Meet The $1 Trillion Weather Modification (Chemtrails) Market

The Weather related gambling market has grown to a whopping $1 trillion.

It was invented back in 1997 by Enron, Koch Industries, and Aquila Energy. In 2000, the market had grown to $3.5 billion. People were starting to try and cheat the system, as reported in a paper done by Penn State U for Wharton Hedge Funds, in 2000.

Weather derivatives are also different from insurance. First, there is no need to file a claim or prove damages. Second, there is little moral hazard, although there is some, as when someone with a long precipitation position attempts to seed the clouds. (Don’t laugh – it has happened!)

http://fic.wharton.upenn.edu/fic/papers/02/0242.pdf

By 2011, Nearly the entire corporate world has climbed on board with the weather related derivatives market.

Risk Holder	Weather Type	Risk
Energy Industry	Temperature	Lower sales during warm winters or cool summers
Energy Consumers	Temperature	Higher heating/cooling costs during cold winters and hot summers
Beverage Producers	Temperature	Lower sales during cool summers
Building Material Companies	Temperature/Snowfall	Lower sales during severe winters (construction sites shut down)
Construction Companies	Temperature/Snowfall	Delays in meeting schedules during periods of poor weather
Ski Resorts	Snowfall	Lower revenue during winters with below-average snowfall
Agricultural Industry	Temperature/Snowfall	Significant crop losses due to extreme temperatures or rainfall
Municipal Governments	Snowfall	Higher snow removal costs during winters with above-average snowfall
Road Salt Companies	Snowfall	Lower revenues during low snowfall winters
Hydro-electric power generation

New participants
In many ways, the weather market represents a frontier of convergence between the insurance market and the broader financial markets.  As the market grew, it quickly attracted involvement not just of other energy traders but also of insurers and reinsurers, investment banks, and hedge funds

http://www.climetrix.com/WeatherMarket/MarketOverview/