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I'm sure you could manage to measure the amount of energy wasted by your condenser fan, but I promise you it's statistically insignificant. If you're trying to save an amp or two or power, it would make more sense to make sure you don't have any lights on or that you're not carrying any heavy objects you don't need in your trunk. That said, the most ...

You have partially answered this yourself- you are seeing smoke, which implies the bearings are getting hot. So they could start a fire. Or in seizing up the fan could cause your wiring to catch fire. Or you could end up with a cabin full of dangerous fumes... etc You could do permanent damage, yes. Pay close attention and you might be okay. Personally, ...

If the fan is installed Check if it has any play by placing one of the blades at about 12-o'clock and applying light pressure in and out. (top goes toward firewall and the blade at roughly 6pm would push outward.) You should have very little play here. If the fan isn't installed then you can just grab the water-pump shaft _(where the pulley should be ...