The systems effects resulting from a combination of free markets and well-intentioned government regulation can be tricky. Enron's problem was obvious, though.

The systems effects resulting from a combination of free markets and well-intentioned government regulation can be tricky. Enron's problem was obvious, though. They controlled both the distribution lines and the generation facilities, and were allowed to participate in an energy derivatives market too. And either no caps on profits or no meaningful caps. And California let that happen. It's like letting wild cats live on your ranch and then being shocked, shocked when they start killing your cattle. Except in this case I think California was actually shocked, because the politicians were too clueless to realize what could happen.