Tuesday, July 11, 2017


Let's keep beating this drum. I first wrote (not published) about Tesla in 2013 or 2014 and then again published in this blog in August of 2015. Two years ago.

At that time, Tesla's market cap was $30 billion, ridiculous by any measure. Last week it popped to over $50 billion and passed General Motors in the total value of its stock.

Read the old posts here: http://bourbonanddad.blogspot.com/2015/08/tesla-and-tesla-redux.html

Still ridiculous, still resembles a tulip bulb that is valued at more than the ship that delivered it.

Maybe our markets are just not that efficient at times.

As Lee points out in passing along this article, http://www.nationalreview.com/article/436228/wind-energy-subsidies-billions Elon Musk is definitely an expert at acquiring government subsidies. The wind energy business has been subsidized by government to the tune of $176 billion. Watch out below--of that amount, $164 billion is in the form of loans and loan guarantees. Sound anything like Ginnie Mae and Fannie Mae and the 2008 crisis? 

That $176 billion is about $2,200 for every family of four in this country. Every last man, woman, child, transsexual, illegal/undocumented immigrant and politician out there. The info is hard to come by, but that amount is about half the estimated losses in the subprime mortgage crisis, but the total effect on the economy was the loss of value/wealth in the $30 trillion range.

Since we are just about out of things to worry about, worry about wind energy subsidies, the failure of all those loans/loan guarantees and the fallout that happens when that type of thing ripples through the economy. Oh, and don't forget when Tesla's stock falls back to earth...or the dark side of the moon.

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