The plan removes regulatory barriers to building new power plants, establishes the authority for new powerlines and pipelines, opens up new acreage to to oil exploration, provides tax incentives for hybrid energy efficient automobiles, more research dollars for alternative energy sources and lastly instructs the EPA to make sure its regulations are productive. These are long term solutions to long term problems. When questioned in detail about specific energy policy proposals, such as opening the Alaska National Wildlife Refuge for oil exploration and increasing nuclear power production, the public was less enthusiastic than investing in new resources such as solar and wind power and fuel cells. All we have to say is move to California where energy consumption is less per capita than any other state. You can only conserve energy so much before you inhibit commerce and reduce the quality of life.
Blackouts are the ultimate in conservation.
So much for the Golden State. Inflation scared Wallstreet on Friday. There is very little to fear in the way of inflation. Cambridge believes that there will be at least a 25, but more likely a 50, basis point cut in the discount rate on May 15. As we stated last week, the market got ahead of itself and hit overhead resistance.