Thursday, May 28, 2009

The "Money" in Cap and Trade

I apologize, in advance, for being so stuck on "the money" generated by the favored solution to greenhouse gas amelioration---cap and trade. But being both a curmudgeon and having a strong intellectual proclivity against what the sheep think, climate change legislation will generate "green jobs." The problem is the majority of those jobs will be on Wall Street in the next bogus derivative market---carbon credits. Not only will this "solution" create many more public financial problems than the bogus housing finance scheme the market invented in the 1990s, but it will not reduce greenhouse gases.

If, and this is a big "IF", the House passes the Waxman-Markey cap and trade bill and the Senate passes something and they are able to reconcile their differences in conference committee, I predict that there will be so many free credits to favored industries (to get the votes), that the end result will be lots of rich investors (big corporations, a plethora of Congress-people, environmentalists, and of course, Wall Street). What a collection of characters! It inspires fear and reasons for Americans to strongly oppose cap and trade.

Did I mention that since the petroleum industry is not a favored industry, look for higher and higher gas prices at the pump! That is certain to help Minnesota families, generally, during this terrible recession and the recreation market in greater Minnesota more specifically. Have a great summer (sarcasm added)!

Carbon market doubled in 2008: World Bank
Published: 27 May 2009 10:26 CET
"The value of the carbon market doubled in 2008 to $126 billion (€86bn), the World Bank said.
The total volume of trade rose 61 percent to 4.8 billion tonnes of carbon dioxide equivalent (CO2e), compared to 3.0 billion tonnes in 2007, a report by the bank revealed today."

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