Warren Buffet on Charlie Rose
Here is last night's Charlie Rose Show, with WB speaking for an hour.
Thursday, October 02, 2008 | 12:31 PM | Permalink
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wb in one word: disingenuous
Posted by: karen | Oct 2, 2008 12:41:35 PM
Buffet's being quoted at cnn/fn right now:
"Warren Buffett said Thursday that it is crucial to the global economy that the controversial $700 billion Wall Street bailout passes and that the pricetag may have to rise to do the job right."
Is this a de facto acknowledgment that the giveaway (I mean bailout) won't work? Why shouldn't we just f'in give EVERYTHING to the ultra-wealthy in the name of protecting the little guy? This is a nightmare.
Meanwhile, we have the creator of the nightmare, Greenspan, saying on Bloomberg that this will be over "sooner rather than later." I cannot believe anybody would give his opinion any credit at this point.
Posted by: Dan | Oct 2, 2008 12:45:11 PM
THANK YOU Barry. GREATEST Post this year.
Posted by: Jos | Oct 2, 2008 12:47:26 PM
WTF?
I thought WB was one of the good guys...
My big question for Barry et al: does WB actually believe what he's saying, or is he just manipulating the situation for his own benefit?
We know he's smart, but what he's saying contradicts what nearly all the other "smart" people are saying.
Paulson has America's concerns at heart? WB--WTF?
Posted by: kittyboy | Oct 2, 2008 12:54:28 PM
ARGUMENT IN FAVOR OF THE BAILOUT
I am personally opposed to this particular bailout. But one must also consider political realities. Suppose that we did nothing at this point to solve the problem. The Dems are going to get a three-house sweep in November. In the event that they get 60 seats in the Senate, they could easily go too far in the direction of effectively confiscating capital in an effort to solve the problem. I shudder to think of the sort of proposal that Bernie Sanders would come up with.
Posted by: DL | Oct 2, 2008 1:01:47 PM
Has anybody noticed that our national debt -- soon to be 10 trillion, then 11 -- is greater than the value of the entire S&P 500 (sinking less than 10 trillion).
Maybe it's time to put the keys in the mailbox and give her back to the bank.
Posted by: The Redactor | Oct 2, 2008 1:02:07 PM
WB has shown over and over again that he is not just a Master of the Universe looking to aggrandize his own ego or his consumption of luxury goods like private jets. I think he deserves more credit than those who say he is "talking his book" give him. He is basically giving away his entire personal fortune upon his death. He hardly even spends the money he already has. You don't have to agree with him, but I doubt he is merely "talking his book" for personal gain.
Posted by: Anonymous | Oct 2, 2008 1:13:49 PM
Good call, Redactor. Anyone have the values for the S&P500 and federal debt 8 years ago for a comparison?
Oh, and off this topic but worth noting - the front of Yahoo Finance has this explanation for the market drops today:
"Stocks tumbled and credit markets remained tight Thursday after plunging factor orders and a seven-year high in jobless claims stoked fear that the government's financial rescue plan might not be enough to ward off a recession."
That's LOL funny. Did anyone actually think the bailout plan will hold off a recession? I thought it was to hold off Armageddon.
Posted by: E | Oct 2, 2008 1:18:02 PM
@ Karen:
Disingenuous? You aren't buying that "Aw shucks" act?
Posted by: leftback | Oct 2, 2008 1:20:27 PM
Warren Buffett is nothing more than a Poster Child for the Elite. Damn those assholes.
Thieves steal, liar lie and crooks break the law.
Posted by: notsofastfriend | Oct 2, 2008 1:25:31 PM
I don't know if he is talking his book, but everybody who always follows the same patterns eventually gets tripped up by a new situation. WEB is no exception.
Posted by: wally | Oct 2, 2008 1:26:22 PM
@ leftback,
he might be the greatest "artist" of all time :)
an interesting day, isn't it?
Posted by: karen | Oct 2, 2008 1:30:02 PM
@leftback: Are you sticking with GDX? Looking ugly with a capital "UGLY" today.
D-Train in full throttle today. QID looking better and better every day.
Posted by: Jeff M. | Oct 2, 2008 1:31:53 PM
Maybe Buffet is aware of the gravity of the situation and knows that the financial system (and belief in government for that matter) is based upon confidence and trust and so he is "joining" into the calls to get everyone to step back from the ledge even if he personally thinks it won't work.
This is so uncharacteristic of him, so maybe he is not motivated by greed on this and he is doing this for the country and patriotism.
Don't forget that this 'sham" system has been running like this for decades. It's just now that people have lost confidence.
Posted by: FleeTheShip | Oct 2, 2008 1:32:01 PM
If Warren Buffett was decent human being that really cared for America and not his own self-interest... he would donate all his pennies to the Government now.
Posted by: Mattie | Oct 2, 2008 1:32:42 PM
"WTF?
I thought WB was one of the good guys..."
As a disinterested third party, I think he is one of the good guys. When he has money on the line, his opinion should be discounted.
"In the event that they get 60 seats in the Senate, they could easily go too far in the direction of effectively confiscating capital in an effort to solve the problem."
I am not worried at all. Dems are such a disorginized stew of kooks, special interests, and outright wackos that they they are mostly unable to get anything, good or bad done. There is no orginization with them. It is like herding cats
Just look back to when Clinton first took office and the number one item that the they had a clear mandate for, died a spectacular death. They could not even agree on the most basic ideals and it ended up as much of a bloated mess as this bailout bill.
Republicans though, have the ability to tow the line and respect their leader's direction and vote as a block. Much more dangerous results, as we are now experiencing. Though the Republican revolution with regard to the bailout bill was quite a surprise to me.
Posted by: Blackhalo | Oct 2, 2008 1:33:05 PM
He is 77 years old, and is the richest man in America, if not the world.
What does he give a flying fig?
I think he is sincere . . .
Posted by: Barry Ritholtz | Oct 2, 2008 1:39:02 PM
@Dan:
Bill Gross last week also stated that 700 billion would only be a start. I can tell you that this is the same mentality that Arthur Burns and Jimmy Carter had for some time in the late 70's. Finally Volcker was hired and fixed the mess, but Burns was afraid to let the business cycle have a downturn...
A little different set of circumstances today, but the folks in charge seem paralyzed to have a recession...and I know we keep hearing that if we do allow a slowdown a depression "will result"..but too much Arthur Burns thinking only makes it worse. Yes, his problem was stagflation, but in many ways these two events are very similar...
Posted by: Bruce in Tennessee | Oct 2, 2008 1:44:07 PM
Oh, please. He's a RUTHLESS businessman. And, at this point in his life, it's all about power and protecting his legacy (ego).
Posted by: karen | Oct 2, 2008 1:47:24 PM
So Barry, if WB is sincere, what do you make of his arguments?
Posted by: kittyboy | Oct 2, 2008 1:49:27 PM
He could be 87, and worth twice as much..He'd care, he likes his Bridge games, and the Media's tongue too much.
He's Brilliant, that's for sure, but he knows way more than he's telling..
take a peek at 'Nebraska Furniture Mart', a BRK op, they led in trend in Importing 'Case Goods' from the PROC, helped obliterate an Industry inside 15 years. Ol' WEB, like many others, (not)= to his Headlines..remember, read the whole story, and check the footnotes..
Posted by: Mark E Hoffer | Oct 2, 2008 1:56:50 PM
@ Bruce in TN: One thing is certain. we will have "flation".
@ Jeff M: "it's just a flesh wound".. Yes, the D-train™ is rolling and all of my positions are getting killed. Thanks!! :-) I am day trading some bank stocks to take my mind off the carnage.
Seriously, This is why I didn't want to get too far long ahead of the employment reports. R-train™ still undergoing some engine repairs but you can bet it will be here soon. Market sending another little reminder to the House of Representatives. Watching the close carefully to see if SPX and GDX put in a double bottom here, with the bailout ahead this could be a bullish set-up from here - for a trade.
@ Karen: We all project different things to different people. I wonder what WB is like around the office?
Posted by: leftback | Oct 2, 2008 1:58:45 PM
Buffet knows what Karl Marx knew and it’s the Gorilla in the Closet: Capitalism is a house of cards. Pull a few cards away and the whole thing collapses.
Is he scared? You bet. He knows the worst-case long-run scenario: Even cash will not be king. And it’s not about keeping it in banks… your mattress won’t safe either. The Euro and Yen will be as worthless as the dollar. They will all become paper to build fires with.
Even AU won’t be a store of value. It will be superceded by iron. You can make a better machete with iron.
(But then again, we have Sarah. I’m SURE Sarah can fix it.)
Posted by: TG Randini | Oct 2, 2008 2:00:30 PM
He keeps emphasizing the importance of paying "current market price" for the MBS, etc. I thought the plan was that the Treasury would be paying MORE than current market because current market is "fire sale" price and would render many institutions insolvent if recognized (?)
Posted by: mind | Oct 2, 2008 2:06:04 PM
@ TG Randini:
You really do have your tin foil hat on today....
Posted by: leftback | Oct 2, 2008 2:07:36 PM
