Enron Corp.'s manipulation of the California energy market in 2000 and 2001 is notorious. Electricity bills soared and blackouts affected hundreds of thousands of people as contemptuous traders with Enron, a power wholesaler, delighted in their scheme. Tapes of traders released in 2004 contained infuriating nuggets like this: "Just cut 'em off... They should just bring back f------ horses and carriages, f------ lamps, f------ kerosene lamps."

After investigating the scandal, the Federal Energy Regulatory Commission (FERC) concluded that "supply-demand imbalance, flawed market design and inconsistent rules made possible significant market manipulation," and that many of Enron's trading strategies ...

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