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I’ve been on “Bloody Wednesday” watch for some time. The term is one I coined to describe the capital markets chaos we typically see when the Federal Reserve even so much as hints at an impending rate hike.
Now there’s this: Over the past week, multiple Fed heads have all but promised the first such tumultuous day is fast approaching.
Fact #1: Atlanta Fed President Dennis Lockhart told the Wall Street Journal late yesterday that “I think there is a high bar right now to not acting.” He cited “positive signals from the employment numbers” and the economic recovery that has followed a lackluster first quarter.
Fact #2: Lockhart’s comments came just a few days after St. Louis Fed President James Bullard strongly hinted at a hike in a previous interview with the Journal. He said “we are in good shape” for a hike at the Sept. 16-17 gathering (which unlike every single other meeting this year technically concludes on a Thursday, even though much of the discussion takes place on day one). The reason? “We had to get [the Q1 slowdown] behind us before we could get to the first rate rise. It is behind us and the outlook remains fairly good for the economy.”
Fact #3: The comments from relative centrists like Lockhart and Bullard dovetail with earlier hints from Chairman Janet Yellen that the days of 0% interest rates are coming to an end.
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| This week’s job numbers will be a crucial element when it comes to the Fed decision on interest rates. |
In other words, the battlefield has been extensively prepped for a hike. The only question is whether the employment and inflation data will permit a hike – which is why the information on jobs that we’re getting this week is so critical.
We learned this morning from the ADP Research Institute that the economy created 185,000 jobs in July. That missed the average forecast for 215,000, and June’s number was revised slightly lower.
But the two industries behind the weakness – energy and manufacturing – are no surprise. They’re victims of the stronger dollar and the oil price downturn, which the Fed will likely mitigate with “open mouth” operations aimed at talking the dollar down. Growth outside those sectors was fairly robust.
Construction added 15,000 jobs, for instance, while service providers boosted employment by 178,000. Job growth was dispersed broadly among small, medium and large businesses, too.
Bottom line: The ADP report likely wasn’t bad enough to derail the tightening push at the Fed. That’s true despite the fact we’ve seen other evidence of tepid GDP and wage growth recently. So be prepared for more market turmoil as Fed concerns grow, Larry Edelson’s cycles converge, and more key sectors and stocks roll over.
Now that you have my take, let me hear yours. Do these very recent Fed comments indicate that the first Fed hike in nine years is finally on the near-term horizon? Or do you think policymakers will kick the can down the road even longer? What impact will that have on bonds? Stocks? Other assets? Hit up the Money and Markets website and weigh in when you get a chance.
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In other news, the Apple (AAPL) share drop and President Obama’s climate change plot were the two big topics over at the website overnight.
Reader Mark said the Apple weakness is a sign of broader problems for the stock market. His view: “AAPL is just following the monthly sell signal in place on the broader indexes. Although the Nasdaq held up longer than the S&P 500, it’s now in sell mode, and AAPL will probably help lead it down.
“People may buy it at 15% or 20% down, thinking it’s cheap enough for a ‘correction.’ But odds are the monthly sell signal has shown the end of this bull market, and after a bounce, AAPL will drop through the 20% down level, and trigger lots of stops, which may start the real acceleration to the downside.”
Reader Myron R. added the following personal observation: “I have sold 1/3 of my Apple shares, but Apple still makes up 7% of my portfolio. I am underwater, but will keep holding the shares. Other than that, I am probably 88% cash.”
And another Reader Mark had this to share: “I made the mistake of buying in at $126 after the last little rally a couple of weeks ago. It immediately started to drop after I bought in, and I held my breath until this last session, where I set a stop loss at $115. It sold at $114.90. I’ll watch it and see what happens but with the China thing and all the spooky talk, I am too nervous to buy back in right now.”
A handful of readers took a bigger-picture view, though, with Reader Stuart A. lauding the Apple Watch and saying investors should stay focused on the longer-term outlook. His take:
“One of the problems with predictions and expectations is the super-short memories we have. When the first iPod or first iPhone hit the markets, no one was sure what they would ultimately turn into. Because they were so successful, the predictions were (I think) overly enthusiastic for now.
“By the time the new software update and version two of the watch comes out, I think people will know more, understand more of what it does and does not do, and how it can fit into your life if that is something you wanted in the first place.
| “The next several months of legal maneuvering will be so interesting to watch.” |
“I’m sure Apple will be fine, and more incremental advances will come along for the Watch and for the other products Apple makes as well. Considering that Apple was left for dead more than once in its history, they seem to have figured things out fairly well.”
Thanks for all the input. Personally, I get worried when more market “generals” start breaking down – especially when they are in formerly hot sectors like technology. It’s just another reason why I’m getting more cautious in my investing approach at this stage.
As for the latest regulations impacting the electric industry, Reader LKH said: “Obama’s climate plan did not go far enough because it still includes increasing drilling for oil and gas all over America’s land and water, in the face of the public health, environmental, and yes, economic devastation it brings.
“Also, there is the idea that somehow developing and using truly renewable energy is going to be expensive, that using renewables is expensive, and that it will ruin the job market. All of these are nonsense. Renewable energy is already more cost-effective in the long term for consumers, and as the scope grows, it will be so for major suppliers as well.
But Reader Jim countered that: “By every metric you use, renewable energy is an expensive, impractical joke. Pure pie in the sky. It would not survive for five minutes without wasting billions of taxpayer dollars on subsidies and tax credits. Some day in the Ray Bradbury future we may go solar, but that is several decades away. The world will rely on fossil fuels for at least the next fifty years.”
If you needed any more evidence how contentious this plan will be, these diametrically opposed comments provide it. That’s why the next several months of legal maneuvering will be so interesting to watch. Also, if you haven’t added your voice to the debate yet, here’s where you can do so.
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Walt Disney Co. (DIS) has been one of the most reliable performers in the market over the past several quarters. But it stumbled today in the wake of somewhat disappointing third-quarter earnings.
Net income jumped 11% to $2.48 billion, or $1.45 per share, in the quarter. But revenue trailed estimates at $13.1 billion. The entertainment and theme park giant also said that more “cord cutting” by consumers who can live without traditional cable TV service would hurt growth at its ESPN division.
The field is set for Thursday’s first Republican debate. Fox News restricted participation in the prime time debate to the top 10 candidates based on recent polling, which meant less-popular ones would have to settle for an earlier 5 p.m. forum. Everyone from Donald Trump to Gov. Chris Christie will now be on stage for the royal rumble.
Will China’s yuan join the small club of “reserve currencies,” at least in the eyes of the International Monetary Fund (IMF)? A decision is coming later this year, and it’s unclear which way the IMF will vote. The IMF has lingering concerns about China’s willingness to further open its stock and bond markets to international participation, and to accept full exchange rate flexibility, according to a recent staff report.
I don’t drive a Land Rover. But I’ve always thought the company’s Evoque SUV was pretty cool looking. Apparently, the Chinese agree. China’s Jiangling Motor is rolling out a new “Landwind” model this week. And in an amazing, complete “coincidence,” it looks the same and sounds the same as the real thing, even as it carries a price tag of only $21,700 – 66% less.
So what do you think of copycat Chinese products, or the country joining the exclusive club of nations with official reserve currencies? How about the Fed’s latest comments? Do they increase the chance of a September rate hike? Will you be watching the GOP debate? Let me know what you’re thinking about these or other stories at the website when you have a chance.
Until next time,
Mike Larson
Mike Larson graduated from Boston University with a B.S. degree in Journalism and a B.A. degree in English in 1998, and went to work for Bankrate.com. There, he learned the mortgage and interest rates markets inside and out. Mike then joined Weiss Research in 2001. He is the editor of Safe Money Report. He is often quoted by the Washington Post, Reuters, Dow Jones Newswires, Orlando Sentinel, Palm Beach Post and Sun-Sentinel, and he has appeared on CNN, Bloomberg Television and CNBC.
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Perhap’s the idea of hiking rates from the perspective of the general public and business feeling more positively motivated is the idea. After all we are an exceptionally emotionally motivated society.
For that matter when the fed (US) raises or lowers tates in may have a positive or negative impact depending how the greater part of the market takes it.
I take one example a small cap called Global Star (gsat.n) that is lingering at or just below $2. Now I have had a position and personally think the company has a great future, however the share price reflects a takeover artist a few months ago disparaging Global Star and saying it was worthless. In other words if one does there homework it can be seen that Global Star should increase in value over the next few years.
There are other corporations that are making money yet there shares are also well lower than they should rightly be, its all emotional… Just emotion..
So the fed raising rates my be very positive or taken in negative way, we shall see.
Didn’t I see somewhere today that the IMF has told China, “not this year”, but possibly next year, not making them wait until 2020, the usual 5 year interval? China hasn’t yet made the Yuan convertible, I believe, and that would seem to be a requirement for full membership.
They have to raise. If they were smart they would raise it twice this year 50 basis points each but that is pie in the sky with this bunch. If China and Europe keep slowing down the chance we will go close to or even enter a recession with 2 years is a real possibility. The Fed would then have no say in the outcome and no bullets left if they don’t raise. We need some inflation and the velocity of money coming into this country will be astronomical if they raise aggressively. Also, finally savers will benefit and those on fixed incomes will have more to spend and the banks can go back to their core business instead of more and more risk.
Just one year ago…
MONEY AND MARKETS: INVESTING INSIGHTS
The BIGGEST Reason I Love Select Energy Stocks These Days!
Mike Larson | Friday, August 1, 2014 at 7:30 am
“…It’s because we’re in the midst of a massive, domestic, energy renaissance — a veritable bonanza that doesn’t need exploding prices to line your pockets with dough! Instead, it’s based on an explosion in domestic production, drilling, transportation, storage, and refining that this country hasn’t seen in decades. That makes this boom both more durable, and more rewarding, than any I’ve seen in my career!…
“Bottom line: You can buy the big, household name energy stocks and make money when oil and gas prices surge. There’s nothing wrong with that.
“But this is an entirely different kind of energy bull market — one being driven by a massive, domestic renaissance. I’m confident it can continue for years, and hand investors massive amounts of wealth — regardless of whether crude goes for $100, $150, or $200 a barrel!”
Thanks for the reminder…
As of today I am adopting a new ironclad policy. I will NEVER-EVER read another “urgent video message” as long as I live. Jim
Amen. Who needs vidio hype. If it isn’t printed I can’t read it so it must not be that important.
It’s hard to believe the Fed will raise rates this year. That would key all debt to become more expensive, and since our economy is now built on debt, that would be very deflationary and kill any recovery for at least some time. People seem to have recently been saving a bit more, since inflation has been low, making saving a bit more practical, at least in the short run.The Fed doesn’t want that, though. It wants people to copy the politicians in government, and spend and borrow more, so it may just raise rates after all.
They will do what they have done for a long time.don’t have guts to make a decision so just keep kicking the c a n down the road so another generation of even poorer working people will have to pay the intitlement peoples bills and i don’t mean social securety and medi medicare
They will do what they have done for a long time.don’t have guts to make a decision so just keep kicking the c a n down the road so another generation of even poorer working people will have to pay the intitlement peoples bills and i don’t mean social securety and medicare.
entitlements—proper grammar,—-please. what do you mean?
Hey mike it’s all lip service theyes going too sit on 0 interest rates. For this year. All that r is talk.
MONEY AND MARKETS: INVESTING INSIGHTS
Transcript: Greatest Energy Opportunity in 3 Decades
Martin D. Weiss, Ph.D. | Monday, May 18, 2015 at 7:30 am
Mike Larson: It’s very simple. The last time we saw an opportunity as promising as this one was in 1986 — almost 30 years ago.
That’s when the price of crude oil collapsed, just like it did last year. That’s when major energy stocks fell at huge double-digit rates, just like they did last year. And that’s when most experts said it would take years — even decades — to recover, just like they’ve been saying this year.
Martin: To my knowledge, Mike, you’re the only analyst who pinpointed the exact bottom.
(I.e., 72.86 on 1/15/15)
Martin: Good. I know you’re going to give us two ways to invest in the energy markets and name names our readers can buy today. But first, some skeptics might ask you this: “What makes you think this is going to last?â€
Mike: Because the forces driving this surge are not just technical lines on a chart. They are long-lasting, unstoppable fundamental forces that will continue to drive prices higher for years to come!…
Martin: Name a couple.
Mike: The Energy Select Sector SPDR Fund is the granddaddy of them all, with $15 billion in assets. It holds 43 well-known stocks like Exxon Mobil and Chevron…
Mike
“…The main point I wanted to make today is that this is a huge opportunity…”
Fact: Energy Select Sector SPDR Fund (XLE) August 5, 2015 close: 67+, down 5+ points from Mr. Larson’s brilliantly called low…….whoops.
Comment: Whether energy prices are high or low, whether energy stocks are high or low, it’s time to buy energy.
thank you very much, Neal. good lord–i caught the rally in energy shares back in february, 2015 and was out in 6 weeks. how does this guy get away with this nonsense? suddenly was an energy guru seeing great opportunity. oil sub 30. not? check archives– i think 2011. his heroic call to get out of all stocks. Dow going back to 7000! i had always remembered it . checked out but forgot to bookmark.. again, thanks Neal. so few say anything.
MONEY AND MARKETS: INVESTING INSIGHTS
The Shocking Case for Dow 7,000!
Mike Larson | Friday, September 9, 2011 at 7:30 am
How far can we fall?
How ugly are things going to get?
How likely is a 2008-style meltdown?
I have a two-word answer for you:
Dow 7,000!
That’s an incredibly likely downside target. So today, I’m going to lay out my shocking case for a 4,000-point drop — and tell you what you need to do right away to protect yourself from it!
Neal,
While we are at it, this website didn’t say a thing about the impending Stock Market Crash of November 2007-March 2009 under Cheney/bush and the GOP Majority…..
Then since Obama and a Democratic Majority was elected they have been calling for an even bigger Crash because oftheir policies, when exactly the opposite has happened….
Currently, I have also noted that the Markets have basically gone NOWHERE since January 2015… I believe that is when the GOP became a majority on BOTH Houses…. But, that is probably only a coincidence, right?
It is beyond argument this is the worst “recovery” we have ever had. They pumped up the stock market with trillions of QE money which helped no one but Obama’s wealthy supporters on Wall Street. Good God man, there are 92 million Americans sitting on their butts doing nothing but watching reality shows and eating frozen pizza bought with food stamps and unemployment benefits. The Stock Market is another Fed created bubble waiting to pop. Our Economy sucks and it’s all Obama’s fault. The Republicans are to blame because they go along with this charade. Oh, by the way, I’m in the market for some leftover fetus organs if you Dems have any left. Or maybe we can send a seven times convicted illegal alien felon to your house too. Jim
It sounds like they’re planning to tighten just like they did back in the 1930s. Which is amazing since today’s “they” fault yesterday’s “they” for tightening … which today’s they say caused the problems back then. Go figure. I guess there really is actually nothing new under the sun … its just new for all us novices … just like it was new for all those yesterday novices back then. The more things change the more they remain the same.
I think the Fed will now hike in September or October. They have prepared the markets with repeated opinions by Fed a Governors and Chairman Yellen. They know the rates have to rise and with unemployment rate continuing to fall it is time to move do they can get a few hikes in place before we get into Presudential election cycle. Their main concern is to avoid market meltdown so by gradually changing the nuance and individual Governors expressing their preference for hike they have kind of got the market to come to terms with fair a’compli? I think they should do one half per cent hike and announce a halt till further economic indicators compel more hike. A quarter point hike will lead to markets discounting further similar hikes each FOMC meeting!
FED will kick the can as long as they have legs.
Rick, this is not for you personally, but if I hear the phrase ” kick the can down the road” one more time I’m going to go postal. Speaking of Postal has anyone seen where the Post Office intends to sell 56 of its properties? The exclusive contract for selling these properties was given to Michael Blum’s company. He just happens to be Sen. Diane Feinstein’s husband. It was awarded without bids for 19 billion dollars worth of property. He stands to mark 6 per cent on the deal. Do the math! This is taxpayer purchased property but the funds will be given directly to the ever efficient Postal Service. I’m sure they will spend the money as wisely as the other billions they have pissed away. The political class now takes us all for complete idiots. Thank you. Jim
Kick the can,Awesome those 2 sayings really get up my nose,you hear idiots saying awesome even eating a meal.Another one,( Have nice day),I feel like killing someone,maybe one day ,not today,so relax
Raising interest might be easier said than done. The Fed Fund Rate, FFR, is the rate that banks lend to other banks overnight. The Fed could vote to raise this rate but banks have 2.7 billion in excess of reserves (which they earn interest on) and no longer need to lend money to other banks.
Henry Arnold
Exactly, glad you wrote this so I don’t need to; however, it remains to be seen how higher FFR rates will actually be applied to lending. Especially should the need to borrow dry up; and how will this affect stock buy backs.
The reason they need to hike rates is so they will be able to lower them in the near future.
Well another perspective might be that they want to raise rates because long term “price level” and “interest rates” move in the same direction (this is known as “Jackson’s linkage” … see Antal Fekete’s missive … http://www.financialsensearchive.com/editorials/fekete/2005/0124.html ).
Because what they really want (and have to have) is inflation. That’s what anybody who’s head over heels in debt craves.
In addition … the primary benefit of having the world’s reserve currency is if you can use it to tax the rest od the world. And without inflation this isn’t possible. See Krassimir Petrov’s really interesting article here …
http://www.resilience.org/stories/2006-01-17/proposed-iranian-oil-bourse
So they want to be able to raise rates so they can create the inflation necessary to:
1. Tax the rest of the world per Krassimir Petrov’s explanation … and
2. So they can cause the country’s enormous debt to shrink and vanish away by monetary inflation.
They are desperately trying to create $ inflation. And until they do you can depend on them shoving negative interest rates down our throats until they have completely emptied everyone’s savings (for those who have savings).
One additional thought along these lines … which also fits in with Larry Edelson’s recent missive “Cash will be abolished. Here’s why …”. One of the reasons why they want to abolish cash is so people can’t hoard money outside “the system”. After all … how can they apply a negative interest rate on cash that is horded under one’s pillow during a deflationary part of the long term business cycle? They can’t. So they’re going to do away with FRNs (cash). That way they can keep robbing our savings because one’s money has to be held in a financial institution (not under one’s pillow). They are trying to do away with hording (because its hoarding that gives rise to deflation which is the only thing the little guy can do to protect himself from a predatory government) … which will in turn just force the little guy to go to gold, silver, and other tangibles even more. So I suspect they will be outlawing these too down the road for that reason. Its all about the power elite controlling “we the people” and making sure that if there’s a price to be paid then it will be paid by us … not by them. I think its really that simple.
Raise rates? It is about time. The market has been stumbling for months and growth is negligible. The Fed will probably raise rates just before the big implosion starts. Maybe you can sense my cynical attitude toward the Federal Reserve and their control of our economy.
The Feds may hike interest rates a token .125 percent.
This would result in a mild ‘ripple’ effect in the financial markets.
So much talk o a September rise has been voiced that it probably will occur.
They’ve been dangling the carrot of rising rates for years and it NEVER happens! It’s a way to punish those who save, and the banks can still make money with 0% interest rates. We are in fact, loaning our cash to the banks for 0% and get little or nothing in return. I’ll believe it when I see it! ;)
One thing you can just about bet your money on: if the Fed raises rates, they will do so at the wrong time, and cause other problems. The Fed people, after all ,are prognosticators, just like Martin, Mike and Larry (and you and me), and though they may have reasons for their guesses, they may not see other reasons why things could go an entirely different route. Make your guesses and place your bets, and pray.. “The moving finger writes, and having writ, moves on…”
Do we want a “Zombie Economy” in perpetuity? Get those dam interest rates moving UP so people have an incentive to save, government leaders have an incentive to say “NO” to more spending, whether on defense, surveillance, healthcare, or social programs. We still spend WAY more than we TAX (income). (Do we even think about this stuff anymore?) I would love to see a balanced budget before I croak off -please?
Not knowing your age Frogbottom, I bet you dollars to donuts the U.S. economy croaks before you do even if you are 105…!
Why is everyone so fixated on the first Fed rate hike ? According to Larry Edelson the Dow will be at 30,000 in two years so sit back and enjoy the ride or aren’t you a believer Mike ?
Mike: the Chinese want to be part of the exclusive club that backs the IMF currency, Special drawing rights. They are currently buying gold at record numbers, both overtly and covertly. Their ultimate goal is to replace the dollar as the world’s reserve currency, Based on what I have learned to date they are many years away from this. The Chinese have no viable bond market. People want a place to invest any Yuan that they may purchase. A viable bond market would achieve this goal. They also would need dealers to buy and sell bonds as well as derivatives, hopefully aggressively regulated. The special drawing rights currency was used for international transactions in 1969. It is is currently backed by the US dollar, British pound, Euro and Yen. Regards, Robert Calabro.
And what about the potential currency change in October?
Laughing at all of you who notice “the sky is falling” Chicken Little business from the near past. Martin Weiss, when the Dow was 3200 predicted it would fall back to less than 1000 or something like that when I first got started in the market. When I asked him after the Dow was well over 9000 what he thought of his prediction, he said, “I was wrong.” BUT, remember folks that asset preservation is what he and Mike are all about. Not losing it. That’s really important to remember.
On the notion of inflation setting in, it’s not going to be energy this time that kicks it up in the near future, nor the interest rates. Not this time. It’s going to be wages going up. Everyone is getting very competitive with what they will pay (even without a required minimum wage law, thank you) and it’s because jobs are EVERYWHERE! Good jobs, too. Our newly graduated high school son is foregoing school and heading off for an apprenticeship. He had several offered. This from my theater kid! He can always retrain for something down the road if he needs to. And his wages? Double the hamburger flipping jobs. In one convenience store today, an large pregnant girl told a friend that she had been called in to work because they just can’t hire enough help. Young people leave for better jobs the minute they can.THAT is what will drive up inflation soon, mark my words.
You are most likely correct, Beth. It stands to reason, if employers are spending more on wages, they will need to raise prices to pay for it. And if people earn more money, they will be willing to spend more (and can qualify to borrow more, which is the real basis for our economy). That is also the basis for increased inflation. Retired people though, like myself and others who don’t get the raises, will be hurting.
Your son may be wise, by the way. College graduates are a dime a dozen these days. People who have worked and gained skill and knowledge are increasingly rare, however. If he works at it, he may get a leg up over those who know little of how the real world operates.
Oh, and Mike, I noticed an error in my post. Sorry. Any way we can get an edit tool on this like they have on FB? Thanks!
Dennis Miller was unusually prescient tonight. When asked which Republican candidate he preferred ” none of them, they’re all creeps”. He said when you consider the current direction and mood of the country there is only person it truly deserves to have as its President. HILLARY CLINTON! The more I think about it, the more I think he is right. If we are going to go down the crapper lets get it over with. Jim
Hillary would certainly put us down the crapper, Jim, even quicker than the Republican hacks.
Unless we keep all nuclear plants still operating on line, we have no chance of reaching the CO-2 reduction goals announced this week. Public acceptance would increase if the NRC completed the safety review of the Yucca Mountain waste disposal site. Harry Reid should not count anymore.
During deflationary times, cash is king, and politicians don’t want ANYONE other than themselves to have any power to control their own lives, so you are probably right, tradewinds. the politicians will try to abolish cash. Alternative; they can inflate it into meaninglessness, as in 1920s Germany. Revolution, anyone?
As for the Federal Reserve and it’s rattling the cage with it’s rate hike tremors. The game that’s being played with interest rates has been just as much about hiding the higher price the United States pays for the interest on the national debt as it is in the supposed panic a rate increase will create. Obama certainly isn’t concerned about what his wars on earnings and energy will cause in lost jobs and continued shuttering of companies who’ve supplied coal for decades in America. Why would he or the government as a whole have any reservations about an interest rate hike by the Fed. If there is no other logic decipherable from every penned or passed legislation that’s come out of this administration it’s that the government no longer serves the American people. It would seem to me that we no longer have a republican form of democracy but an oligarchical state ran by one guy who considers himself the only highest authority. We haven’t begun to see the last atrocity of lawlessness out of this guy.
I have been reading books about the first twenty years of our great Republic. The courageous people who founded and built our country would not stand for what’s going here now for five minutes. They would have grabbed their muskets and headed to the nearest tavern for a pint of courage. Traitors, revolutionaries, troublemakers, brawlers, malcontents, whiskey drinkers all, whose motto was “don’t tread on me”. Praise The Lord and pass the ammunition! Jim
I’m a retired electrical engineer, who just finished building our retirement home. I looked at solar photovoltaic, solar hot water, wind, and a super insulated home. The winner was… SUPER INSULATED HOME. Solar PV, even with 30% federal tax credit and a state credit, would have taken 14+ years to break even! Solar hot water even longer. Wind was a non-starter — not enough wind at my location. So I went with super insulation, and it will pay for itself in 3.5-4 years. I am heating my 4000+ sq ft home here in the Colorado Rockies with a medium sized wood burning stove. I have a backup boiler for hydronic heat when I no longer will be able to cut and split my wood, or when we go on vacation. We need to stop pandering to the “pseudo-green” movement and go real green — better insulated homes