Top Ethanol Producer Files For Bankruptcy
November 7, 2008 by Eric OKeefe
One of the leading stories of 2008 has been skyrocketing commodity prices and the corresponding surge in land values throughout the Midwest, Great Plains, Southwest, and other mineral-rich areas of the country. Although the bubble has by no means burst, there are definitely signs of a slowdown, particularly given the recent bankruptcy filing by one of the nation’s largest ethanol producers, VeraSun Energy Corp.
VeraSun went public in 2006 just as interest in alternative energies was peaking. But as these stories in The New York Times and The Wall Street Journal indicate, since then it’s been all downhill for the South Dakota-based company, which was trading at 48 cents a share, well of its 52-week-high of $17.75.
Who says Wall Street is the only place where people are making bad bets?
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You don’t need to be as smart as a wall street banker to know that biofuels should be called BIOFOOLS, taking a finite supply (food) and trying to satisfy an infinite demand (fuel) will only break your heart everytime. Pursuing all the current biofuels is like walking ten miles west when you need to be ten miles east. you are now twenty miles from where you need to be. Between federal and state government taxpayers were stuck for 33 billion dollars to subsidize the growth, production and use of 7 billion gallons of Ethanol that’s $4.71 dollars per gallon of this junk besides what we pay for it at the pump. Hopefully Obama is smarter than George Bush and can abandon this crap and fast