FW: Reply to Paul Krugman's column (Enron Goes Overboard, August ,
 I received an auto-reply email from Terry Tang indicating that she is on va=
cation and that I should forward this to you.  In the meantime,  I have spo=
ken to Ken Lay, our Chairman, President and CEO.  He said that he would be =
happy to put his name to the letter if that would improve its chances for p=
ublication.  Let me know.

 -----Original Message-----
From: =09Kean, Steven J. =20
Sent:=09Saturday, August 18, 2001 8:45 AM
To:=09'tang@nytimes.com'; 'letters@nytimes.com'
Subject:=09Reply to Paul Krugman's column (Enron Goes Overboard, August 17)

=09Paul Krugman has made frequent negative references to Enron and its mana=
gement in his New York Times column over the last twelve months.  I have re=
frained from responding until now.  Below (and in the attached in Word form=
at) is a letter I hope you will print.  If you wish to contact me, you can =
call my office (713.621.6550) or page me (888.906.9761).  Thank you for you=
r consideration.

Steven J. Kean
Executive Vice President and Chief of Staff
Enron Corp.


It's hard to tell what motivates Paul Krugman's frequent attacks on Enron (=
"Enron Goes Overboard" August 17).  His latest attack is no more than a str=
ing of misstatements and non-sequitors reminiscent of a schoolyard taunt.  =
He reveals, in depth, his ignorance of Enron, the people who work here, and=
 the tragically botched California regulatory regime.  Perhaps he seeks mer=
ely to entertain.

=09The broader goal of his personal attack appears to be to discredit the f=
ree market system - a system that entrusts people to make choices and enjoy=
 the fruits of their labor, skill, intellect, and heart. He would apparentl=
y rely on a system of government controlled or sponsored monopolies to make=
 choices for people.  We disagree, finding ourselves less trusting of the i=
ntegrity and good faith of such institutions and their leaders.  Ironically=
, the example Krugman cites of "financialization" run amok (the electricity=
 market in California) is the product of exactly his kind of system, with a=
ctive government intervention at every step.  Indeed, the only winners in t=
he entire California fiasco were the government owned utilities of Los Ange=
les, the Pacific Northwest, and British Columbia.  The disaster that squand=
ered the wealth of California was born of regulation by the few, not by mar=
kets of the many.  So long as Krugman's elitist reasoning prevails, we are =
doomed to repeat such mistakes.

Steven J. Kean
Executive Vice President and Chief of Staff
Enron Corp.

=20
ireland@nytimes.com