Jenson Daily Green Piece
"Traders Intuition, More on Bubbles, Government Interaction with Green Market, Electric Vehicles, Entertainment Industry Obsession /w Being Green, Feedstock Biofuels, Jatropha's Potential and more!"
Date: 4/14/2010
My main column today highlighted some of my offbeat humor and candor as I speculated that evidence for the coming market Bubble was proven by the International Bubble Convention at the Exposition Center next to Disneyland (in Southern California). We often miss the signs that stand right in front of us and this is one of the times that seriously force us to pause in order to take note. The notion of intuition as an influencing factor for the seemingly unexplainable success of some traders is a proven fact. Phrases such as, “I felt the strong market today…” is quite common to heard coming from trading desks and a sampling of the vast array of other traders. Some would argue that a Bubble convention is merely coincidence but we do not believe in coincidence. Advanced Physics has created some interesting mathematic proofs for various hypotheses relating to String Theory and Universality Theory. Case and Point the first news story I read off the wires this morning was about a Congressional Brief that Parks and Empty spaces were important elements of Aesthetic, Environmental and Sustainability in dealing with Urban Sprawl. The PR was released by ASLA the Professional Association of Landscape Architects which evidently has been in existence since approximately 1890. Of course, the Government makes extremely obvious statements but we were caught off guard by the use of Sustainability. A rather large word for a Congressman we would venture, but here clearly a third ingredient for a coming Market Bubble, government recognition. This recognition always goes far beyond lip service. In fact, it seems in the vast majority of Bubbles, the government through a lack of regulating evolving business, beneficial tax treatment or financial incentives for a given sector creating an artificial competitive advantage. This causes a skew in pricing as competition is eliminated or forced to give up exurbanite percentages of market share.
In the case of a coming Green Bubble we believe that a radical shift in market share could be a very good thing for the environment at the peril of the fossil fuel behemoths. Honda and a myriad of smaller manufacturers have functioning electric scooters that could well avert a global disaster if petroleum powered vehicles were used to supply the exponentially increasing demand for transportation in third world countries. Ford, Honda, Toyota and Tesla now offer high performance electric vehicles that are quickly replacing a huge portion of the gas powered vehicles throughout the world. In Los Angeles, Larry David from Curb Your Enthusiasm explores the comical nature of the Entertainment Industry’s obsession with being Green. For anyone who travels in Southern California the sheer number of battery powered vehicles on the road is nothing short of staggering.
We have been following developments in the biodiesel and alternative fuel space for some time now. There have been mini bubbles that developed around the hype of ethanol and more recently hydrogen powered vehicles. Any biodiesel that is comprised by feedstock consumable by humans is destined to fail as increasing population demands in combination with decreasing arable acreage is creating huge inflation of related commodity prices. We can’t help but comment, “Remember the Hindenburg…” whenever we read about promising hydrogen technology. The radically volatile nature of hydrogen causes us great concern as it is nearly impossible to safely transport and we shudder to think what might happen in a serious automobile accident. Jatropha is the most promising biodiesel in our opinion. An inedible bulbous seed that grows on a large plant composed partially of nitrogen and native to semi tropical regions throughout the globe, Jatropha is fast becoming the biodiesel of choice throughout the EU and worldwide. We will analyze the biodiesel industry in a coming piece but note that close attention should be placed on this amazing plant. Jatropha is but one attractive answer to the pressing question of what will become with the greatest per unit polluters on the road today…commercial trucks. We truly did not believe that we would see battery technology capable of generating the power needed to move a 25 plus ton load. Amazingly, we have begun to see a few incredible companies that already have such vehicles in production.
Have a Green day… |
