Needless to say, the financial players in the electricity market are withdrawing from long-term hedging products, which means the utilities are increasingly unable to lay off the risk. So they'll be passing the volatility through in the electricity price - and the industrials also won't be able to get financial hedges.
ooeerr.... does not sound good.
Sometimes I get disheartened that the better business blogging is done by the Righties, but there are interesting (ie not 'hang all bankers') thoughts at Bloggers4Labour, which makes me hopeful that we are starting to see the emergence of some sensible left-of-centre views.
Hat-tip to Raj for highlighting this story about the Lehman Brothers pension fund for UK staff looking to be taken over by the Pension Protection Fund. Another example of the financial sector needing the state to clean its mess up (the PPF was established by Labour to protect people's pensions when their employer went belly up).
And at the same time, in a nice demonstration of how interwoven the whole system is, UK-based pension funds are trying to take legal action against Lehmans because of their losses.
And I missed this great post from Paulie.
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