The Christian Science Monitor (csmonitor.com) is reporting that if cap and trade becomes law, we could see another market meltdown similar to the subprime mess.
The carbon permits created by the legislation, if left unregulated, “would create whole new classes of financial assets, which financial firms could securitze, derivatize, and speculate on,” according to csmonitor.com. This market, the article claims, “is expected to become the world’s largest derivatives market.”
C. S. Monitor link: Could cap-and-trade create another economic bubble? | csmonitor.com.
Another serious concern about cap and trade is how American farmers will be on the losing end of the deal (read the story linked below).