All the talk about ethanol being our savior from higher energy prices down the road is a little misleading. As the U.S. tries to become more energy independent with alternatives like turning corn into ethanol, they are missing a very important result of that process.

While ethanol can be used as a gasoline additive (10%), using ethanol in any greater capacity can create a snowball effect on the prices of the other products made from corn.

Obviously, as the demand for corn rises, so will the price for corn. Ethanol is nothing new, in fact it has been made from grain for thousands of years. Only in the last 20 years or so has Ethanol achieved popularity as an alternative for fuel.

So, if ethanol demand increases, and corn prices rise, it is natural to assume that the other derivatives from corn will do the same. So, what are the other products derived from corn?

As I mentioned on June 15th (see "Slowing Down as we Approach Dow 11,000"), and reiterated on June 16th (Dow 11,000: Welcome to "No Man's Land") the Dow is staying around the 11,000 mark until it gets further information on the Feds next move.

In recent days there has been speculation that the Fed will raise its key lending rate 50 basis points, and then call it quits (for now anyway). Whether that happens or not remains to be seen.

A fed funds rate of 5.75% would push the key lending rate in the "restrictive" territory for the first time since the 2000-2001 time frame, cash strapped consumers will be paying more for credit lines and adjustable rate mortgages. Currently banks are charging 7.75%-8.00% on prime, and another .25 or.50% would ratchet up the prime rate acco

Well, this is the week that many investors have been waiting for. The Federal Reserve will meet this week, and raising short-term rates to 5.25% is a given. The wildcard out there is will the Fed pause after a .25bps move, wait until August to pause after raising rates another .25bps, or have the guts (or stupidity) to raise rates .50bps and stop.

The first scenario is a lock because market rates have already risen, and the Fed never fights market rates.

The economic numbers are mixed. Durable orders fell, but when you remove the volatile transportation component, there was still a healthy gain of .7%. Transportation accounted for the biggest decline in orders falling 18%.

The Leading Economic Indicator fell 0.6%, but housing starts rebounded for the first time this year.

The Economic Cycle Research Institute (ECRI), which designs indexes that help predict inflationary pressures in the economy, said that the future inflation gauge (FIG) for the U.S.

As many of us battle over who we ultimately choose to be the successor trustees of our estate, you need to keep in mind how many bank trust departments operate.

Through the years, I have told clients that banks have their own agenda's when it comes to your assets. This article on Wachovia is an example of what I am talking about.

Please Read This

Once again, the Dow continues to battle with the 11,000 mark. I have not been posting multiple journal posts for a few simple reasons;

1) If you have been keeping up with my journal, you know what I think, and you know where I stand.
2) I only post my journal when I have something to say. In the blogging world, I am told that the more times you write you post blog entry, the more people you attract. Since my goal is to provide the best information possible, I am not going to post a journal entry just to attract eyeballs.
3) And finally, why should I comment on the obvious. Anyone who watches the financial channels, or reads financial commentary from Yahoo Finance knows what the obvious is. I like to bring you some thoughts that are not so obvious.

A good example is the wave of merger activity in the oil sector. This is obviously an example of something that is obvious. Everyone is reporting these mergers as companies scramble to secure assets. The obviou