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View Diary:  Cantwell's CLEAR Gamechanging, Simpler + Fairer CO2 Reduction Senate Approach (96 comments)

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  •  Complex problems require complex (4+ / 0-)

    solutions.  REDD is very complex -- I already did a diary that just scratched the surface of both the international and national issues.  And as for the Clean Energy Jobs bill, that is CEJAPA.  

    The Senate leadership has made a conscious decision to wrap the controversial aspect of a climate change bill -- cap and trade pollution reduction & investment -- in with the less controversial aspects such as jobs, RES, and porky pet projects.  Time will tell if it was a good decision or a bad one.

    •  That complex solution has serious side effects (1+ / 0-)
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      divineorder

      Is Cap and Trade a Dead Policy Walking?

      For all of cap-and-trade’s initial promise as an answer to climate change, the current financial crisis has made its vulnerabilities painfully clear. The strategy would have the government create trillions of dollars in new, asset-based financial instruments. These emissions-right-backed securities, like their cousins, mortgage-backed securities, also would throw off a host of new derivatives to be profitably traded by the "professionals." Unsurprisingly, cap-and-trade’s fiercest promoters include Wall Street institutions that see emissions-permit trading as a lucrative new market that could earn them billions in new fees, commissions and, while it lasts, speculative gains. But after Wall Street’s meltdown, the proposition for another round of the financial merry-go-round that produced the worst economic crisis in our lifetimes seems either very naïve or very cynical.

      Like the excesses that helped create our current crisis, the financial markets for emissions permits also could well produce serious insider trading and manipulation. That’s because the final purchasers of the permits, large energy companies and utilities, would see shifts in demand for the underlying energy coming before anyone else. This information would create golden opportunities for insider profits and market manipulation, and erecting a "Chinese wall" inside the companies to segregate the production division from the trading division would work no better than it has on Wall Street. That may explain why until its own collapse, Enron was a prominent advocate of cap-and-trade.

      This country has come to feel the same when Congress is in session as when the baby gets hold of a hammer. -Will Rogers

      by Lefty Coaster on Sat Oct 03, 2009 at 09:14:25 PM PDT

      [ Parent ]

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