‘Dark Market’ Trading Will Be Banned in Carbon Bill, Boxer Says - Bloomberg.com

Senator Susan Collins, a Maine Republican who voted for Boxer’s bill last year and supported President Barack Obama’s $787 billion stimulus package in February, said cap-and-trade is a tougher sell to lawmakers after the involvement of complex derivatives trading in the bankruptcy of Lehman Brothers Holdings Inc. and the taxpayer rescue of American International Group Inc.

“I think there’s more skepticism about markets and about the ability of markets to function free from manipulation, excessive speculation and abuse,” Collins said in an interview.

“We have to proceed carefully and do this right. Many people are worried about the economic impact of cap-and-trade and they’re worried about the complexity of cap-and-trade.”

[Nobel Prize-winning economist actually thinks trading carbon scam credits is like trading wheat] - Paul Krugman Blog - NYTimes.com

Yet as Joe Romm tells us, Sen. Byron Dorgan — who I suspect kind of favors allowing the market in wheat to operate — warns against cap and trade because it would offer too many opportunities to the “Wall Street crowd.”

Scoop: Carbon Trading Open Invitation To Fraud

"So, to my knowledge, carbon trading is the only commodity trading where it is impossible to establish with reasonable accuracy how much is being bought and sold, where the commodity that is traded is invisible and can perform no useful purpose for the purchaser, and where both parties benefit if the quantities traded have been exaggerated.

"It is, therefore, an open invitation to fraud and that is exactly what is happening all over the world," said Mr Leyland.