The problem with articles like this is that they are very short-sighted. Sure there is a boost to dealers, to steel mills and scrap yards but how long will it last? While dealers have sold a lot of cars, it only amounts to less than 5% of the total number of new car sales predicted for one year. And dealers have collected only about 2% of the rebate mony from the government. With the program ending on Monday, plan on seeing a huge drop off in car buying after that. All the people who were planning on buying a car over the next 3-4 months will have already bought their vehicles, which leaves a big void of buyers through the beginning of next year. That will lead to reduction of car orders which will lead to a reduction in steel demand which will lead to a reduction in scrap demand which puts us right back where we are now, still a very fragile economy on the edge of recovery. I’m not trying to be a doomsayer, I’m just putting forward the picture that the logical part of my brain has painted. Believe me, I’m generally a very optimistic person so this is hard for me to say. So, what are your thoughts?

Well, it’s good to see that the US government is at least helping the US automaker that seems to be thinking well and finding ways to survive on its own – namely Ford. While I have never been partial to any one US automaker over another, I can see Ford making a large surge forward and taking a leadership position once again in the US. Their brand is gaining greater acceptance from the public and news like this that shows their intelligent thinking just helps solidify their future position.

On the other hand, GM (Government Motors) seems to be making all kinds of poor decisions. The choice of a long-time GM executive to take the helm (same mentality as the last few just a different face), the choice for the chief marketing position (another long-time US automaker marketer – why not someone from an industry that knows how to make money?), the canceling of their contract of the only US supplier of platinum and palladium in favor of foriegn suppliers, the ditching of Pontaic, their only brand known for it’s appeal to a younger, hip audience and keeping of Buick and trying to transform it into a younger, hipper brand. I hope they survive but with those kinds of decisions, the deck is seriously stacked against them.

The concept of turning hydrogen found in water into a fuel source has been around for decades. About 20 years ago, there was quite a stir as university researchers thought they had created a fusion reaction using water that was going to be the safe, no emmisions energy source. Now, a company called BlackLight Power has developed a method for generating heat by moving electrons in hydrogen atoms to move closer to the positely charged nuleus. If they can do it commercially, it will be a truly gigantic leap forwrd. I’m keeping my fingers crossed.

This article does a pretty good job of describing some of the difficulties plastics recyclers have faced over the past several months. It also points out how much plastic scrap goes to India. Which raises the question of whether it is environmentally sound to send so much plastic so far away. Let’s hope so.