Weather Report: Money, Power and “Why, What & How”

POWER: EnergyTechStocks.com on July 24 did a very interesting interview with a leading Wall Street electric utility analyst, Dan Scotto. Mr. Scotto predicts a doubling of U.S. utility rates within five years due primarily to U.S. failure to keep up with the demand for electricity and an aging, less efficient, power generation and distribution system.

Also noted in Mr. Scotto’s interview, was his observation that new power generating technologies ( such as wind power ) fall short of coal and nuclear power’s reliability. These new technologies are currently more costly too, he notes.

MONEY: A recent, 7/25/08, article in money news,newsmax.com spoke to an interview with the manager of the world’s biggest bond fund, Bill Gross, concerning the companies Fannie Mae and Freddie Mac.

Mr. Gross’s view is that these huge companies ( together comprising about 50% of the U.S. mortgage market) would be essentially helpless financially without help from the U.S. Treasury. He goes on to say that he wouldn’t even consider investing in Fannie Mae or Freddie Mac stock without Treasury backing.

Mr. Gross makes two very interesting predictions :

1. Housing prices will drop 10-15% in the next year.
2. The U.S. will see a “ $1 trillion deficit to support the U.S. economy” within three years.

“ WHY, WHAT, AND HOW “

WHY PREPARE? At its simplest : The prudent home prepares for the maintenance and enhancement of its well-being and its survival.

WHAT? Begin at the beginning. Begin with the basics. Decide what it is that you’re going to prepare for and then decide how you’re going to prepare.

Again we here at PrudentHome highly recommend the free, expanded ( now over 200 pages ), and available from FEMA : “ Are You Ready ? An In-depth Guide to Citizen Preparedness “ . It’s a good , basic survey on preparedness for a number of natural and man-made disasters.

FEMA @ 1-800-480-2520

Publication # H-34, “ Are You Ready ? An In-depth Guide to Citizen Preparedness “

HOW? A few weeks ago here, we recommended beginning preparations for a prudent home with a three day supply of food and water. This is a simple, basic level of home preparation that almost all families are capable of. It’s our view that you begin with the basics and build on them, pairing growth in “ essentials “ with a growth in skills. Our next recommendation is for at least one family member to take a Red Cross first-aid course and share that knowledge with other family members.

This coming Friday, August 1 , we’ll suggest some other sources and resources to aid the prudent home in reaching a more secure condition. Hope you were able to read Sharon Astyk’s article of July 24 in Energy Bulletin.

Meanwhile, keep your eyes on the horizon.