We had the internet bubble and the real estate bubble and now, there is the ethanol bubble. Recently, I ran some numbers on ethanol and to my amazement realized that it is – too use a catch phrase from the environmental world -- not sustainable. Turning food into fuel is just plain silly; and when oil prices come down the ethanol bubble could pop big.
I ran did a little research and found some numbers:
- 47% of the Mexician' diet is corn
- it takes 2.4 pounds of corn a day to feed a hungry person
- it takes 22 pounds of corn to make one gallon of ethanol
- there are 42 gallons of refined gas in one barrel of oil
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Closing Bell: Torch Passing on a Friday Rally
