|
vincentML -> RE: global climate change catastrophe - lessons learned (12/24/2009 9:36:14 AM)
|
quote:
ORIGINAL: InvisibleBlack
It's genius. It's brilliant. It's evil but it's brilliant. Billions, possibly trillions, were made in the derivatives markets before they melted down and they had at least a tenuous link to a real asset - someone's actual home. I expect the insiders who trade on these exchanges will make fortunes that are boggling beyond comprehension, and that the market will overheat and then melt down just like the energy commodity markets did, the housing market did and the derivatives market did. Only in those markets - at least you could recoup something even if it's only cents on the dollar or a foreclosed home. There was still an asset there.
At the start of the market, what are these things worth? Whatever the government tells you they are. How can you even argue? If five years from now the carbon credit market implodes and you're left holding thousands of securities created from securitizing emissions waivers that nobody wants - what are they worth? Truly nothing.
Who made all the money? The guys trading the waivers.
I'm in awe.
Excellent, Black.
|
|
|
|
