shakran

So why would you want to invest in the scam?


Krispy Kreme almost went under because they expanded too fast. And their product is tasty, and desired by many people. The very fact that so many ethanol plants are going up at once should make you nervous.

No, it hasn't. Do your research. Adding ethanol to american fuel has required us to bypass the usual fuel infrastructure (pipelines) in favor of trucks because ethanol cannot be introduced into a pure-gas pipe. Because of this, costs for transporting ethanol have gone up. You must also take into consideration government subsidies. currently the federal government gives ethanol a $0.51 per gallon tax credit. There are more gimmes available from individual states. If I make a product that costs me $5 to make, but I sell it for $4 because the government gives me $2 for every copy, that's still not a viable product. If the subsidies dry up (they will) the industry will sink.

Would you care to cite sources on this, or is this just a wild-assed guess? Hint: If the source is the ethanol industry, that might not be a viable source.


Short term, yes it does. Once people stop buying it, those jobs will go away, and those who invested in the plants will find that the banks want the mortgage payment whether or not the plant is selling any fraud-juice.

So what? Why do you, as a private investor, give a crap if it raises farm income unless you're a farmer? Are you investing to make money, or to feel good about yourself?

[quote]decreases the amount of energy we import, [/qutoe]

Source?


Where are you getting that?

And the President just murdered millions of people by denying medical science the ability to research their diseases. not all legislation is a good thing.

that's comparing apples to aardvarks. Power plants do not generally fuel cars. Ethanol plants do. ethanol releases fewer of some pollutants, and more of others, while wasting a crapload of energy to make it. It is a non-workable fuel, at least with current technology.



And back to my previous example, everyone predicted Krispy Kreme would kick serious ass cross-country by opening so many stores so fast. And why shouldn't they? They make a delicious product. People stand in line for hours when a new store opens. They're the only fast-food donut store with a freakin' FACTORY in every store to keep up with demand. This should have been a solid gold investment opportunity. Instead the company damn near went under, against all predictions. It's slowly recovering now, but it was a very near thing for awhile. Predictions can be wrong, especially when there are unconsidered factors (such as the dirty little secret that ethanol is a scam).


1) That's like you or me putting fifty cents into Pacific Ethanol.

2) He's a computer nerd. He's not a fuel expert.

3) Even rich guys can lose big. Remember when Bill lost over forty BILLION dollars when MS stock fell?



Bottom line? Invest if you want. But you're taking a big risk, and I think you'll lose more than just your shirt.