Climategate

Woman Who Invented Credit Default Swaps is One of the Key Architects of Carbon Derivatives, Which Would Be at the Very CENTER of Cap and Trade

Bloomberg notes that the carbon trading scheme will be largely centered around derivatives The banks are preparing to do with carbon what they’ve done before: design and market derivatives contracts that will help client companies hedge their price risk over the long term. They’re also ready to sell carbon-related financial products to outside investors.

Blythe Masters says banks must be allowed to lead the way if a mandatory carbon-trading system is going to help save the planet at the lowest possible cost. And derivatives related to carbon must be part of the mix, she says. Derivatives are securities whose value is derived from the value of an underlying commodity — in this case, CO2 and other greenhouse gases.

Who is Blythe Masters? She is the JP Morgan employee who invented credit default swaps, and is now heading JPM’s carbon trading efforts…

Full story: Infowars Ireland. | Discuss: here

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