In theory, "cap and trade" is horrible for the coal stocks. However, did you notice the flap about Obama's comments about putting coal fired plants into bankruptcy?
This supports my environmental correctness theory. Every one is for a clean environment. It is sort of like mom and apple pie. So, it is easy for a Joe Biden to say "no more coal." Obama is a bit smarter (like +50 IQ over Biden). I think what really happens is this: everybody is for a clean environment until the fully realize the consequences. "Cap and trade" will double electric rates, it will throw thousands out of work, and it will exacerbate our trade deficit. When all of this becomes apparent (i.e. the unwashed figure it out), I wonder if the left can really push it?
So, I like coal because the economics are so favorable, but I don't like the politics. But, are the politics really going to happen? Is this just a promise a politician makes but when his advisors point out the consequences, he just quietly shelves the idea as a low priority issue. So low priority it really never happens?
If Obama does carry through with this nonsence you will see a Republican re-elected to the White House, in 2012, the same way Carter was thrown out. I remember inflation under his stewardship was near 20%. I was getting 15% on my IRA at the local bank and a guy from work bought a house with a 19% mortgage.I told him he was crazy.
This is exactly what I was thinking but I call it "Wal-marting" (people using the cheapest solution possible). So-called Green solutions always have the extra layer or two of processing or installation factored into the price which makes it more expensive. Oil and coal will always be able to beat that price. Oil sands? Forget it. You don't even hear much about ethanol anymore.
We are not in or heading into an economic climate where people are looking to spend more just so they can sport a "Green" ribbon. Can't afford to.
Tough day though. Geez I took a beating. Almost getting used to it.