Market Fears:It Could Be a Long Way Down

Major global markets largely continued their decline on China and oil collapse fears Monday,although US stock exchanges were closed for the Martin Luther King,Jr. Day holiday.The one exception was the Shanghai Composite Index,which rose 0.47%.The Japanese Nikkei slumped 1.45%,approaching bear territory along with the Australian ASX.The Hong Kong HSI tumbled 1.45%.In Europe,the German DAX fell 0.25%,,while the London FTSE dropped 0.42% and the Paris CAC 40 lost 0.49%.In the commodities space,light sweet crude was down 1.63% and Brent lost 0.55% in anticipation of Iranian production re-entering the market.Natural gas was cheered,however,by the arctic outbreak sweeping into the US East Coast,rising to 2.124,up 1.14%.Gold was virtually flat at 1088.90 an ounce,just a hair down at -0.17%;but silver climbed to 13.94,or 0.32%.
I think there's much more to go,said Bill Fleckenstein,president of Fleckenstein Capital.My real fear is,there's going to be a dislocation,when the market breaks hard and fast.So far this year,it's been sort of a rolling dislocation.I think it's entirely possible to take out the lows of last summer,accelerate and go lower until such time as the Fed panics.*
Intel has been held up by slowing data centre growth.They've got tons of capacity in the place.If people start to waffle over growth,they'll really be in trouble.The world economy is weak.It's a very potent mix and the Fed can't help unless the market goes much lower-so guess what?The market's going much lower.This is much worse than a market correction.I think all these things are in a feedback loop and it's going to get much worse,Mr.Fleckenstein warned.*
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Public Utility Commission:Prepare Now For Winter

It's best to take proactive steps now to manage your energy usage this winter,says the Pennsylvania Public Utility Commission.Turn down the thermostat to 68 degrees F.Change dirty filters that restrict air flow.Seal leaks around your home.Turn down the hot water heater setting.It's never too early to prepare.Remember Hurricane Sandy two years ago and the rare October snowfall called "Snowtober."*
After last year's Polar Vortex,the PUC changed its regulations.They now require more transparency from electric suppliers.The contract has to be in plain English;must state when the contract ends;any variability in the rate.As of December 15,the ability to quickly change from one electric or natural gas supplier to another will change from up to 60 days now,to three business days.
Make sure there is no cancelation fee;whether it is a monthly or a yearly product;if there is a cap.Never be afraid to call and ask the PUC.Many utilities have a full time weather forecaster to help them make power trades.Natural gas is now in the 3.50-4.20 range,which is very good for customers.Fifty percent of Pennsylvanians now have gas heat.The payback from switching to it may now come in less than two years.Unfortunately,there is now a lack of infrastructure for natural gas in many rural areas-and even in some urban ones.The cost to run a gas line to your home can be in the thousands of dollars.It may be possible for a community to make a joint request for gas service to a utility,thus lowering the cost per household.*
We have fined a number of suppliers for false marketing and bait and switch practices.We have assessed multi-million dollar fines against them.The ultimate penalty is to pull their license and put them out of business,the PUC explains.*
Two-thirds of a bill is in the generation supply charge.Now more than ever,it's critical for customers to shop around.Don't pay the bulk rate when you can get a good deal.*
Other remedies for high utility bills include air-sealing in attics and basements;3M window covering,which is considered the best cost-saving in the industry;and weather-stripping doors,the PUC points out.

Alaska's Buried Treasure

According to the U.S. Geological Survey,Alaskan waters cover more hydrocarbons than was previously understood.It had been supposed that the Chukchi Sea area held 30 billion cubic feet of natural gas.Now the USGS thinks there is far more natural gas there.They estimate the Chukchi field contains 30% of the world's undiscovered total,or 1.6 trillion cubic feet.As well,some 4% of the world's undiscovered oil is now believed to be under Chukchi-about 83 billion barrels.
The Chukchi Sea is off Alaska's northwest coast,roughly between Point Barrow and the Seward Penninsula.It is bisected by the International Date Line,with Russia being on the other side of the line.The U.S.Congress has yet to approve exploitation of the resource,while Russia is going ahead with the activity.Critics of Congress point out that alternative energy is still in its infancy.It will be at least several decades before it is viable,they contend.Alaska has the energy resources we can use today,Governor Sarah Palin insists.Environmentalists are concerned that development in the area will harm wildlife such as polar bears.