I’m a gearhead. I like the sound a V8 or V12 makes when I mash down my right foot and those pretty butterflies open up.
But I am not unaware of the external costs of my hobbies. Which is why I found this research piece, titled Energy Subsidies Favor Fossil Fuels Over Renewables, rather interesting. It turns out, according to this one analysis, that the vast majority of federal energy subsidies are for fossil fuels rather than to renewables or new alternative technologies: $72 billion vs $29 billion over the same period. (These are direct subsidies, tax breaks, etc., and do not include things like the military budget).
The question I have is given how wealthy Oil and natural gas firms are, why on earth are we subsidizing them at all?
The vast majority of subsidy dollars to fossil fuels can be attributed to just a handful of tax breaks,
Note: Almost half of the subsidies for renewables are attributable to corn-based ethanol.
Estimating U.S. Government Subsidies to Energy Sources: 2002-2008
Environmental Law Institute, September 2009
Ned Davis Research looks at the earnings picture heading into this earnings season (Note this is based upon Q1 earnings): > S&P 500 vs Median Expected Earnings Growth click for larger chart Calculation is median 12-month percent change in rolling one-year forecasted EPS. Rolling one-year forecasted EPS is a time-weighted average of current fiscal year’s…Read More
The Senate votes 60 to 38 to “advance the legislation.” • Financial Overhaul Passes Key Senate Hurdle (WSJ) • Financial Bill Is Set to Pass After Clearing Senate Hurdle (NYT) • Finance-Overhaul Clears Senate Hurdle, Moves to Final Action (Bloomberg) • Senate defeats filibuster threat on bank bill (Marketwatch) • Wall Street reform: One vote…Read More
UPS lobbyists have buried a short 230-word legislative bailout deep inside the FAA Reauthorization Act of 2009 currently before Congress. It’s worth billions to “Big Brown” at the expense of today’s American economy that thrives on next-day commerce, competitive shipping options and ready access to markets around the world.
I believe the site Brown Bailout is Fedex related.
The July Philly Fed manufacturing survey confirmed the moderation seen in the NY manufacturing figure with a 5.1 reading vs expectations of 10, down from 8 in June and the lowest since Aug ’09. New Orders went negative at -4.3, down from +9 and Shipments, which followed previous orders, fell to 4 from 14.2. Backlogs…Read More
June IP rose .1%, better than expectations of a decline of .1%. The upside surprise was led by the utility component, which rose by 2.7%, where the very warm weather boosted output. Motor vehicle, parts production fell 1.9%, while the production of machinery, computer/electronics and mining rose. IP is now positive for 12 straight months…Read More
I have been covering the US Real Estate market for decades. I grew up with RE (mom was a RE broker and an investor). I have been a housing bear for about 5 years. I recognized the credit bubble and inevitable bust long before most other analysts/strategists/economists did. I mention this just to inform readers…Read More