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BNSF boss says transport system nearing crisis

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I can predict the S&P 500 will be a lot higher 20 years from now, but that doesn't tell me what stocks to buy, when the big drops will occur, or who the next Google is. A company that keeps a large number of under-performing assets on the books that have high fixed costs, will find it very difficult to weather recessions and economic downturns. The result will be a lot of deferred maintainence and unhappy investors. By the time a use for that asset occurs, it may be completely unsuitable and the weakened condition of the company will make it impossible to raise the capital needed. The Northwestern couldn't use the Cowboy line to tap the PRB because the line was in bad shape and the company wasn't financialy strong enough to raise the necessary capital. Wasn't the PCE largely a victum of deferred maintainence? Capacity is also a function of speed restrictions, derailments, etc. An investor can't buy stock in the locomotive division of GE without also getting NBC, jet engines, etc. So is 'Wall Street' to blame? The majority of shares of most corporations today are owned by retirement plans, 401Ks, IRAs, mutual funds, etc., so take a good look at your financial statements the next time the market drops, then look in the mirror. FM, You've missed my point entirely. Barring a Katrina-size meltdown of the rail industry, the political and economic reality of today means there's no appetite at the Federal level for AT&T style breakups or re-regulation. Things do run in cycles and that time may come, but it's not now. Regarding Enron, California's law probably would have been sufficient had Enron been trading under the same rules that govern the actual commodity markets. Instead Enron ran the trading operation, made and enforced the rules, and manipulated the market by being both a buyer and seller. Not too different from the Hunt brothers attempts to corner the Silver market some years back.
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