The proposed $700 billion bailout of Wall Street failed to pass the US Congress last night. Across the world disappointed investors are now fleeing stock markets as the global economy teeters on ruin.
With the likely arrival of more austere times it is unlikely national governments will have a lot of time or interest in environmental issues, including global warming.
The belief that Australia may be somehow immune from hardship because of our mineral wealth and proximity to China is likely to be challenged, along with the idea that we can forge ahead with an Emissions Trading Scheme. Indeed it is resource shares that have been most affected this morning.
During this period of intense market instability, it is likely to be increasingly difficult to justify any additional stresses to the economy particularly one based on the idea of trading a commodity, carbon, for which there is no real market.