You heard it here first, the Obama Administration will be investing heavily into the nation’s future by spending your (future) tax dollars on further developing renewable energy, retrofitting federal buildings to be energy efficient, and upgrading the nations’ energy and transportation infrastructure.

To quote President-elect Obama, “However we got here, the problems we face today are not Democratic problems or Republican problems. The dreams of putting a child through college, or staying in your home, or retiring with dignity and security know no boundaries of party or ideology.”

Friends, we must all participate in building up America, again, to be the leader that the world expects and demands.  We must lend our support (time, money, expertise and skills) to the endeavors that move the United States and world in the right direction.  Be sure to communicate with your representatives in Congress to tell them about the problems and your communities face.  Our government officials need our input as leaders can not lead without the feedback from their followers.

Also, be active in reviewing the legislation that eventually is proposed in Congress.  It may contain provisions that do not move America in the right direction.   Tell our government leaders your opinion.  This, my friends, is more valuable than voting and you have earned the right to voice your opinion.

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The Obama administration is not wasting any time is setting up the political structures needed to fight climate change.  One of his first actions will be to establish a federal cap and trade system to limit carbon emissions.

Two thumbs up to President-elect Obama’s actions to make good on his campaign promises.  Stay tuned for details on his energy policy as developed by his energy policy transition team.

In the wake of this week’s financial crisis, many investors have lots of questions about how the crisis affects them. So, in today’s post, I’ve interviewed several prominent Financial Advisors to answer some commonly asked questions about the recent events. The excerpts below offer sound advice from seasoned professionals and should help anyone make sense of the financial crisis and what to do. If you have any additional or more specific questions you’d like answered, please email financialadvisors [at] posipeople.com.

Question: With all the recent turmoil in the US financial markets – the sale of Bear Stearns, the government takeover of mortgage lenders Fannie Mae and Freddie Mac and now the collapse of Lehman Brothers – what does this mean for the economy as a whole?

Answer: The US economy has shown time and again that it is diverse, flexible and resilient. While I would hardly say that this latest calamity isn’t severe, it is not time to run for the hills. We have seen this kind of major disruption before – the dot com boom and bust of 1999-2000, the energy crisis of the 1970s, the Great Depression of the 1930s – and yet, the US economy continues to grow and evolve and is, today, the largest, most important economy in the world.

Question: So you don’t think Wall Street’s ills will affect Main Street?

Answer: Well, I would hardly say that. The economy is vulnerable for sure and is showing weakness is many areas but this is not the end of the world. We will emerge stronger than ever soon enough.

Question: Can you describe, in layman’s terms, what just happened to these financial institutions and what are the implications moving forward?

Answer: Basically, these firms were overinvested in what turned out to be bad ideas. Just like an individual should be wary of a portfolio that is heavily concentrated in a few rapidly appreciating assets, large institutions can fall victim to the same mentality. It is always tempting to stray from your core strategy when it seems like everyone else is getting a higher return than you are by chasing the latest fad or bubble.

Whether you are an individual or a large corporation, you want to make an investment because you believe in the inherent value of the underlying asset, not because you are speculating on its rise. This can be easier said than done, however, when your peers are posting eye-popping returns but, ultimately, being disciplined is the safest, if not most exciting, way to go.

Question: The Dow dropped over 500 points in one day in the aftermath of Lehman’s collapse, what does this all mean for the average investor?

Answer: If you have a well thought out, long-term plan in place, I would say that you should just stay the course. The market goes up, the market goes down. It’s the nature of the beast. If you believe equity investments are the best way to build long-term wealth, recent events shouldn’t change that thought process.

A well planned out, properly diversified portfolio will help to mitigate investment risks over time. Conversely, a poorly thought out plan, or, worse yet, no plan at all, can be problematic. A well conceived financial plan that is diligently followed and carefully monitored is essential, especially in times like these.

Question: What is a good financial plan? (Answer after the jump.)
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The good folks at “We Can Solve It” are putting their marketing might into changing consumer’s attitudes to demand clean energy within 10 years. The video above is their first video advertisement aimed at this goal. You might remember this goal from Al Gore’s Energy Challenge speech.

This video highlights an important truth that everyone in the world must acknowledge. (The quote below is from Cathy Zoi who is the CEO of We Can Solve It.)

“Switching now to clean energy sources will revitalize our economy — we can be global leaders in developing and manufacturing clean energy technologies. It will enhance our national security — reducing the pressure on our troops to protect oil supplies and avoiding the worst climate impacts in politically unstable regions of the world. It will make high gasoline prices less of a burden in our daily lives — enabling us to transition to clean plug-in hybrid electric cars. It will help solve the climate crisis — if we fail to act soon, the consequences for our children will be dire.”

Share this message and this video with your friends as it is important that all countries reduce their reliance on a single source of energy.

In Europe, a few organizations are starting to produce ethanol from waste. What doesn’t make sense to me is that we already burn waste to generate electricity. So, why would we take the extra step to refine waste to make ethanol? It seems that the best solution is to invest in better energy storage systems so that electric cars and other machinery can operate off the electrical grid. I do, however, applaud efforts to turn a waste stream into energy.

In addition, as the video states, there are a lot of detrimental byproducts from burning ethanol. Overall, I don’t think that ethanol is the solution for energy sustainability in the future. What are your thoughts?

I have to agree with Tom Friedman, author of “The World is Flat” that Endeavor’s model is “the best anti-poverty program of all”.

Endeavor’s goal in a nut shell is: to create as many good jobs in emerging markets as they possibly can. The model is simple: provide high-potential entrepreneurs in emerging countries with everything that Venture Capitalists provide the most innovative entrepreneurs in America - minus the capital.

Endeavor’s “mentor capitalist” model breaks down economic and cultural barriers through rigorous screening and strategic advising from a network of world-class business leaders. With their guidance, 266 Endeavor Entrepreneurs have created 79,000 jobs and generated $1.9 billion in revenues.

It’s ingenious and hands down the best bottom-up strategy that a non-profit can use to leverage free-market capitalism in emerging and developing countries. Endeavor’s model fully embraces the truth that the wealth of nations resides in our minds. The explosion in the world’s wealth is simply a product of man’s innovations - a product of his mind. With that said, capital is of course absolutely essential to scale a company quickly, but to think capital first is not the right paradigm. Capital will follow work ethic and innovative excellence.

As a side note Goldman Sachs just released a white paper on July 7, 2008 - “The Expanding Middle:
The Exploding World Middle Class and Falling Global Inequality” (FT commentary).

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