While Obama and his cronies may be ideologues with no common sense, the market (i.e. businesses and investors) is still quite astute.
Read this article. I’ll wait. Power Industry is Screwed, USA Today
Obama wants to price coal power plants out of existence. He talked about it throughout his campaign, conveniently calling it “cap and trade” rather than “first screw industry and as a result screw regular folks.” Cap and trade basically makes it so expensive to operate a coal power plant that businesses would be fools to actually build one.
If you’re an environmentalist nutjob, you’re probably cheering right now, except if you’re not a hypocritical environmentalist, you wouldn’t be using that evil box that runs on electricity, would you? So I assume that you either agree with me or you’re a hypocrite. Ahh, I love it when it’s so simple to lump people into categories.
Anyhow, the disturbing thing is that this has already played out on a smaller scale in California. California decided to regulate the bejeezus out of the power companies. They made it nearly impossible to get the necessary clearance to even BUILD a power plant, and then they implemented price controls. Geez. Who know THAT would be a bad idea?
To make a long story short, the power companies, being intelligent market-driven capitalists, went to other states and built plants there instead. They figured that maybe the best use of investor’s money would be to invest in projects that might actually break even or make a profit. Go figure.
And what happened in California? They are significantly short on power. They have rotating brownouts on a very regular basis, and it’s just become part of the expected way of life there.
Obama’s plan is to make the entire country into brownout central. We have all these projects now canceled, but demand expected to increase drastically.
I’m sure you’re thinking “Yeah Incredipete, but Obama’s going to put in green power and then this will be moot.” Ummm. Ok, I’ve written about that before, so you can go back and read. But basically it’s this: Environmentalists don’t want us to have nuclear, coal, hydro, or in some cases, even wind. All of those things are “bad for the environment.” That leaves solar. The only problem with solar is we don’t know how to harness enough power to come close to satisfying our current needs, and of course the fact that the sun doesn’t shine 24/7. Duh.
Batteries are also bad for the environment, so we can’t store the power. So basically, we’re screwed.
Thanks Obama, for tanking yet another industry that’s going to affect all of us. The savior comes through again.