Sunday, June 10, 2007

Ethanol; A Less than Perfect Solution?

How ethanol bites you in the wallet

It may help at the gas pump, but the ripples emanating from the ethanol boom are higher prices for corn, fertilizer and the food on your table. Investors, adjust your portfolios.
Ethanol is attractive as a solution to high gasoline prices because it promises a free lunch:

* U.S. farmers would grow corn.
* U.S. ethanol companies would turn the corn into ethanol.
* U.S. consumers would go about business as usual.
* And everyone in the U.S. would be less dependent on foreign oil producers.
* But, repeat after me: There is no free lunch.