WTF? Cap and trade woman invented credit default swaps
Tuesday, 12/8/2009 - 11:56 am by Lynn Parramore | 4 CommentsBy now you know that risky derivatives, particularly credit default swaps, are the financial Frankenproducts that caused the economic meltdown.
But here’s something you might not know: Blythe Masters, the woman who invented CDSs, is now turning her genius to carbon trading at JP Morgan. A recent posting on Naked Capitalism shines a light on the danger of a carbon trading schemed centered around derivatives.
In an email to me this morning, Marshall Auerback noted that Copenhagen is looking like a “big boondoggle for Wall Street.” The climate change conference, he noted, is “dressed up as being wonderful for the environment, much as financial deregulation was celebrated as the ‘democratisation of credit’.”
Climate change Wall Street can believe in?
Delightful! Ugh. Vital information, but not easy on the stomach, is it?
Posted by James Call | December 8th, 2009 at 12:56 pm
Here’s a fun and easy to understand explanation of why cap and trade is not the solution to climate change:
http://www.storyofstuff.com/capandtrade/
Posted by Zach P | December 8th, 2009 at 1:05 pm
Thank you so much for the info.
I’m going to publicize it on my blog.
S
Posted by Suzan | December 8th, 2009 at 6:36 pm
Carbon Default Swaps! An inexorable development by Wall Street’s gurus, who can/will securitize anything in dizzying style!
Posted by Marc | December 10th, 2009 at 4:01 am