It's far past time to end the taxpayer subsidizing of the ethanol industry in America, as another big ethanol company is on the verge of declaring bankruptcy.
This time its VeraSun Energy Corp., based in Sioux Falls, South Dakota, which is close to declaring bankruptcy. The share price on Wednesday closed at a pathetic 49 cents a share, as they, along with many other ethanol companies, are quickly becoming insolvent.
As usual with government-sponsored companies, the management is horrible, and strategies employed with an eye toward being bailed out regardless of decisions or the marketplace.
When companies aren't allowed to fail, like in the current financial climate, all it does is regard terribly run companies with a safety mechanism that doesn't belong there.
In the past industries and companies were allowed to fail in order that the best-run companies emerge with the best products and services at the best price.
The foolishness of ethanol in America simply needs to be dropped and the market left to decide which way it wants to go. Most Americans want to drill for the proven reserves of billions of barrels of oil while we work on legitimate energy alternatives. Ethanol isn't one of them.
Update: VeraSun Files
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