I tend to trust the free market to sort it all out–if we give it time to work and keep the government away from mucking it up.
Peak oil? No problem. Oil prices will rise thus dampening demand and stimulating supply–of both oil and the alternatives.
Where we get into trouble is with an activist and meddling government. When they try to pick winners and losers they are far more inefficient (and political) than the marketplace. Look at what a disaster their ethanol program is.
Detroit is (belatedly) accepting high gasoline prices as a long-term fact of life, and changing its lineup accordingly. The free market has punished them for their foolishness–and rewarded the hybred car producers. It just took time.
