"If you thought credit default swaps were ephemeral, just wait until utilities, governments, and financial institutions start to sink wealth into tradable carbon credits."

Unless CO2 trading can garner broad political and legal legitimacy, the carbon market may prove to be another brilliantly designed incinerator of capital.

Broad political and legal legitimacy won't help since the ideas aren't grounded in reality. Having more believers and laws to punish heretics can delay an eventual catastrophic unraveling, but not prevent it.