I know what you are thinking:yet another post about Bear Sterns. Well, yes. I was disheartened by the news that the CEO of that firm decided that as the company was falling and its investors loosing billions of dollars, he would play bridge. I am sure that he has no worries; there has to be a golden parachute for him. Although where that money will come from is anybody's guess. Now as investors are quickly pulling their funds out of financial institutions, I wonder how other CEOs are handling this renewed crisis. Maybe a good game of golf? I am a bit stupid: I have not sold off my financial stocks; I am only not buying new ones. It is upsetting that no leader of a major financial firm has become a leader. I have not seen any press releases reassuring investors, or dramatic actions to reassure the public about their business. I think that they may be out of touch.
I go to buy some groceries to find that prices have risen noticeably in one month. According to a report, eggs have risen over 33%. Of course that was the most surprising price, but most items rose close to 2% over the past month. I think that we in the real estate industry really have noticed the cost of fuel. One client this past week suggested that I should have a separate mileage charge to cover that cost. I think that could almost be the amount that I charge for an inspection (alright, I am having fun exaggerating a bit, but fuel prices in Hawaii are moving towards $4 per gallon, and many areas are not far behind). In the past two weeks, many potential clients are asking for partial inspections or asking for ways to bring the price down, and there are times that I want to remind them, that I am being effected by rising costs too. Considering that I average around seven work hours for each inspection, I hope that they feel like I have given them their money's worth. However, being blatant about our financial woes will not be appropriate with our clients.
The real shame to me about this situation is that investment money for alternative fuels has not been forthcoming. Currently, only two car manufacturers make diesel engines that can use biofuel on a normal basis: Volkswagen and Mercedes. (It is interesting to note that Rudolf Diesel meant for his motor to run on peanut oil). To convert an engine to flex fuel in a factory when a car is being built would cost $100 per unit. Yet we still do not require this measure for our automobiles. We would rather stay hostage to $100 per barrel oil. (Which, mind you, I cannot fully complain about, since Houston's economy has benefited from this development, so continue to rattle your saber Mr. Chavez). Personally, though, I want to see us move towards more energy efficient life that is not reliant on a certain set of fuels.
I guess in the end, we need to find ways to run our own businesses in a cost effective way, so we can pass those savings along to our clients, but we also should pay attention to what we can do to improve the mess that we are in.
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