In early 1999, Krugman served on an advisory panel (including
Larry Lindsey and
Robert Zoellick) that offered
Enron executives briefings on economic and political issues. He resigned from the panel in the fall of 1999 to comply with
The New York Times rules regarding conflicts of interest, when he accepted the
Times's offer to become an op-ed columnist.
[190] Krugman later stated that he was paid $37,500 (not $50,000 as often reported - his early resignation cost him part of his fee), and that, for consulting that required him to spend four days in
Houston, the fee was "rather low compared with my usual rates", which were around $20,000 for a one-hour speech.
[190] He also stated that the advisory panel "had no function that I was aware of", and that he later interpreted his role as being "just another brick in the wall" Enron used to build an image.
[191]
When the story of
Enron's corporate scandals broke two years later, Krugman was accused of unethical journalism, specifically of having a conflict of interest.
[192][193][194] Some of his critics claimed that "The Ascent of E-man," an article Krugman wrote for
Fortune magazine
[195]about the rise of the market as illustrated by Enron's energy trading, was biased by Krugman's earlier consulting work for them.
[190] Krugman later argued that "The Ascent of E-Man" was in character, writing "I have always been a free-market Keynesian: I like free markets, but I want some government supervision to correct market failures and ensure stability."
[190] Krugman noted his previous relationship with Enron in that article and in other articles he wrote on the company.
[190][196] Krugman was one of the first to argue that deregulation of the California energy market had led to market manipulation by energy companies.
[197]
Krugman
Reply With Quote
Originally Posted by Buzz
. Ask any prostitute, when her life changing moment was, which was when she 1st charged for the act 
. I personally believe it safe to say that any association with Enron & their business model makes anyone involved even GWB as guilty of very poor judgment. 
.
