Thursday, May 27, 2010

Crisis of 2025

Contrary to Jeremy Stein's scenario, I'd think a financial crisis of 2025 would have more to do with out-of-control entitlements and downgraded sovereign debt than with windpower derivatives (unless perhaps that crisis will already have hit when the windpower one arrives). Excerpt:
Washington, D.C., May 27, 2025. Just four months into his first term, President Scott P. Brown faces what is rapidly becoming a severe financial crisis, with the collapse yesterday of yet another Stable Wind Farm Trust. The failed institution, Magna-SWIFT, is the largest thus far, with over $90 billion in assets. Rumors also continued to swirl about the condition of the Houston Power House, one of the nation’s largest clearinghouses specializing in weather and power derivatives. Experts warned that a major clearinghouse failure could have devastating implications.
More here.

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