Posted on 08/29/2009 2:58:55 PM PDT by FromLori
The cap and trade bill will be huge business for investment banks, leading to a boom in M&A and underwriting activity, says Kyle Stock on the WSJ's Deal Journal blog.
In particular, U.S. industrial companies will begin to look more attractive to companies in Europe, which has had a carbon market since 2005. While the U.S. power market has long looked good to foreigners, because Americans buy a relatively large amount of electricity per-capita and the regulatory structure here lends itself to rate increases, European companies have shied away from acquisitions because of the carbon question mark. They would likely be bolder if carbon had a price and a fixed supply.
Relatively “clean” utilities such as Xcel Energy, of Minneapolis, would command a premium, as would those that are buying or building wind turbines and solar panels, like New Jersey’s NRG Energy.
Meantime, Hill said a cap-and-trade system would also heat up underwriting activity, as power companies would need to raise cash to bankroll new infrastructure for cutting emissions and to buy companies that create renewable energy.
(Excerpt) Read more at businessinsider.com ...
What happens to the banks the dollar is dead?
It may be great for investment bankers,but it will be paid for off the backs of Americans.
Enron INVENTED cap and trade way back when Clinton was POTUS. Goldman Suchs is behind all the Enron boys getting tossed in prison because they realized Enron was way ahead of everyone else in figuring out how to make money selling nothing but air.
Goldman Sachs made a fortune underwriting worthless dot.com companies. When that blew up, they moved on to securitorizing sub-prime mortgages and made another fortune. Now that the mortgage market has blown up, they have move on to cap and trade
Most all of us will be out of work, inflation will rival ‘30’s Germany and Americans will be starving. But those Bankers will be rolling in high cotton, absorbed with the sweat and blood of the majority.
Would anybody here actually have thought there would come a day when these scumbag opportunists would find a way to buy and sell the air we breathe?
Yes, the money handlers will do very well pushing papers and producing nothing and other countries will get flooded with our money. But where does that money come from? Oh, from people actually making something.
Yes, cap and trade could be big for them. Just like counterfeiting would be good business, and selling bad mortgages, that gave us a good run too.
Nothing is better business than selling paper that you just print up on your laser jet, that has absolutely no underlying value whatever, and yet you can sell it like hotcakes to people you’ve conned into believing in it.
And hey, its backed by the US government! It has to be a safe investment.
“Since we decided a few weeks ago to adopt the leaf as legal tender, we have; of course, all become immensely rich…..but we have also run into a small inflation problem on account of the high level of leaf availability, which means that, I gather, the current going rate has something like three deciduous forests buying one ship’s peanut…….So, in order to obviate the problem and effectively revalue the leaf, we are about to embark on a massive defoliation campaign, and…..er, burn down all the forests. I think you’ll all agree that’s a sensible move under the circumstances.”
Ah, well - what’s the harm in destroying the US economy if European investment bankers can benefit? In every cloud a silver lining.
Is that polar bear gore? lol
yah...I particularly like the polar bear...
Oh goody. Another boondoggle that Wall Street can get in on at the expense of everyone else.
Well if it wasn’t cap and trade, it would be tulips.
Back in the day, people actually made money investing in productive enterprises. Now, its all the rage to make money in things that exist only on paper: derivatives, CDS, carbon permits, etc. Just another sign that our socieity is rotting out from under us.
Cap And Trade Will Be Huge For Oversseas Investment Banking ... as companies flee the US as fast as they can. One more step in reducing the US to rubble by Hussein.
Yes. It’s too common so let’s ban hydrogen as well.
Why is that pig wearing a space helmut - don’t you knw those things are expensive? If pigs want to fly in space it is one thing, but giving then helmuts without suits or air supply is not only cruel, but expensive. We have homeless to feed and a climate to save!
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