Proposals that the Federal Reserve enforce a mandate that financial institutions evaluate climate 'risks' represent a blatant effort to distort the allocation of capital away from economic sectors disfavored by certain political interest groups pursuing ideological agendas.
Criticism of Federal Reserve's climate risk evaluation as politically motivated.
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More from John H. Cochrane
What is unsustainable eventually isn't sustained. And the question is, how does it blow up?
If it leads to a debt crisis where suddenly interest rates spike, the U.S. needs to borrow, and bond markets say 'no,' it looks a lot like Greece.
We are not now going to raise taxes in order to increase spending above the baseline.
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