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{{a|myth|{{fwmd|Emissions allowance|}}}}[[Collateralised emissions obligations]], were an apocryphal | {{a|myth|{{fwmd|Emissions allowance|}}}}[[Collateralised emissions obligations]], (also known as “'''[[CEmO]]s'''”) were an apocryphal structured product type consisting of a tranched, securitised, leveraged exposure to carbon credits<ref>In the heady days of 2007 the [[JC]] even had this idea, ran down to the commodities trading floor to share what he thought was a tremendous joke with the structured products team. The lead structurer shook his head morosely and said, “Won’t work. We have tried and we can’t get the accounting treatment we need.”</ref> that did not in fact exist but, had it existed, surely would have precipitated a [[global financial crisis]], as [[Carbon trading|carbon traders]], hopped-up on absurd amounts of [[synthetic alpha]] blew up not just the financial markets but the entire planetary ecosystem with their leveraged bets on the squirrely commitments of G20 nations to act on climate change. | ||
“A five-times leveraged derivative of hot air!” traders would chortle, selling these things out to the most vulnerable and credulous people in society: minimum-wage hospitality workers, the elderly, the infirm, the illiterate and regional German ''landesbanks''. | “A five-times leveraged derivative of hot air!” traders would chortle, selling these things out to the most vulnerable and credulous people in society: minimum-wage hospitality workers, the elderly, the infirm, the illiterate and regional German ''landesbanks''. | ||
{{sa}} | {{sa}} | ||
*[[Carbon trading]] | |||
*[[Emissions Annex Anatomy]] | *[[Emissions Annex Anatomy]] | ||
*[[Global financial crisis]] | *[[Global financial crisis]] | ||
{{ref}} | {{ref}} |