Gene's Footnotes

I have never been impressed by the messenger and always inspect the message, which I now understand is not the norm. People prefer to filter out discordant information. As such, I am frequently confronted with, "Where did you hear that...." Well, here you go. If you want an email version, send me an email.

May 11, 2012

Caveat May, 2012: Economic Tremor Coming



You don't need any explanation. Just be aware that the abundance of inexpensive natural gas is going to have a cascading affect on our lives. 


Gas producers will see their valuations tumble, prices drop. Several massive producers will likely go bankrupt - not for a want of gas but because the prices drop and the market will punish bloated companies.


Equipment for producers is already backed up. Individuals and businesses will jump out of gasoline quickly.  


You will see, soon enough, the beginning of a new business that retrofits cars to natural gas. Note most newer Japanese and European cars are ready for natural gas. 


Things will move quickly. Energy prices will drop significantly for a few years (until the natural gas becomes part of the fungible world economy.)


Each of us may want to consider readjustments.

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