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Waseemy
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Student at Indiana University.
  • Water - Buy it While its STILL CHEAP! 0 comments
    Oct 31, 2009 12:05 AM | about stocks: AWR, GE, ITT, PHO, SBS, SZEZY, UU, VE, WTR, WTS, CCC, PNR, AMN, BWEL, CGW, CWT, DGWIY, DHR, FIW, FLS, HYFXF, IEX, AEGN, ITRI, LAYN, LNN, MIL, MWA, PIO, PLL, SZE
    Water - You can't live with out!

    Most analysts have ignored the conflict when the issue is water. In a wealthy nation like the United States, the problem seems soft compared to poorer, drier nations, which have neither the economic wealth nor technological resources like Kansas or Californians. Functional water is unequally spread over the earth’s surface, so getting enough water has been a large source of political conflict for some time. Worldwide, surface water and groundwater each supply about half of he needed fresh water, but the renewable rate for groundwater is extremely sluggish, about 1 percent per year (Miller, 2002: 296-299). For sufficient health, people require a minimum of about 100 liters of water (26.5 gallons) per day for drinking, cooking, and washing.

    There is a Problem with how water is currently priced:

    Water is made way too cheap by the government and this allows water to be wasted through inefficient output systems. If water becomes a larger problem, look for the price of water to significantly increase. This will cause the price of water to go up which will force farmers/industries to invest in technologies which will reduce their output dramatically (estimated 10-50% farming/ 40-90% in industries and 33% by cities). If output is not reduced then look for the price of water to jump in the oncoming years. The price will continue to go up with continued government subsidies for inefficient practices, more being spent on less profitable areas like agricultural as opposed to industry, not privatizing water supplies which will cause less efficient production, and increased usage without conservatism.


    The consumption of water in most of the world is unsustainable and we are depleting many sources of surface water and groundwater which will probably cause an increase in price.

    Some global water numbers:

    Groundwater makes up 1/5 of the Earth’s freshwater supply.
    Nearly 53% of all US water consumption. 95% in rural areas
    Groundwater is easily depleted
    Aquifers recharge slowly
    1/3 of world population relies on groundwater

    Spread of Water Usage Worldwide:

    Agriculture: 70% (most inefficient use)
    Industry: 23%
    Households: 8%

    Modern Conflict in the U.S:

    California

    -San Joaquin Valley Farmers use 82% of the states water but produce only 2.5% of its economic wealth

    -Los Angeles & San Diego draw their water from California and the Colorado River.

    Conclusion:

    Buy water stocks immediately while they are at a bargain! This has to be one of the easiest decisions I’ve ever made in my lifetime. Despite the weak conditions in the economy, water utilities should expect to see hikes due to large consumption and inefficient/outdated systems that are still being used. Longer term, I see that there will be increased demand by agriculture, industry, and households mostly in the United States. It is hard for me to predict how high water price will go but expect to benefit from inefficient systems for the next 5 to 15 years to come.
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