TUESDAY JUNE 8, 2010

Energy Reality Check

The environmental disaster in the Gulf of Mexico has reignited the sorely needed debate on energy policy.  In the aftermath of the Gulf spill, President Obama has renewed his quest for a "Cap and Trade" tax on hydrocarbons, implying that the higher cost of oil, natural gas and coal will fuel research and development in "alternative" energy sources.  By all means, we should energetically (pun intended!) pursue all forms of alternative energy, whether it be solar, wind or algae.  However, the reality is that there is no alternative energy source that is economically viable to replace oil at the moment, or for the next ten years for that matter.  How anyone can think that taxing perhaps the most important economic inputs in a weak economic environment is good policy is beyond me.  Unless one's goal is higher unemployment and weaker economic growth!

POSTED AT 1899-12-30 14:27:00.0

KEN ENTENMANN, CFA
SENIOR VICE PRESIDENT AND
THE DIRECTOR OF INVESTMENT MANAGEMENT SERVICES

Ken is a Senior Vice President and the Director of the Trust and Investment Services at Alliance Bank, N.A. He has 23 years of investment experience and oversees the management of assets totaling $1 billion. He holds a B.S. in Applied Economics and Business Management from Cornell University and an M.B.A. from the William E. Simon Graduate School of Business Administration at the University of Rochester. He has also earned his Chartered Financial Analyst designation. He is a member of the Executive Committee of the Trust Division of the New York Banker's Association. He is also a director of the Central New York Community Foundation.

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