The most interesting part of “The Great American Bubble Machine,” Matt Taibbi’s ruthless dissection of Goldman Sachs in Rolling Stone, comes at the end.
Taibbi talks about “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 commodies 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.”
Taibbi also notes that Goldman Sachs greased the skids for the nascent trillion-dollar carbon-credit market by shelling out $4,452,585.00 in campaign contributions to Democrats during the 2008 elections.
The result has been narrow passage in the U.S. House of representatives of H.R. 2454, a bill that supposedly addresses climate change by establishing carbon cap and trade.
As always, follow the money, even when it comes in a presumably environmentally friendly wrapper.