President Obama has given Cramer plenty of reasons to throw up his hands in frustration, though maybe none more so than the cap-and-trade emissions plan. The White House wanted to aggressively cut the amount of carbon dioxide released into the atmosphere, given the threat of global warming. It’s a noble cause, for sure, but not one best implemented during a recession/near depression. And that is what had Cramer so upset.
See, the expenses incurred by companies such as, say, Consolidated Edison under the new requirements would be prohibitive. What’s worse, these firms most likely would pass along the costs to their customers, and that could effectively eliminate any middle-class tax cuts, Cramer said. So while combating climate change is something he endorses, now just isn’t the time.
Interestingly, though, Con Ed is already ahead of the pack on cap-and-trade. In fact, CEO Kevin Burke is in favor of it. The company has cut its greenhouse gas emissions by 29% over the past five years, and uses no coal at all.
Of course, there’s plenty of carbon released from the oil and gas that Con Ed uses instead, so Burke’s firm isn’t out of the clear yet. It, too, would have to pay enormous sums under the Obama plan in order to operate. If that were the case, then why would Burke be in favor of cap-and-trade? What makes Con Ed so different? Why is this company so confident when its peers seem so afraid?
That’s what Cramer wanted to know. So he invited CEO Burke on the show to find out. Watch the video for the full report.
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