The models are fine until government changes the rules or that the underlying banking system is bankrupt.
However, it allows for other great theory and speculation that have so many riled when addressing derivatives. Obviously the formulation and practical exercise of writing some forms of financial vehicles is beyond paper and pencil...
What any good model (today) should and does allow for are elaborated means of the nature and cost of energy basis to consider the ecological model of converting the energy system to go green.
Speculation in energy futures that peak prices beyond the ordinary while forcing a conversion to alternative energy means is taking hold. In the simplest sense the forced escalation of oil causes greater and greater investment in new energy markets and at the cost of the basis from which the old energy market is settled to exist under.
In time there will no longer be any choice but only to use alternative energy. Smart grid technology is a worthy example of utilizing the power grid to distribute only the energy required and thereby reducing transmission cost.
Wireless technology is likely the most conservative model there is considering the energy required to run a cell phone as one example in an emerging decade of low powered devices that use a fraction of the energy its counterpart once required.
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The models are fine until government changes the rules or that the underlying banking system is bankrupt.
Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.
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