Buffett's bet on the US economy?

[TastesLikeChicken]

He's betting on oil going to $300 and Diesel well over $10 a gallon killing the Trucking Industry permanently.

Same for the Auto Industry. A lot of people will be abandoning cars.

The vast majority of trains run diesel/electric systems and use quite a bit of oil derivatives as well for operations. So how would a drastic rise in oil/diesel prices not affect the railroad industry as well?

 

[Ozoned]

I guess he is betting Cap & Tax isn't going to pass.
After all, Obama did say that he would "bankrupt" anyone who wanted to build a coal power plant and also cause power prices to "necessarily skyrocket".

I am starting to rethink this a little bit.



Under Cap and Trade, the carbon allotments to BNSF (Worlds 3rd largest consumer of diesel fuel) will be worth several billion dollars. If BNSF converts their locomotive fleet to the new energy efficient generation locomotives (built by none other than Buffets G.E.), they will have excess credits to sell.

Buffet is betting on cap and trade is going to pass.

The moment cap and trade passes, any industry that has a large carbon footprint is going to have a huge increase in their value.


Carbon trading will be speculative. This is the next bubble designed to fuel the global economy.

 

[StageLeft]

This is pretty much what you sound like...
http://www.youtube.com/watch?v=UjbPZAMked0

That was brutal for a congressman to act like that, completely ridiculous.