FEB 5 2011, 2:30 PM ET
By Chuck Spinney
One of central causes of the financial meltdown was the lack of transparency in the complex derivatives, like bundled mortgages and credit default swaps. Advocates of global warming would have us to believe that they can construct a transparent carbon emissions trading scheme that will provide market incentives to reduce the emission of greenhouse gases.
At the center of this trading scheme is the idea of a carbon credit, which is a generic term for any tradable certificate or permit representing the right to emit one ton of carbon or carbon dioxide equivalent. Think of a carbon credit as property in a free market economy — Ayn Rand, meet Global Warming.
Phi Beta Iota: We have from the beginning denounced carbon credits as a financial scam.