New Fed Chairman Ben Bernanke has made more sense in one hour than Alan Greenspan did during his entire tenure on the Federal Reserve Board. The thing I like about this guy is he seems to be a straight shooter.
Bernanke made comments on oil prices, and those comments have yet to hit any news wire. He basically said that oil prices will remain high for quite some time, and prices need to remain high in order to achieve the nation痴 goal of being less dependent on foreign oil in the future.
To paraphrase, he basically said what I have been saying all along. My belief is that Americans only learn their lesson when there is pain involved. What incentives would the public have to buy alternative fueled vehicles if energy prices dropped substantially? The answer is, none. But, if you hit the consumer in the pocketbook hard enough, they will eventually cry Uncle.
It is unfortunate that this is the only way people learn, but it痴 the truth.
This being said, the automakers stand to profit handsomely in the years ahead as the nation transforms itself into more fuel efficient ways of transportation. Think about the number of alternative fuel vehicles that will replace the gasoline vehicles of today. The changeover could bring massive profits to the ailing auto industry.
Despite all the negative news, GM has unveiled its new line of alternative fuel vehicles at the Chicago Car Show going on February 10-19. Some of the alternative fuel vehicles include the 2007 Chevrolet Avalanche, 2 hybrid SUVS including the 2007 Saturn Vue, and the 2007 Chevrolet Tahoe. GM has also begun delivering hybrid powered buses, and they are currently in use in Aspen-Snowmass, Charlotte, Shreveport, and Ft. Wayne. The demand is definitely growing.
I think you'll find that the screams for GM's demise were definitely pre-mature. I think you'll also find that billionaire GM investors Kerk Kerkorian is not a billionaire by luck.
