Thursday, November 20, 2008

With the price of oil falling, Ethanol plants must be having a difficult time. Corn prices still hovering at $5.36 a bushel. This means the raw material cost per gallon of Ethanol is still over $2.75 a gallon and this is before the cost of fuel (~110 btu’s), labor, financing and credit for by products. I expect to see many of these newly built Ethanol plants go bankrupt.

If the auto industry (Big three) gets bailed out by the taxpayers, I would expect more industries such as Ethanol to ask for bailout money.

This bailout “mantra” is snow balling into a real mess. When I was asked by Bob Caylor of the News Sentinel my thoughts on the Bailout last September, I said it was a big mistake. It would set a terrible precedent. Congressman Souder was wrong to vote for the first bailout. The US Treasury is changing the original scope and intention of the bail out our representatives voted on. By doing so the congress should repeal the bailout legislation. Will Congressman Souder vote to bailout the Big Three?


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