At the end of Matt Taibbi’s punishingly concise article in the Rolling Stone, called Inside The Great American Bubble Machine, he wrote:
Fast-forward to today. It’s early June in Washington, D.C. Barack Obama, a popular young politician whose leading private campaign donor was an investment bank called Goldman Sachs—its employees paid some $981,000 to his campaign—sits in the White House.
Having seamlessly navigated the political minefield of the bailout era, Goldman is once again back to its old business, scouting out loopholes in a new government-created market with the aid of a new set of alumni occupying key government jobs.
Gone are Hank Paulson and Neel Kashkari; in their place are Treasury chief of staff Mark Patterson and CFTC chief Gary Gensler, both former Goldmanites. (Gensler was the firm’s co-head of finance.)
By most any intelligent person’s judgment, this is undeniably a tag-team; mutual special interest operations digging into a guaranteed-by-law trough of unending cash from the tax-payer. What else could trillions of virtually inconceivable bailout dollars be? But here’s the bit that I don’t understand. Actually, I barely grasp any of it, so far from my instinctual interests.
Nonetheless, Taibbi goes on to say:
And instead of credit derivatives or oil futures or mortgage-backed CDOs, the new game in town, the next bubble, is in carbon credits — a booming trillion-dollar market that barely even exists yet, but will if the Democratic Party that [Goldman Sachs] gave $4,452,585 to in the last election manages to push into existence a groundbreaking new commodities bubble, disguised as an “environmental plan,” called cap-and-trade. The new carbon-credit market is a virtual repeat of the commodities-market casino that’s been kind to Goldman, except it has one delicious new wrinkle: If the plan goes forward as expected, the rise in prices will be government-mandated. Goldman won’t even have to rig the game. It will be rigged in advance.
Can anybody explain that, and how it would speculatively work (pun intended), or post a good link? My pre-economic mind can’t understand it. Suffice to say, it’s no surprise that anything moving toward sustainable living, not directly tied to fossil fuels and growth—in fact quite the opposite—would be co-opted by certain interests.
Keep loving, keep learning,