Hi Don,
Re: Ray, do you remember our Ides of March concern??
Vaguely, but I've moved on. Now my concern is the the dog daze of summer. When we will see, in the CA energy market, the California ISO trying to fill in the gaps in Mws at spot prices that will be in the thousands of dollars, rather than the hundreds as they are now. Frankly, we have one heck of a mess on our hands in the energy markets, and largely it is due to a tug of war between sections of the country, with the energy basin of Tehas and OK appearing to have the upper hand. I expect to be hearing about a lot worse things than the temporary inconveniece of commuters and house fraus in the coming months in California. The key to the issue is FERC, and frankly, I don't see them as being sympathetic to the high tech revolution coming out of California. Except perhaps literally, as corporations make decisions to move manufacturing operations out of state, in order to avoid the punishment of interruptible power supplies and unscheduled outages. What a mess.
While the chatter about distibuted power (i.e. campus based rather than grid based) is heading the right direction, there is hardly a substantial effort underway to provide a coherent solution.
My main concern right now is that the Fed appears to be pushing on a string with its rate reductions. In spite of reassurances from the Fed and many economists, I believe we are in a recession and it will be much like 1980-2 and 1990-1, i.e. the Fed will only announce the recession six months after its commencement. |
