A Green Bubble???

It's not a great environment for green investing...no pun intended...

First there was the dotcom bust of the late 1990s, then came the real-estate bubble that's deflating before our eyes. Next up: the green bubble. Alternative energy ventures have received a lot of great press, heavy investment and lip service from politicians in the last couple of years, but many of the nascent green industry's balance sheets are beginning to bleed red.

Among the hardest hit is T. Boone Pickens and his alternative energy hedge fund BP Capital, which has reportedly lost some $2 billion. The Oklahoma oil tycoon who leased hundreds of thousands of acres in West Texas for a giant wind farm, has put that project on hold, saying he'll have to wait for fossil-fuel prices to rise again in order to make the project economically viable. Oil was at $48 a barrel this week, down from a peak of $147 in July. Another canary in the coal mine: the once soaring market for carbon credits in Europe has tanked, as manufacturing firms worldwide slow production. Even the once promising sector of corn ethanol has gone bust, with the American company VeraSun declaring bankruptcy in October and other publicly held ethanol companies reduced to penny stocks.