Burlington Northern Santa Fe Corp. Rises 15%Berkshire Hathaway is a happy man these days.
Yesterday, Berkshire Hathaway reported that first quarter earnings had more than doubled, mostly due to fewer losses in their insurance holdings.
Yet one thing jumped out at me in the story, which was a significant rise in profit for their Burlington Northern Santa Fe railroad holdings of 15%.
Why is this significant? Because during the battles for approval of the Keystone XL pipeline, which the Obama Administration was opposing due to "environmental" reasons, and having only 60 days to review the proposal. This of course was a lie, as the State Department had already issued three separate environmental impact statements over three years, finding that there would be "no significant impact" on the environment from the pipeline.
What we did find out is that Warren Buffet would stand to profit handsomely from the President's blocking of the pipeline, as all oil from Canada would have to be transported by Burlington Northern Santa Fe rail. Political contributions, and shilling for the President on soaking the rich, will buy you that kind of favor, and even get you a piece of legislation named after you. Especially when you're dealing with a man like Barack Obama, who has made a political career out of Chicago-style scorched-earth politics.
Fast forward several months, and we find that (SHAZAM!) Berkshire Hathaway's BNSF holdings saw a 15% increase in profits. Coincidence? Only if you're gullible to the point of voting for someone like Barack Obama.
This is crony-capitalism at its most slimy.