To be profitable, the RR needs goods to ship, fuel to be reasonable priced and labor to be reasonably negotiated.
One of the main materials shipped by rail is coal; is he thinking Barama is going to lose on bankrupting coal power plants? The fuel for locomotives would also remain reasonable if Cap and Trade is defeated, and domestic oil production increases. And labor, despite what the UAW is doing to Ford, is not going to be especially bold while the recovery remains slow.
Calling a bottom?
The bottom was at about Dow 6600.
We’ve since touched 10,000 and now are at about 9700.
Hardly a bottom call.