Buffett

Billionaire Warren Buffett said Saturday that the U.S. government is taking the correct actions to help the economy recover. Buffett spoke briefly before the opening of the annual meeting for his Berkshire Hathaway Inc., expected to draw an audience of roughly 35,000 people.
“The government is doing the right things,” Buffett said. “They’re acting in a countercyclical manner.”

One of the richest men in the world. A pure capitalist. A brilliant businessman and investor. Respected by both sides. But yeah…he is obviously clueless in this situation according to you.

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2 Responses to “Buffett”

  1. urstupidnourstupid Says:

    Obviously I don’t think he is clueless. I think there are thoughtful and intelligent people on both sides of the issue. We are dealing with staggaring #s and unprecedented actions that our government has taken. There will never be a consensus on the actions we have taken during this period of time. It will be studied and analyzed for generations.

    I would be careful where you hang your hat. A short term rise in the stock market doesn’t mean we have recovered. We also continued to lose more jobs and had a 6% + drop in annualized GDP. We have a federal reserve that is buying debt by the trillions which is masking some of the fractures in our credit markets. The government is issuing debt instruments (bonds) and buying them back with printed money to feed the system. It is estimated that if Obama stays on his projected path, we will be paying 1 trillion dollars a year just in interest. This country has gone on an unprecedented spending spree in the last 30 years. We have racked up debt at record levels in households, corporations and our government. We also have massive IOU’s that will continue to rise as baby boomers retire.

    There are several nations around the world that are suffering far worse than us. They don’t have the capital or brand that the U.S. has to increase their liquidity. It’s not out of the realm of possibilities that there will be more Iceland like collapses which will put a further strain on the economies of the world.

    I don’t believe that the government should be taking large shares of major industries. And I don’t think we should continue to prop up institutions that have failed. I think that even if we had more short term pain, that the market would swoop in and mop up the failed institutions and they would emerge leaner, meaner and stronger.

    I think that if we take our medicine and let asset prices fall to their equilibrium (housing for example), spend less, save more; then we will emerge out of this mess faster. It would require more short term pain (unemployment and less growth) but would allow us to have a healthier economy with sustainable spending and savings that would boost production in the long term.

    This doesn’t mean we can’t recover, it just means that the recovery will be dragged down by debt servicing, less efficient markets and less world trade.

  2. urstupidnourstupid Says:

    I completely agree with spending less–as a country and individually–(after we put this fire out) but it’s hard when consumer spending keeps the economy afloat (it’s a huge part of the pie) and advertisers and marketers and low interest rates and new gadgets and ego and status symbols are all out there working against that. It’s a paradox. Literally, when the American Dream is owning your own home, who wants to be denied that? I believe its a cultural thing. Our grandparents worked their asses off and came from nothing so that their kids wouldn’t have to. Home ownership, college education, upward mobility, autonomy–it’s within nearly everybody’s reach and so therefore has become undervalued. So we get those things and all that’s left to do with our free time and money is be irresponsible and spend money. And the government spending–defense, prescription drugs, drug wars, …I say push back SS benefits to age 68, cut defense by 20%, end the stupid drug war and tax marijuana,…and put ME in charge for 1 year!

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