According to top experts, risky derivatives were not only largely responsible for bringing down the American (and world) economy, but they still pose a substantial systemic risk.
Now, Bloomberg notes that the carbon trading scheme will be largely centered around derivatives.
CDS were invented by Blythe Masters, who now heads JPMorgan’s carbon trading and insists banks must lead the way to a greener world by trading carbon credits the way they traded credit default swaps. Right. I mean, they already blew up the economy once so why not let them try again. Maybe they’ll do even more damage this time. While making many billions for themselves.
Do you trust investment banks to make a safer, greener world for us? Didn’t think so.
(1) the giant banks will make a killing on carbon trading, (2) while the leading scientist crusading against global warming says it won’t work, and (3) there is a very high probability of massive fraud and insider trading in the carbon trading markets.
Even George Soros says the system will be gamed.