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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: Bearcatbob who wrote (144042)	1/22/2011 1:35:07 PM
From: teevee	Respond to of 206093

Perhaps money should go to things like sewers and roads and not things like ethanol and windmills. Misallocation of capital for decades has price that is now coming due. In the '50's and '60's, in a low interest rate environment, corporate and gov't leadership had the vision to overbuild utilities to accommodate economic expansion for 3-4 decades. It was achieved and industry and consumers enjoyed low, stable energy costs. When capacity was reached in the early 90's, and in an environment of high interest rates, the solution was small, gas turbine power generation, when and where needed on an incremental basis. I see THE largest change in mindset, and corporate and financial management, is taking a short term view to the next quarter, instead of balancing that with a long term view, renewal of production assets, investment in human resources and a fat balance sheet to get through downturns. This was destroyed by the advent of "green mail", where companies could be dismantled for short term gain, creating smaller business entities with over leveraged balance sheets that blew at the first economic down turn.

To: Bearcatbob who wrote (144042)	1/22/2011 1:54:56 PM
From: Sweet Ol	4 Recommendations Read Replies (1) \| Respond to of 206093

OT: BCB, F.A. Hayek, in his 1930's book, The Road to Serfdom", explained why central planning always leads to mis-allocation of capital and what will result. Much of what he wrote about then is even more true today. His thesis is that central planning leads to socialism which ultimately must have a dictator. He was writing about how Germany progressed to Hitler. It is a scary read, but I recommend it highly. If you have a Kindle it is really cheap. Blessings, JRH