Sometimes during a crisis the United States rushes toward a solution, only to find that the action was not only not a panacea, it was, in fact, ill-conceived and harmful.

The late British Prime Minister Winston Churchill alluded to this when he noted that, "In the end, America will do the right thing . . . after she's exhausted all other possibilities."

That may very well be the case with corn-based ethanol.

Initially heralded as a renewable fuel that reduces foreign oil imports, it now appears that a powerful coalition is building against corn-based ethanol -- a problematic energy source, in economist Glen Langan's interpretation.

A ' tax dollar not well spent'

The U.S. Government (which means you, the taxpayer) heavily subsidies ethanol from corn production via payments to farmers, Langan said. "The tax dollar is not well spent, either from an environmental standpoint or an energy policy standpoint," he said.

Suntech Power Holdings (NYSE: STP) shares are trading higher today on reports that the Japanese Ministry of Economy, Trade and Industry (METI) is considering a resumption of subsidies for solar panel makers beginning next year to maintain its lead in the industry. METI will be discussing subsidies at its meeting this week. This could be a good sign for the solar industry and STP. If you think that the stock won't fall by too much in the coming months, then now could be a good time to look at a bullish hedged trade on GIS.

After hitting a one-year high of $90.00 in January, the stock hit a one-year low of $28.19 in March. STP opened this morning at $42.01. So far today the stock has hit a low of $41.12 and a high of $42.69. As of 12:35, STP is trading at $41.85, up 0.54 (1.3%). The chart for GIS looks bearish but improving slightly, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.

For a bullish hedged play on this stock, I would consider an August bull-put credit spread below the $30 range. A bull-put credit spread is an options position that combines the purchase and sale of put options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 7.5% return in just two months as long as STP is above $30 at August expiration. STP would have to fall by more than 28% before we would start to lose money. Learn more about this type of trade here.

STP hasn't been below $30 since March and has shown support around $38 recently. This trade could be risky if the company's earnings (due out in early August) disappoint, but even if that happens, this position could be protected by the support the stock might find between $35 and $40, where it bounced over the past month.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in STP.

Growth is slowing in all regions of the world, and inflation is rising, but the International Monetary Fund's No. 2 person in charge says a repeat of the 1970s stagflation period isn't likely.

IMF First Deputy Managing Director John Lipsky said the "inflation speed-up must be taken seriously as it creates potentially significant challenges to economic stability," Bloomberg News reported Thursday. However, Lipsky added that a return to 1970s-style stagflation isn't likely, but it cannot be totally ruled out.

Oil, commodity-rooted inflation

Further, Lipsky underscored that the current inflation rise is being driven by a fundamental increase in demand for commodities, primarily oil, and to a lesser extent by supply constraints around the world, Thomson Financial reported Thursday via Forbes.com. Hence, the recent price increases are likely to prove finite, Lipsky added, unless these items keep rising more rapidly than other items.

Economist David H. Wang told BloggingStocks Thursday he agreed with Lipsky's categorization of the most-recent rise in inflation but added that government subsidies may prevent a pullback in commodity prices, especially oil. Classic economic theory holds that as the price of a good rises, people will use less of it. However, governments in China, Venezuela and the Middle East, among other nations, subsidize gasoline/fuel, lowering its cost, which discourages conservation, Wang said. The United States does not subsidize motor fuel at the federal level, but individual states do subsidize heating oil/natural gas for low-income citizens.