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Speculation among speculators: what's green under Obama?

I mean what'll be profitable, that kind of green. The Wall Streeters and those with money to invest are already gaming what sectors of the American economy look to benefit from the shift in the political winds.
Written by Harry Fuller, Contributor

I mean what'll be profitable, that kind of green. The Wall Streeters and those with money to invest are already gaming what sectors of the American economy look to benefit from the shift in the political winds. One piece in an MSM pub says green tech could do well, steer clear of coal producers.

Here's a rundown of what policies Obama has proposed that would affect greentech. Alternative energy and rebuilt infrastructure are both high on the list of "to-do". Partly because the "American energy independence" idea attracts votes in D.C. But also because the Obama Admin sees this as a way for government funding to produce jobs for the increasing number of jobless workers in America. Some estimates say U.S. unemployment will go from its current 6.4% official rate to over 8% in early 2009.

PRIVATE MONEY--WHAT'S UP?

As you would expect in a time of economic turmoil and uncertainty there are conflicting events in the world of venture capital and greentech finance. One Dutch investment fund is going ahead with backing of VCs and direct investment in greentech. Meanwhile, a South Korean company has backed out of its offer to buy part of a silicon panel plant in Germany. LG is the Korean maker of electronics and appliance and had offered to buy 75% of a Conenergy solar panel plant in Frankfurt. Market jitters made LG change its mind.

And just today it was announced that a Chinese firm has gotten over $130-million in backing from a member of the World Bank Group. The money will go to build a thin-film solar module manufacturing plant.

Here's how greentechmedia summarizes the competition in thin-film solar: "Analysts say that companies buying the amorphous silicon thin-film solar panel manufacturing lines made by Applied Materials and Swiss competitor Oerlikon could put them in competition with thin-film market leader First Solar (NDSQ: FSLR), which makes cadmium-telluride panels."

Also in China, still showing growth of over 8% annually, the economy is slowing down and the government there has just announced nearly $600-billion in spending to bolster the economy. Much of it is expected to go into standard transportation infrastructure. And a large chunk just to keep banks there lending. Sound familiar? But it's a ten-point program and one element of that is "environmental protection." It could be interesting to see what that means, in anything.

So far the world's two biggest economies (US, China) are getting lots of government money injected and I have yet to see one mention of any new nuclear plants in either government's plans.

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