Gerry Canavan

the smartest kid on earth

Posts Tagged ‘Federal Reserve

Wednesday Night!

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* I just don’t understand it; instead of feeling happy, I feel sort of let down: You’re a Good Man, Barack Obama. (Thanks, Erica!)

* How cap-and-trade works for acid rain and smog. The success of sulfur dioxide market is an important piece of counterevidence to those (like me) who think that a cap-and-trade market won’t work—but it’s worth noting that a carbon market would be far larger in scope than the SO2 version, potentially impacting nearly every segment of the global economy. Speculative trading and even a financial bubble is much more likely to emerge in a global CO2 market than in a sulfur dioxide market conducted in a single country. An earlier Grist piece also problematizes the supposed success of sulfur trading:

Compare the success of the often-touted sulfur dioxide trading system the U.S., instituted in 1990, with the speed and quantity of reductions under rule-based systems during the same period. U.S. SO2 emissions dropped by 31% between 1990 and 2001. Over the same period of time, under old fashioned rule-based regulation, Germany reduced its emissions by 87%, Italy by 62%, and Western Europe as a whole by 57%.

A carbon tax remains the smarter choice.

* How Canada is screwing up Copenhagen.

* And my favorite senator, Bernie Sanders, will try to put a hold on Bernanke’s reconfirmation at the Federal Reserve.

King Ben

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That Republicans and Democrats always agree about who should chair the Federal Reserve tells you a lot about the way politics actually works in America. The most important issues are the ones that have been put beyond all possible dispute, on which all reasonable people can only agree.

Written by gerrycanavan

August 25, 2009 at 4:47 am

Market Apocalypse

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Via Matt Yglesias and everywhere else, this is why I’m glad I have no money:

It’s just been announced that JP Morgan will buy Bear Stearns for $2 a share, implying a value of about $250 million. Given that the company headquarters is said to be worth about $1.2 billion, that gives the BS banking business a value of negative $1 billion. And that’s only after the Fed agreed to take on $30 billion worth of toxic waste from the BS portfolio, politely described as “less-liquid assets.”

Bear Stearns, Wall Street’s fifth-biggest investment bank, had opened at $60 a share on Thursday.

There’s much more at Huffington Post, MetaFilter, and elsewhere, including Alan Greenspan’s claim that this is the worst financial crisis since World War II. And he should know, he helped cause it.

Written by gerrycanavan

March 17, 2008 at 4:00 am