ACEMAN

Buffett's Burlington Buy Is Really a Bet on China

Y'all got to understand that it makes no sense to go buy yourself a national railroad with aging rails and expensive to run railroad cars to deliver various types of coal be it thermal or slurry, hard or soft, utilities or steelmakers. where is the advantage to that theory, unless he intends to write down the whole shebang for one major balance sheet correction. No one in their right mind would do that, even if y'all wanted to save America by building confidence in an aging and aged infrastructure, it makes no sense. Until the Secy of the Interior gets religion on coal and oil shale, this admin is in cohoots with the environuts who wish to stifle any additional commercial mining, drilling where there is loads of coal, oil and precious metals.Go read the latest roadblocks induced by the paranoid and crazy new EIR's promulgated by Secy Salazar. Y'all don't know a thing about hard commodities if you think Robber Baron Buffett's deal is about coal. Coal has a purpose in its comercial use and that it lights up your homes as electricity. Buffett could have bought all the major producers in the US for the money he paid for BNI. The deal could be some sort of derivative play on the value of the land and the right of way of the rails and this can easily be leveraged, sliced and diced, and sold to Wall Street and then bankable as a credit pool and sold for its righjts as a long term bond. all sounds familiar, don't it? Now, I really need my beignet and coffee at the Cafe du Monde, NOLA.

Riding the Rails: Why BNI Was Berkshire's Best Bet - And Vintage Buffett

Y'alls are missing the real picture perfectly painted by brother Mark Anthony; Buffett is no superman coming to the rescue, he's missed the mark on his valuation and y'all are going to pay for it too! Railroad over capacity, absolutely, righteously correct. It's the coal pipelines that will feed Mid American deals, but at this price it is all wrong. Who benefits here? Massey, Arch, Peabody and utilities generating electricity from good ol' coal? If that is the deal, then he has lost his valuation mind, 'cause if he really wants to make money for his investors he should be invested in Chinese railroads that are bursting at the seems and will now be the beneficiaries of the New Chinese stimulus to increase domestic rails to meet the ever increasing demands for rails to the 400 million folks in China who are about to create 20 new cities. And what do these folks need? They need electricity supplied by coal. And yet China does not have the coal capacity and thus is buying up coal inventory in Australia, Canada, Brazil, South Africa, Chile and Peru: coal and railroads go together like good beignets and hot coffee in
the Café du Monde