Is your Boiler Room Powered by Ethanol?
We keep writing about how corn ethanol is a subsidy business, not an energy business, and that it takes more fuel to grow the corn and make the fertilizer and move it to the plant than you get out of it in useable fuel. We learn also from the Wall Street Journal that because of its chemical composition, it cannot be transported in the existing pipline network so it will have to be trucked. That isn't stopping a gaggle of IPO's from companies like VeraSun Energy, Hawkeye Holdings and Aventine Renewable Energy Holdings. Robert Wilder of the Wilderhill Clean Energy Index says "The fast growth of the ethanol industries over the next few years is going to face many obstacles, including the difficulty in transporting it, ramping up corn production, and the difficulty in splash-blending ethanol as a product for the consumer." Guard your wallet and look for real solutions, not panaceas. And watch ::Boiler Room. via ::Wall Street Journal and ::Paul Kedrosky Read also R-Squared.