devoish (98.81)

Carbon Tax and Refund

April 03, 2009 – Comments (2) | RELATED TICKERS: WYE.DL , JRCC , GS

Loses to "Cap and Trade".Here is a review of a Carbon Tax and Refund plan.

Below are some of the solutions (aka, unenforcable rules) to some of the problems with "Cap and Trade".

I recommend reading the "Cap and Trade" summary not the legislation. The summary sounds so much more hopeful. What is copied below is from the legislation.

Note to Representative Waxman,

Good luck with this. 

‘‘(2) REGULATIONS.—The regulations promul14

gated pursuant to paragraph (1) shall—

15 ‘‘(A) provide for effective and comprehen16

sive market oversight;

17 ‘‘(B) prohibit fraud, market manipulation,

18 and excess speculation, and provide measures to

19 limit unreasonable fluctuation in the prices of

20 regulated allowance derivatives;

21 ‘‘(C) facilitate compliance with this title by

22 covered entities;

23 ‘‘(D) ensure market transparency and rec

24 ordkeeping necessary to provide for efficient

25 price discovery; prevention of fraud, market ma-

1 nipulation, and excess speculation; and compli2

ance with this Act;

3 ‘‘(E) ensure that position limitations for

4 individual market participants are established

5 with respect to each regulated allowance deriva6

tive;

7 ‘‘(F) ensure that margin requirements are

8 established for each regulated allowance deriva9

tive;

10 ‘‘(G) provide for the formation and oper

11 ation of a national market system that allows

12 for best execution in the trading of regulated al13

lowance derivatives;

14 ‘‘(H) to the extent the regulations deviate

15 from the rule set forth in paragraph (4)(B),

16 limit or eliminate counterparty risks, market

17 power concentration risks, and other risks asso18

ciated with over-the-counter trading; and

19 ‘‘(I) include such other requirements as

20 necessary to preserve market integrity and fa21

cilitate compliance with this title and the regu22

lations promulgated under this title.