A Twist On The Spill

I thought that this "larger view" perspective on the BP oil spill was interesting.

"The specifics of the disasters are, of course, unpredictable.  But it's reasonable to expect an increasingly negative social mood to bring about a daisy chain of incompetent decision making, corner cutting and the willingness to assume bad risks which will result in tragic accidents.  What may turn out to be the 'biggest environmental disaster the country has ever faced' fits perfectly with the resumption of the bear market that will end as the biggest in the lives of all who survive it."
Steve Hochberg, Elliott Wave International

The Breakup Of The Two Dynasties?

As usual, I'll stray from the typical "known" perspective of a recent event.  We all know that the BP oil spill is a tragedy of epic proportions.  We know that BP's CEO will be jobhunting soon (not really; he'll get a tremendous parachute; next thing to be mad at).  We all know that the politicians are seizing the moment.  Jindall won't leave the beach.  Nungesser has elevated his political ambition.  Obama is the fall guy (you know he blew up the levees).  Palin is paralyzed with her "drill baby drill" speech.  But, I digress.

One of the most interesting developments is the intense anger at BP because it is a British company.  I've heard so many sheeple proclaim "why is a foreign oil company drilling in our waters?".  Now you ask?  Because they and many others have been doing it for years.  We need them to because we need their investment capital. 

Could this event be the beginning of a rift with our "next of kin"?  Our co-invasion buddies?  Xenophobia against our native homeland?  During the contraction we herd with those like us and move away from those that are different.  Remember, keep an eye on the European Union.  It will come to a catastrophic conclusion.  Mark my words.

Black Swans and Black Gold

Another "Black Swan" is heading for Louisiana. Just when my home state was really starting to feel it's "mojo" again. Just a few weeks ago, the New York Times declared that the New Orleans comeback was for real. A Superbowl victory and a new hot HBO show called "Treme".

The oil spill off the coast of Louisiana is growing daily with no confirmed short term solution. The Valdez had a finite volume of oil on board. This well is flowing from an oil reservoir that could produce for forty years.

Last Sunday I was watching the memorial for the deceased miners. Within one week, another energy catastrophe is upon us. The only good thing that can come from these events is that our nation starts a dialogue on an energy policy. The oil/gas industry has discovered a staggering amount of natural gas over the past five years. Natural gas powered eighteen-wheelers and government vehicles sounds like a "no brainer". The coal lobby might just be too powerful. We'll see. Some proactive behavior will be required.