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As a political scandal, Enron has fizzled out. Democrats know that the story is not going to dominate the midterm elections and are searching for other clubs with which to hit the Bush administration. So the scandal won't hurt Republicans. It could still, however, damage the economy and Americans' liberties.
That's because Enron has inspired, or is being used to justify, quite a few bills in Congress. The near-universal assumption in Washington has been that the Enron debacle proves that policy changes are necessary. While some changes might indeed be worthwhile, let's not forget that the system has actually worked pretty well. The market detected that the ...