
We all know the problem with industry sector bubbles, and when they burst it effects us all. We remember all too well the Dot Com bubble burst that crushed Silicon Valley. The sector clearly got away from itself with massive runaway nonsense. People starting a website basically and taking it public and walking away along with their Vulture Capitalists with 10s if not 100s of millions of dollars only to do it again, and again, with no reality behind it.
Sure, many viable companies came out of it, even some dot coms that that actually eventually started making real money, but we watched that irrational exuberance and runaway profit taking of nothing but hot air, so that balloon was ready for a fall, with everyone left in the basket, but up, up and away until the very last day.
The Housing Bubble, got to be completely insane, in the same runaway fashion and look where we are today, as that effected not only our nation's financial system, but the entire world that was naïve enough to believe that the bundled mortgages were as viable as their AAA stamps. Folks if it sounds too good to be true, you had better check six, but not that time, no once again, they flew straight and level into the Sunset.
Now we are building a new bubble, a beautiful bubble built on a beautiful promise, one of clean energy, isn't that nice and worthy of our funding? Sure and so was an Internet that will supply us every our every desire, or the wonderful concept of home ownership for everyone, regardless of their ability to repay and a real estate investment that would go up forever?
Folks, I run a Think Tank, and we have been reviewing business plans, prototypes, concepts, and ideas for new energy generation schemes involving clean energy exploitation. Most of them will never turn a positive ROI, but they all seem to be getting funded, but why? If they do not make sense, why is all this money flowing in this direction.
We've recently seen many ethanol plants belly up and many new projects die on the vine for lack of construction credit. Why is this happening? Well, the plants are not viable, and cannot return an investment unless they are subsidized and/or unless gasoline is selling above $3.45 a gallon.
Well, look what we are doing now with alternative green energy projects, pouring money into them, subsidizing them, even penalizing other more viable energy systems that work and have worked for years. Folks, we are building a bubble, a beautiful bubble, one where a perfect utopian life can be had, one that will last forever – well as long as we keep pouring exponentially more money into it.
Will we ever learn?
By Lance Winslow
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