Yesterday, in Cap and Trade Will Likely Pass Because It Favors Big Finance, EBR opined that in keeping with the actions of the current and two prior administrations, a "climate change" bill based on creating a trading market would likely pass because it provides a large, unending previously undreamt of revenue stream for the financial community to profit from and which will undoubtedly be dominated by Big Finance rather than by small players.
A straightforward tax on carbon as it is used for fuel, floated briefly and timidly by the Clinton-Gore White House, has been given no consideration by the parties to the cap and trade juggernaut.
This view is supported by an article that appeared today on Bloomberg.com:
CO2 Traders Hedging Against New Climate Laws, RNK Capital Says
Carbon traders will buy more option contracts this year as a hedge against new climate laws and devaluation of credits for richer nations that help cut greenhouse gas in the developing world, RNK Capital LLC said.
Ken Schneider, an options trader at New York-based environmental hedge fund RNK, said investors are buying put options on speculation there will be new restrictions on United Nations’ Certified Emission Reduction credits.
How much simpler and less expensive to simply tax carbon-based fuels more heavily!
For the followers of the geniuses who eviscerated the Glass-Steagall separation of investment banking from conventional depository-based banking, who ruled that collateralized debt swaps were the only form of insurance that AIG could write that required no reserves, and who bailed out financial institutions with trillions of dollars with no upside for taxpayers other than that these same institutions could then lend the taxpayers that very same money at a profitable rate of interest, the only way is "Blank" and TRADE.
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