Errata

1. Applying lessons from the finance system's trouble to other areas...

Too big to fail, in retail, would that be Wal-Mart?

2. Skeptical on Green Jobs

We're being promised green jobs making windmills* or solar power equipment, but I bet those jobs end up in China and instead the only jobs in the USA will be the warehouse forklift guys and the installers. Anecdotal evidence is that the Chinese already make solar panels, and sell most of them to Germany where they are heavily subsidized.

It is especially wrong-headed to have a cap & trade or carbon tax that is based only on domestic production - you essentially give yet another cost advantage to China and friends - instead of on consumption and have it apply to imports as well as domestic products. 

I anticipate a WTO challenge to this, but since Value Added Taxes are already applied to imports and rebated for exports, I see no reason a carbon tax could not be done similarly. 

This also elminates the free-rider problem where you could end up with all carbon emissions simply being transferred from the USA to China and India - not exactly the goal of these policies I think.

*Just read some Danish company (Vestas?) is investing billions in windmill factories in Colorado, so maybe there will be jobs. I'm curious how well they do versus the Indian companies that also make windmilss - maybe the quality issue will make them competitive.