monopoly
franchise. It is therefore important for the purveyors of inside information to be able to
report not only what is said publicly but also with whom the speaker had lunch before the
talk, or with whom he shot grouse in Scotland, not to mention miscellaneous pillow talk.
There is also a heart-warming rapport among, first, publications following industry
news; second, conferences and seminars at which the speakers make news; and, third,
consultants seeking to make a name for themselves as deregulation gurus. This
combination can work beautifully, with a newsletter sponsoring a conference, at which a
consultant can speak and have his views reported in the newsletter, wherein they will be
read by numerous potential clients. A government official seeking lucrative employment
in private industry can be a useful addition to this mix. [*440]
6
B. Advertising
Further, it is certainly not a revelation that deregulation has brought unimaginable
prosperity to people in advertising. We will soon be listening to electricity commercials.
Along this line, ads plugging as exceptionally reliable an "Old Faithful" brand of electric
power (filmed in Yellowstone Park, of course) are probably not far off. We can also look
forward to "green" promotions, where fly fishermen and Smokey the Bear will be
featured in 30 second spots recommending current generated by windmills or flowing
from a solar panel. Negative ads may showcase a mushroom cloud floating up from an
errant nuclear generator. We have as a model, of course, the virtually unintelligible television pitches of long distance telephone companies. One features ten minutes of free calling a day to American Samoa, while another explains a new procedure for making
.
C. Unbundling, Stranded Costs, and Mergers
Three issues that have been the subjects of many conferences and seminars, and which
arise in many deregulatory contexts, are the questions of unbundling, stranded costs, and
mergers. A short word on unbundling will suffice. It is not the forced separation of lovers
wrapped in intimate embrace; it is the forced separation, in the interest of competition, of
utility functions and services formerly wrapped in anticompetitive embrace.
Stranded costs refer to all the most harebrained mistakes made by regulated utilities,
which had duly received regulatory blessing, but which in the new order are condemned
to oblivion by competition. In the electric power industry, very [*441] expensive
nuclear plants are prominent on the list of stranded assets. The burial costs of such illstarred
undertakings are high, and there have been various plans for their payment by
some category of hapless customers. Unless the customers can be forced to pay, the
utilities may be driven into bankruptcy. It is therefore not surprising that many of these
monopolies asked nothing of the plans stripping them of their franchises except that their
stranded costs--the "funeral expenses" of their stranded assets--be somehow paid by their
customers. This position is not noble, but it is surely practical. Some of the most
apparently fanatical deregulators have adopted a mirror-image stance: Regulated
monopoly must be destroyed root and branch, but, almost incidentally (wink and nod),
the customers should pick up the tab for stranded costs. In fact, this is the new
"deregulatory compact."
Another favorite subject of conferences and of economists' theorizing is industry
concentration, mergers, and the like. As industries deregulate, their constituent companies
rush into one another's arms, forming ever more gigantic firms to compete in a much
friendlier market. These surges of corporate love at first sight give rise to the aphorism
(duly noted in the folklore): "Nothing is certain about deregulation except the mergers
that follow." Mergers are accomplished in the name of efficiency and perhaps (though
certainly sub silentio) in the hope of some easing of competitive pressures. The efforts of
7
the antitrust authorities to halt or slow this process are ineffectual in the face of the wild
corporate lusts unleashed by deregulation. More and more, competition in the formerly
regulated industries is carried on by a handful of behemoths of international dimensions.
And, to complicate the picture, the competitive myth that everyone covets his neighbor's
business is being tested in, for example, the telephone industry, where the anticipated
rush of long distance companies to enter local service has been notably subdued.
In the electric power industry, Herculean efforts are being made to sustain competition
against merger, vertical integration, and other hazards. Power companies vertically
disintegrate by selling off their power stations to eliminate cozy relations between
generators and distributors in their regional market and to put rival generators on a level
playing field. In line with this thinking, plants in New England are being sold to faraway
California owners and, in another transaction, to an even more distant French concern.
These deals are supposed to make sense competitively because the new owners have no
distribution or other assets in New England with which to play footsie. As in other
matters governed by the folklore of deregulation, the theoretical effectiveness of
competition is the one and only factor considered. Whether the infrastructure belongs in
foreign hands or even in absentee ownership is not a question any informed person would
ask. Whether New England regulators will have the same leverage over distant owners is
also not a permissible question. In the olden days, the only international relationships
among utilities involved First World ownership of Third World facilities--and these
arrangements frequently ended [*442] unhappily for both parties to the bargain. Now,
on the other hand, U.S. concerns own things in Britain (and elsewhere), and British
companies own things in the U.S. (and elsewhere). So far the French electric system is
not in play because it is still government-owned and, France being French, may stay that
way. International crossownership may be put to the test if electricity demand should
slacken and foreign owners seek to reduce or abandon service--pulling the infrastructure
out from under, so to speak.
Conclusion
Deregulation is a wondrous process, driven by the belief that competition is all. One of
the truly remarkable things about deregulation is its strong appeal to both the Right and
the Left. There may be some observers in the center who do not wildly applaud
deregulation, but nothing is heard from them as the plaudits come in from both ends of
the political spectrum. Conservatives love deregulation because it gets rid of the
government. Liberals seem to love it because it spells the end of hated monopolies.
Deregulation legislation is often sponsored by a vociferous liberal in partnership with a
doughty conservative. <=9> n8 In fact, judging by the debate on deregulation, it is hard
to believe that traditional regulated industries like AT&T ever had any friends. Rather,
these industries seem so cowed by the volume of demands by the Right and Left that they
be stripped of their monopoly, that they have accepted their fates, literally renounced
their regulated past, lit a candle to deregulation and its folklore, and adopted the fanatical
faith common among converts.
8
Competition is undoubtedly something, but whether it is all remains to be seen. It is
certainly a prod to efficiency and, no doubt, to innovation; but whether it can live up to
its folklore as a paradise of unlimited choice among ever-cheaper, yet always reliable,
basic services may raise nagging questions. Possibly, in some circumstances, the oldfashioned
obligation to serve may even be missed. The true believers would, of course,
be scandalized that one could entertain such a thought. In any event, whether
deregulation is a sea change or only a nudge of right rudder, it has certainly called forth a
wild abundance of musings by experts and by those aspiring to be experts. They have
launched a torrent of writings and speeches and regulations and orders and policy
statements that rival catalogues and credit card offers as a burden on the mails.
Developments in deregulation have actually appeared in front page banner headlines!
That has almost succeeded in making regulated and formerly regulated industries
exciting. At least that is the fragile reed on which this Commentary rests.
FOOTNOTES:
n1 See generally Applications of Microwave Communications, Inc., 18 F.C.C.2d 953
(1969).
n2 Back in 1973, I heard John deButts, then Chairman of the old AT&T, make a speech
at a convention of state regulators in Seattle. See John D. deButts, The Time Is Now for
the Communications Industry: Address Before the Eighty-Fifth Annual Convention of the
National Association of Regulatory Utility Commissioners, 1973 Nat'l Ass'n Reg. Util.
Commissioners Proc. 285. To an audience packed with AT&T vice presidents, he
declared that his company had fought to retain its monopoly status, but, now that
competition had been ordained, AT&T was going to compete with the best of them. See
id. at 287. Judging by its role as a defendant in a pack of antitrust suits, AT&T did
compete in a muscular way and without excessive restraint until it mutated from
regulated monopoly to telephonic free spirit.
n3 Applications of Microwave Communications, Inc., 18 F.C.C.2d at 978.
n4 Id. at 971.
n5 David Boies, Deregulation in Practice, 55 Antitrust L.J. 185, 189 (1986)
(commenting on Alfred E. Kahn, The Theory and Application of Regulation, 55 Antitrust
L.J. 177, 178-84 (1986)).
n6 Now apparently to be joined by a fourth--a Northwest-Continental combination.
n7 Abundant Power from Atom Seen, N.Y. Times, Sept. 17, 1954, at 5 (quoting Lewis
L. Strauss, Address at the Twentieth Anniversary of the National Association of Science
Writers (Sept. 16, 1954)). Mr. Strauss was the chairman of the Atomic Energy
Commission. See id.
9
n8 See, e.g., The Transition to Electric Competition Act, S. 1401, 105th Cong. (1997)
(Dale Bumpers (D.-Arkansas), Slade Gorton (D.-Washington)).
Labels:
Deregulation of Electricity,
Judge Cudahy
Subscribe to:
Posts (Atom)
Labels
- Civil Society (478)
- Liar's Poker by Michael Lewis (342)
- Hot Air (327)
- Heating Degree Days (160)
- Good Writing (153)
- natural gas (148)
- Deregulation of Electricity (139)
- Cramer Yesterday (134)
- Paul Krugman (128)
- Masters of the Universe (102)
- baselinescenerio.com (101)
- Countrywide (95)
- madoff (88)
- tech tips (76)
- aggregation (72)
- health care (63)
- trading again (63)
- Saakashvilli (59)
- Duke Energy (58)
- Trading Natural Gas and Other Futures and Derivatives (58)
- bailout (55)
- friedman (53)
- David Brooks (52)
- e-bills (52)
- Not Hot Air (51)
- simon johnson (50)
- Home Buyer (45)
- goldman sachs. (45)
- Leverage (43)
- Bear Stearns (39)
- Gretchen Morgenson (36)
- aig (36)
- herbert (35)
- real estate (33)
- GE (29)
- derivatives (29)
- Cramer Today (28)
- confessions of a pattern day-trader (28)
- gs (28)
- 885 Greenville (27)
- etf's (27)
- brooks (26)
- CNBC Today (25)
- Crash of 1987 (24)
- Rush Limbaugh (24)
- rich (23)
- How to Read This Blog (22)
- saackashvili (22)
- crash now (21)
- Clarence Thomas (20)
- kristoff (20)
- Nocera (19)
- William F. Buckley Jr. (18)
- cohen (17)
- credit default swaps (17)
- dowd (17)
- lehman (17)
- The Big Short by Michael Lewis (16)
- citicorp (16)
- hedge funds (16)
- obama (16)
- Charlie Rose (15)
- collins (15)
- cramer last night (15)
- globe_mail (15)
- banks (14)
- dreier (14)
- flynn's oil (14)
- georgia (14)
- kristol (14)
- Banc of America (13)
- Cramer and October 8 (13)
- Gold (13)
- Jimmy Rogers (13)
- The Current Stock Market and Reporting Therein (13)
- Warren Buffett (13)
- geithner (13)
- Bill Gross (12)
- Norris (12)
- Value of Diversification (12)
- c (12)
- fifth third (12)
- stimulus plan (12)
- American Energy (11)
- Auchincloss (11)
- bill moyers (11)
- david f swensen (11)
- humor (11)
- margaret wente (11)
- nakedshorts (11)
- pattern day trader (11)
- Ah Enron (10)
- alternative investments (10)
- yale (10)
- Energy Savings for Residential Home (9)
- Paulson (9)
- aig.credit default swaps (9)
- bond funds (9)
- investment advisors (9)
- realtors(R) (9)
- toxic (9)
- Misleading CNBC Ads (8)
- Why I Was Too Busy (8)
- canada (8)
- carlos celdran (8)
- consuelo mack (8)
- dead_of_winter (8)
- fifth_third (8)
- jp morgan (8)
- larry summers (8)
- morgan stanley (8)
- rubin (8)
- wolfe (8)
- Amaranth (7)
- Barefoot Advertising (7)
- Cooling Degree Days (7)
- Glengarry (7)
- Judge Cudahy (7)
- No Hot Air smart grid (7)
- Weakening Dollar (7)
- james kwak (7)
- pogue (7)
- reflects (7)
- symmes township (7)
- what we learn when special people die (7)
- Municipality Bankruptcies (6)
- Notary Signing Agents (6)
- Private Equity (6)
- andrew ross serkin (6)
- bogle of vanguard (6)
- civil rights (6)
- fannie and freddie (6)
- gm (6)
- health (6)
- italy (6)
- keynes (6)
- mortgage brokers (6)
- stan chesley (6)
- susan boyle (6)
- volker (6)
- ; CNBC Today (5)
- Actual Laurel and Greenville (5)
- Cost Per Megawatt (5)
- Deregulation (5)
- Judith Warner (5)
- Merrill Lynch (5)
- Phil Gramm (5)
- The Dollar (5)
- auction rate securities (5)
- bonds (5)
- cramer's crash checklist 2010 (5)
- credit cards (5)
- dan gearino (5)
- dominion (5)
- dulley (5)
- high frequency trading (5)
- iou (5)
- iran (5)
- john lanchester (5)
- joseph cassano (5)
- kesselschlacht (5)
- libor (5)
- mybesttime (5)
- natural gas is not like oil (5)
- palin (5)
- philippines (5)
- sec (5)
- stanford (5)
- ted kennedy (5)
- Gail Collins (4)
- Hunter S. Thompson (4)
- Si burick (4)
- US Dollar (4)
- art cashin (4)
- blow (4)
- buffett (4)
- don marshall (4)
- dwell (4)
- economics (4)
- finances (4)
- fraud (4)
- green township (4)
- grisham (4)
- harry markopolos (4)
- heating oil (4)
- hillary (4)
- investment banks (4)
- john c bogle (4)
- pajama traders (4)
- rider fpp (4)
- soros. friedman (4)
- sotomayor (4)
- subprime meltdown (4)
- supreme court (4)
- tarp (4)
- where we live out lives (4)
- 1998 (3)
- 970 laurel (3)
- Fiscal Stimulous (3)
- Paul Newman (3)
- Reich (3)
- The Associate (3)
- Thomas Frank (3)
- What a Ride Ye Gave Thee Shareholders (3)
- ackman (3)
- bp (3)
- burry (3)
- calvin trillin (3)
- carlos slim. masters of the universe (3)
- cdo (3)
- cds's (3)
- checklist (3)
- christopher buckley (3)
- collapse (3)
- commodities (3)
- david muth (3)
- doug worple (3)
- duhigg (3)
- duke energy retail sales llc (3)
- elizabeth warren (3)
- euro (3)
- flash crash (3)
- g-20 (3)
- glendale (3)
- goolsbee (3)
- gs; Liar's Poker by Michael Lewis (3)
- gs; goldman sachs. (3)
- hank greenberg (3)
- institutional investor (3)
- insurance companies (3)
- law firms (3)
- manila (3)
- mcnees (3)
- meredith whitney (3)
- middle east (3)
- movies (3)
- new yorker (3)
- option arms (3)
- paul daugherty (3)
- procter (3)
- reagan (3)
- ritchard posner (3)
- steve martin (3)
- stimulous plan (3)
- terrorism (3)
- toqueville (3)
- trust (3)
- wendell potter (3)
- words (3)
- Bernie schaeffer (2)
- Buddy (2)
- Editor's Selection (2)
- Frank DeFord (2)
- Gasparino (2)
- George Vecsey (2)
- Geothermal (2)
- God (2)
- Greenspan (2)
- Latest Carry Trade (2)
- Railroads (2)
- Remnick (2)
- Rich.reflects (2)
- Spitzer (2)
- The Very Crux (2)
- Wachovia (2)
- Weather Futures (2)
- a heddgie (2)
- abacus (2)
- aep (2)
- andreww ross serkin (2)
- arthur nadel (2)
- auto task force (2)
- barcelona (2)
- barrons (2)
- barton (2)
- bernanke (2)
- beth smith (2)
- biden (2)
- bill black (2)
- black swan (2)
- blood pressure (2)
- bridge (2)
- brooks-Simon (2)
- bruce abel (2)
- bubbles (2)
- cheever (2)
- chris dodd (2)
- christopher walken (2)
- community reinvestment act (2)
- corporate bonds (2)
- cramer's list (2)
- crash of 1929 (2)
- crash of 2:45 p.m. (2)
- cursing mommy (2)
- daugherty (2)
- donttrythisonyourhome.blogspot.com (2)
- duk (2)
- economix (2)
- entrepreneur (2)
- eu (2)
- fasb (2)
- fast money last night (2)
- financial advisors (2)
- financial crisis inquiry commission (2)
- fool's gold (2)
- glanville (2)
- glass-steagall (2)
- guessing cramer (2)
- hal mcCoy (2)
- house of cards (2)
- hugh laury (2)
- ian frazier (2)
- imf (2)
- immelt (2)
- indymac (2)
- iolta (2)
- jamie dimon (2)
- jimmy cayne (2)
- john mack (2)
- kellerman (2)
- lobbying (2)
- loonie (2)
- magnetar (2)
- marcellus shale (2)
- marselus shale (2)
- mcCain (2)
- medicare (2)
- merton.mit (2)
- milton friedman (2)
- neil bortz (2)
- notes from natural gas country (2)
- nuclear power generation (2)
- patrick french (2)
- paumgarten (2)
- pelosi (2)
- peter bernstein (2)
- phil in the mountains of kyushu (2)
- phillip schuck (2)
- philosophy (2)
- pnc (2)
- power grid (2)
- ratigan (2)
- rebecca Worple pictures (2)
- regions financial (2)
- regulation (2)
- rick santelli (2)
- robert shiller (2)
- rolling stone (2)
- schumer (2)
- schwab (2)
- securitization (2)
- seeking alpha (2)
- shadow banking system (2)
- sir allen stanford (2)
- south ossetia (2)
- stanley fish (2)
- stated income loans (2)
- steen (2)
- stress tests (2)
- structured finance (2)
- taleb (2)
- talf (2)
- too big to fail (2)
- treasury (2)
- troubled asset recovery plan (2)
- trusts (2)
- twitter (2)
- veverka (2)
- walter noel (2)
- water (2)
- weatherization (2)
- wells fargo (2)
- whitney tilson (2)
- william cohan (2)
- world affairs (2)
- 1040 (1)
- 12 angry men (1)
- 60 minutes (1)
- Daschle (1)
- December (1)
- Detroit (1)
- Dirty tricks (1)
- Dmitry Orlov (1)
- Econned (1)
- Electricity (1)
- EnCana (1)
- February (1)
- Gold Standard (1)
- Irremedial (1)
- January (1)
- Jr. (1)
- Judith Timson (1)
- Kevin Hassett (1)
- McFadden Act (1)
- National City (1)
- Negrych (1)
- No There There (1)
- November (1)
- Peter Baker (1)
- Rob portman (1)
- September (1)
- Surowiecki (1)
- T. Boone Pickens (1)
- TWITTER DAY capers (1)
- Teddy Roosevelt (1)
- The Flash Guys (1)
- VaR (1)
- WEP (1)
- WPA (1)
- ` (1)
- aa (1)
- aaron pressman (1)
- above the law (1)
- acorn (1)
- adwords (1)
- afghanistan (1)
- africa trip (1)
- aging (1)
- ai (1)
- ajay kapur (1)
- ajit jain (1)
- aligned interest partnerships (1)
- allegheny (1)
- ambient (1)
- american electric power (1)
- anandarko (1)
- andrew j hall (1)
- andrew lo (1)
- andy redleaf (1)
- anne hathaway (1)
- annuities (1)
- apc (1)
- attorney review (1)
- ayp (1)
- ayres (1)
- bachus (1)
- barofsky (1)
- baseball (1)
- basis_of_stocks (1)
- ben stein (1)
- best line of the day (1)
- bill ayres (1)
- bill gates (1)
- bill o'reilly (1)
- bill youngclaus (1)
- blackstone group (1)
- blankfein (1)
- blodget (1)
- blodgett (1)
- bob woodward (1)
- books and entertainment (1)
- brown-kaufman (1)
- bruce harlamert (1)
- bully points (1)
- buy and hold (1)
- california (1)
- canadian banks (1)
- canadian dollar (1)
- carlyle group (1)
- carol loomis (1)
- casa batllo picture (1)
- cds.money market (1)
- charles ortel (1)
- charles taylor (1)
- chesapeake energy (1)
- chicago (1)
- china (1)
- christopher hitchens (1)
- city-data (1)
- cleaving in two (1)
- closing costs (1)
- cloud computing (1)
- cng (1)
- cobra (1)
- colin powell (1)
- collar funds (1)
- colors (1)
- columbia gas (1)
- commercial property (1)
- communitarian (1)
- conan obrien (1)
- concrete (1)
- conocophilips (1)
- consumer financial product agency (1)
- contracts (1)
- cooking (1)
- corporate law (1)
- cottage ownership (1)
- cox (1)
- creditaig.credit default swaps (1)
- daily normals (1)
- dan kucera (1)
- david corn (1)
- david einhorn (1)
- david faber (1)
- david frum (1)
- david gray (1)
- david gu (1)
- david kessler (1)
- dayton daily news (1)
- default option (1)
- deficit (1)
- discount rate mismatch (1)
- divorce (1)
- dmitri young (1)
- douthat (1)
- dov seidman (1)
- due diligence (1)
- dzhugashvili (1)
- earmarks (1)
- earthquake (1)
- edmund andrews (1)
- education (1)
- effrat (1)
- el-erian (1)
- ellen brown (1)
- emma (1)
- equities (1)
- eric holder (1)
- estate planning (1)
- estate taxes (1)
- ethics (1)
- european union (1)
- everything relates to everything (1)
- ewe reinhardt (1)
- exceptionalism (1)
- extend and pretend (1)
- ezra merkin (1)
- f (1)
- facebook fiasco (1)
- fairenergyohio.org (1)
- fault swaps (1)
- feith (1)
- financial engineering (1)
- finland (1)
- first energy (1)
- fitzgerald (1)
- fixed income (1)
- fonts (1)
- food (1)
- foreclosures (1)
- fracking (1)
- fuchs (1)
- futures chain (1)
- game face (1)
- gary kaminski (1)
- gasoline (1)
- gawande (1)
- gazprom (1)
- gerry spence (1)
- glen beck (1)
- good writing; what we learn when special people die (1)
- greek debt (1)
- gregg (1)
- gs; (1)
- gwyn morgan (1)
- hdd (1)
- heroes (1)
- hilda solis (1)
- home buyer tax credit (1)
- homes (1)
- igs (1)
- index funds (1)
- india (1)
- inflation (1)
- infrastructure (1)
- interest rate swaps (1)
- investment neighborhood concept (1)
- iphone+facebook (1)
- ireland (1)
- irs (1)
- james simons (1)
- john burns (1)
- john cassidy (1)
- john_paulson (1)
- jon stewart (1)
- jose manuel tesoro (1)
- julian epstein (1)
- kagan (1)
- karl icahn (1)
- kate middleton (1)
- kate winslet (1)
- ken lewis (1)
- kevin drum (1)
- lafley (1)
- lawyering (1)
- leonie benesch (1)
- liddy (1)
- limiting wall street salaries (1)
- linda greenhouse (1)
- liquidity (1)
- listen up (1)
- lists (1)
- livingwiththeoldies (1)
- lynn a stout (1)
- macArthur (1)
- madmoneyrecap.com (1)
- maira kalman (1)
- malcolm gladwell (1)
- managed futures (1)
- manhattan institute (1)
- mark everson (1)
- mark-to-market rule (1)
- martin act (1)
- mcallen texas (1)
- mcconnell (1)
- meachem (1)
- medicaid (1)
- memory lane (1)
- mergers and acquisitions (1)
- mf global;corzine; Masters of the Universe (1)
- michael jackson (1)
- mike demmer (1)
- mike mayo (1)
- mit (1)
- mit technology review (1)
- mold (1)
- mommy (1)
- money market funds (1)
- moral hazard (1)
- mother jones (1)
- mozilo (1)
- msnbc (1)
- muppets (1)
- mutual funds (1)
- myth of the great war (1)
- nagornay (1)
- naipaul (1)
- nassim taleb (1)
- nationalization (1)
- ncaa (1)
- new construction (1)
- nicholas dawidoff (1)
- nick grealy (1)
- nopec (1)
- not misleading cnbc ads (1)
- not sure (1)
- november 2010 elections (1)
- nymex (1)
- oil sands (1)
- oil spill in gulf (1)
- options (1)
- orange county (1)
- orman (1)
- p&g (1)
- packer (1)
- pakistan (1)
- passive houses (1)
- patrick-taylor plan (1)
- pension funds (1)
- peter weinberg (1)
- phillip blond (1)
- phisosophy (1)
- pico iyer (1)
- pictures (1)
- planes (1)
- plutomomics (1)
- powers of attorney (1)
- prechter (1)
- primal image (1)
- primary care doctors (1)
- procedure (1)
- progress energy (1)
- quants (1)
- queen elizabeth (1)
- quiet zones (1)
- rahm (1)
- randazzo (1)
- random sayings (1)
- randum notes; Hot Air (1)
- ratings (1)
- regulatory capture (1)
- renminbi (1)
- rent scams (1)
- repo 105 (1)
- residential counteroffer (1)
- restoring wireless (1)
- retail (1)
- reunion (1)
- rice v igs (1)
- roger altman (1)
- ron insana (1)
- ross serkin (1)
- roubina (1)
- rtichard posner (1)
- russian winter (1)
- s and p (1)
- sallie mae (1)
- sarah brightman (1)
- saskia de brauw (1)
- saturday night live (1)
- satyajit das (1)
- schadenfreude (1)
- science (1)
- sean miller (1)
- segal (1)
- silver (1)
- single payer system (1)
- singleism (1)
- sistine chapel (1)
- small business (1)
- smart metering (1)
- soros (1)
- speculation (1)
- springfield township (1)
- stalin (1)
- steele (1)
- steidlmayer (1)
- stenfors (1)
- steven g breyer (1)
- steven schwartzman (1)
- stewart (1)
- stiglitz (1)
- strauss-kahn (1)
- strictly local (1)
- susan jacoby (1)
- tabula rasa (1)
- tanenhaus (1)
- tanta (1)
- target date funds (1)
- taxes (1)
- ted forstmann (1)
- ten things (1)
- tett (1)
- thamel (1)
- the haggler (1)
- the reader (1)
- thomas jefferson (1)
- thomas lee (1)
- thomas montague (1)
- thomas ricks (1)
- timeline. laffley (1)
- timothy egan (1)
- tivo (1)
- tod_x;Duke Energy (1)
- todx (1)
- tom archdeacon (1)
- tom daschle (1)
- tom wilson.allstate (1)
- trains and automobiles (1)
- travel insurance (1)
- ultra (1)
- ung (1)
- united states steel (1)
- vanity fair (1)
- vatican (1)
- verizon (1)
- victoria falls (1)
- victorian homes (1)
- w (1)
- wall street (1)
- washinton mutual (1)
- whitebox (1)
- wilpon (1)
- wtrg (1)
- wwII. flash crash (1)
- www.rule26a1.com (1)
- x (1)
- year_end (1)
- zambia (1)
- zardari (1)