Weather for sale
Friday, August 13, 2010
Human ingenuity knows no boundaries really, the desire for many as well. We are therefore able to sell or buy literally anything.
Perhaps most of us are trying to somehow insure against unforeseen events. Actually because of, let's say, to protect our investments into life. The same, of course, try the various companies that may be affected. Now when some insurance companies don't want to enter certain risky insurances and the insurance don't bring money, it is better to turn to the market.
Therefore, companies whose business is directly dependent on the development of weather, dealing with financial derivatives on the weather. Dealing since 1999 in the United States, in Europe, first appeared in 2001. They're freely tradable, so it is possible for anyone to simply engage in this trade. There is no need to prove any damage caused, it is purely speculation. So the weather is actually for sale.
Individual derivatives are more like to apply on our small market. They conclude business directly with the market maker. Solar power plants grew like mushrooms after rain in the past throughout the Czech Republic. I'm not under any illusion that their makers cheered so much energy from renewable sources. They used generous subsidies for the constructions, moreover, with the prospect of higher government-guaranteed revenues. Weather financial derivatives are then just another way to earn lots of money. Just one good deal and the account bold again.
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