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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?


To: Crimson Ghost who wrote (90292)1/9/2008 10:27:16 AM
From: benwood  Respond to of 110194
 
Yes, as somebody else already said. But it doesn't occur overnight. e.g. my house has heating oil, but I would have to pay for a conversion burner and get a NG line extended to my house, at a cost of perhaps $2500. In my particular area, electric is about 1/2 of oil, so I have been using space heaters for half my heat, and my investment this year was only $100, about equal to my savings per month. Four or five years ago, oil was 40% cheaper than electric here.



To: Crimson Ghost who wrote (90292)1/9/2008 10:35:24 AM
From: Joe Stocks  Read Replies (1) | Respond to of 110194
 
I think so. I think Nat gas is very cheap here.

UNG is interesting and also has decent option premiums for covered calls.



To: Crimson Ghost who wrote (90292)1/9/2008 4:37:30 PM
From: John Vosilla  Read Replies (2) | Respond to of 110194
 
'am I missing something?'

Just a hunch that the game plan will be a large drop in oil prices as an added stimulus to help us get out of recession with the $25-30 terror premium evaporating. The real deal of high inflation often talked about here, sky high energy and gold to several thousand occur on the recovery of the economy and final bottom in most housing markets IMHO..



To: Crimson Ghost who wrote (90292)1/9/2008 5:15:12 PM
From: Archie Meeties  Read Replies (1) | Respond to of 110194
 
Very little substitution can happen quickly at the utility level. If I remember correctly, somewhere under 2% of NG demand can be switched.

The cheapest way to heat a house these days might be electricity.