Mcteer must have discovered GICC.

McTeer-California could enter recession due to energy May 30, 2001

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SAN ANTONIO, Texas (Reuters) via NewsEdge Corporation -

Federal Reserve Bank of Dallas President Robert McTeer said on Wednesday that it was possible that the Californian economy could slip into recession due to the state's ongoing energy crisis.

Speaking on the economic outlook to the San Antonio Economic and Business Society, McTeer said he thought the price controls put on some energy bills in California had caused the problems in the state and more such controls were not a solution.

``The governor of California has mentioned the possibility of recession because of the high energy prices there. What do I think about that? Well it is possible,'' said McTeer.

McTeer said the deregulation of the California energy market, which had placed price caps on retail charges but not wholesale charges, was the worst type of regulation.

^ REUTERS@

http://www.individual.com/story.shtml?story=d0530144.700

-- Martin Thompson (mthom1927@aol.com), May 30, 2001

Answers

It's "possible" that California may enter a recession. McTeer needs a reality check. Today we consumed 35,000 megawatts, and barely averted rolling blackouts. (Northern California was blistering hot, but Southern California stayed cool--average temp:66 degrees). Come July average usage is closer to 45,000 megawatts a day. Where is the extra 10,000 units coming from when other states that have been exporting electricity into California can no longer do so because of their own increased demand?

As they say, the Devil is in the details. It will be most interesting to see how this catastrophe plays out. Thank God, I still have a good supply of y2k, or, end-of-the-world, stuff. I figure I'll need it--to the max.

-- JackW (jpayne@webtv.net), May 31, 2001.