US economy is in midst of one of the biggest turmoil’s in the financial sector. The administration is proposing a 700 billion package to ease the banks of their bad loans. So what does this mean for investment in Greentech ? Going by the present economic trends , jobless claims are at a high and more importantly the oil price is slowly moving up on the assumption that the bailout may actually boost up the economy. This bailout may end up benefiting the big banks , who were hit hardest by the housing bubble and that too marginally. However just as the war on Iraq failed to find any weapons of mass destruction, this bailout is unlikely to do the economy any real good. It is however probable that increasing oil prices may increase focus on Greentech , but the liquidity crunch may make it difficult for the greenies to pursue their research.
As Jeff Sparrow editor of Overland remarks “ President Bush and his supporters can find $700 billion to spend on a war of choice. Almost overnight, they can stump up an equivalent amount to stop Adam Smith’s invisible hand from throttling their cronies in the banking sector. Such extraordinary sums, if devoted to public transport or alternative energies or scores of other socially useful outlays, would go a long way to ending America’s dependence on carbon fuels “
