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Two real financial thinkers venture into CNBC fantasy world; comedy ensues

Okay, this is priceless -- and anyone who wants to understand not only our economic calamity but also why we're still screwed has to watch it. Oh, and don't worry -- it's also absolutely, laugh-out-loud hilarious (in a bittter sort of way).

Nouriel Roubini and Nassim Taleb are two of our most trenchant and learned commenters on finance. It's time to start listening to them -- if Obama is serious about running a centrist administration, it's a scandal that he tapped Robin Rubin acolytes Summers and Geithner, not Roubini and Taleb, to run economic policy.

For years, the two men have been making the point that the U.S. economy is way too hinged on debt, speculation, obsession with short-term gain, and philistine optimism -- the very things raised to the level of fetish by the Rubin crowd. Roubini and Taleb predicted a cataclysmic tumbling of the house of cards built on that shaky foundation. They gained a small following, but were widely ignored -- particularly by the TV financial media, which became a craven, self-parodying machine for turning Wall Street and corporate hucksters into folk heroes.

Unforgiving math

"This not a matter of politics or morality or right or wrong. It is simply the unforgiving math of accumulating emissions."

-- U.S. climate envoy Todd Stern, accompanying Secretary of State Hillary Clinton on her first visit to China

Two encouraging signs that global climate treaties might be having the intended effect

Although rumors of its death may be exaggerated, the Kyoto Protocol hasn't so far been anyone's idea of a rip-roaring success. The question remains: is the international treaty fundamentally flawed, or is it a fixer-upper that bureaucrats are slowly tweaking into an effective carbon-fighting regulatory framework?

Two pieces of recent evidence boost the fixer-upper view. The first is a report from a prominent research group suggesting that a large part of the European Union's drop in carbon emissions last year are attributable to the cap.

EU emissions dropped by 3 percent in 2008. According to New Carbon Finance, 40 percent of this drop is due to Kyoto. Another 30 percent is due to the recession. Much of the drop came from a switchover from coal to natural gas.

To be sure, this is a modest improvement. The drop itself is small, and natural gas is still a fossil fuel. Nevertheless, this is how a carbon price works: gradual, steady pressure yields incremental movement toward cleaner technologies. The mechanism appears to be sound, and legislators are presently engaged in the political task of making the cap more stringent.

Life advice from the Oscars

"All my life, I've had the choice between love and hate. I chose love. And now I'm here."

-- A.R. Rahman, winner of two Academy Awards for his music in Slumdog Millionaire

Monbiot on nuclear

George Monbiot writes a column about nuclear power and conditions under which he would not oppose it.

1972 Datsun dominates drag strip

I put up a post in March of 2007 titled Electric cars: Going nowhere fast. It contained photos of electric cars available at the time. Erik Hoffner sent me this link in an email the other day. Coincidentally I ran across this same clip while channel surfing on TV that same night.

Conversions may outstrip production cars in the not too distant future, if somebody out there would just give us the battery we need at prices that we can afford. I've got my eye on this company.

Also, we need new resources …

"The time for implacable opposition, for going it alone, has passed. We need new approaches and greater adaptability if we are to achieve acceptance of fossil fuels as sustainable resources."

-- ConocoPhillips CEO James Mulva [PDF]

Geoengineering what?

China fires chemicals into the clouds to try to stimulate rain to end the drought. Days later, a huge and unexpected snowfall closes the highways into and out of the northern provinces, effectively shutting off economic activity.

Discuss.

Heading to Denmark in December? Book a room now

The average December in Copenhagen has 17 days of rain and a temperature of 2 to 4 degrees Celsius. So, those readers planning to travel there for the U.N. Climate Change Conference at the end of this year will want to book a warm, dry bed for recovering from all the talking, negotiating, talking about […]

Friday music blogging: Slumdog Millionaire

In honor of the Academy Awards, here's a song from the odds-on favorite to win Best Picture: Slumdog Millionaire.

I've had somewhat mixed feelings about the movie itself. I enjoyed it immensely while I was watching it (how could you not?). Later I read a bunch of grumpy backlash -- it's manipulative; it romanticizes poverty; the female character is inert; etc. -- and found myself revising my original assessment. And later still, I said to myself, you know what? Screw you grumpy backlashers. It was a fairy tale, an effort to marry the exuberance of Bollywood with independent American filmmaking; social realism wasn't the point. It was a celebration of life and transcendence amidst suffering, and I'm by-god going to trust my gut and love it.

(Yes, I'm extremely neurotic.)

One thing was never in doubt, though: the music is awesome. It is absolutely an essential character in the movie, as much a polyglot, life-affirming mess as the film itself. It's easily one of the best soundtracks of the last five years, and one of my favorite albums of the year. Incidentally, the producer, A.R. Rahman, is an enormous international celebrity -- but no one in America knows his name. Hopefully this album will change that.

While we're at it, we might as well use this thread for Oscar thoughts and predictions. Who are you rooting for/against? What are your predictions? Did you see any of the movies this year?