Warren Buffet: 'The Financial Panic Is Over'
John Manning
Warren Buffett and Bill Gates Share Their 'Optimism' With Eager Columbia
Business Students
Video here: http://www.cnbc.com/id/33888348
NEW YORK (Reuters) - Warren Buffett, perhaps the world's most admired
investor, said on Thursday the financial panic that gripped the globe
last year is a thing of the past, even as the U.S. economy's struggles
persist.
"The financial panic is behind us," the world's second-richest person
said at Columbia University's business school. "Our economy was
sputtering, still is sputtering some."
Buffett, 79, nevertheless said there is greater opportunity for
investments inside the United States than outside, noting that the U.S.
economy is far larger than any other.
He appeared at Columbia with Microsoft Corp founder Bill Gates, the
world's richest person and a Buffett friend and bridge partner.
Last month, preliminary government data showed the U.S. economy expanded
in the third quarter, the first three-month period of growth since the
second quarter of 2008.
Nonetheless, the U.S. unemployment rate last month reached 10.2 percent,
the first double-digit reading in 26 years.
Buffett last week made a big bet on the U.S. economy when his Berkshire
Hathaway Inc agreed to pay about $26.4 billion for the 77 percent of
railroad company Burlington Northern Santa Fe Corp that it did not
already own.
"There will be more people in this country, 10, 20, 30 years from now,"
Buffett said. "They'll be moving more and more goods back and forth to
each other and the most environmentally friendly and cost-efficient way
of doing that is railroads."
Buffett said rail transport uses one-third less fuel and pollutes the
air less than trucks, and that one train can supplant about 280 trucks.
Gates, who is also a Berkshire director, said other sectors might also
boost the economy over the long term, including information technology,
energy and medicine.
Separately, Buffett advised the U.S. government not to coddle companies
that need bailouts to survive or preserve capital.
"More sticks are called for," he said.
Buffett gave Federal Reserve Chairman Ben Bernanke and U.S. Treasury
Secretary Timothy Geithner "high marks" for how they managed the
financial crisis.
The billionaire has praised Bernanke in the past, while mocking
Geithner's stress tests for banks.
CNBC television was a host for the Columbia event.
Great Dayne
if you only had a brain.
play with fire, scarecrow.
Logan Sacket
What was the federal deficit for October? Go ahead, guess.
$175 billion deficit in the month of October.
SwordoZ
"Logan Sacket" <logan....@gmail.com> wrote in message
news:4b02fa8f...@news.eternal-september.org...
SoZ:
Which strikes fear in both Buffett and Gates.
Ike E 11/05/09
wrote:
>
>
>
> Warren Buffett and Bill Gates Share Their 'Optimism' With Eager Columbia
> Business Students
[snip]
> NEW YORK (Reuters) - Warren Buffett, perhaps the world's most admired
> investor, said on Thursday the financial panic that gripped the globe
> last year is a thing of the past, even as the U.S. economy's struggles
> persist.
[snip]
Yeah, right.
Typically, after every major crash there are secondary crashes (3-5 years
after) and even tertiary crashes (5-7 years after) that take the market
right back down to where it was at the bottom of the original crash (with
the exception of the .com crash, which was industry specific, and not
broad-based)...
Sept. 1929-July 1932 -89.5%
Mar. 1937-Mar. 1938 -50.2%
Sept. 1939-Apr. 1942 -41.3%
Nov. 1961-June 1962 -29.2%
Feb. 1966-Oct. 1966 -26.5%
Dec. 1968-May 1970 -36.9%
Jan. 1973-Dec. 1974 -46.6%
Sept. 1976-Feb. 1978 -27.7%
Aug. 1987-Oct. 1987 -41.2%
Jan. 2000-Oct. 2002 -38.8%
Oct. 2007-Nov. 2008 -47.5%
Now, the question might arise, is the 2008 crash related to the 2000-2002
.com crash?
The answer is not likely, as it had little to do with the current crises,
which is broad-based, i.e. it started with stagnate wages and rising benefit
costs (which was the REAL root cause of the crash), oil and commodities
manipulation (the first symptom), the mortgage collapse caused by liberal
social engineering (second symptom), failing financial institutions (third
symptom), and rising unemployment (cycling back to the root cause).
Once government tries to kick out the props, and once its inflationary
practices start to show themselves, the market will crash again, because NO
ONE HAS FIXED THE ROOT CAUSE, i.e. the exportation of American jobs and
American workers being forced to take pay cuts and lose their benefits in
order to compete against DEFACTO SLAVE LABOR elsewhere in the world.
See, most of you folks didn't see this coming, but those who live in steel
mill country DID, as mill after mill closed because of foreigners dumping
CHEAP STEEL on the market, which resulted in steel workers either 1) loosing
their jobs, or 2) taking massive pay and benefits cuts as the unions were
busted, either by American companies filing bankruptcy, or foreign non-union
companies buy out our mills.
Unfortunately, the root problem hasn't changed, since BO and the congress
hasn't done a THING to address the root problem, so the economy will not be
able to sustain any measure of long term stability, as during the late Nixon
and Carter administrations.
Ike
ATP*
"Ike E 11/05/09" <xhermanei...@gmail.com> wrote in message
news:hdliuk$flj$1...@news.eternal-september.org...
killing the golden goose? When did you lose your job, Ike?
philosophy
> "Ike E 11/05/09" <xhermaneicklebe...@gmail.com> wrote in messagenews:hdliuk$flj$1...@news.eternal-september.org...
>
> > On Fri, 13 Nov 2009 15:14:29 -0200, John Manning <jrobe...@terra.com.br>
> > wrote:
>
> >>WarrenBuffettand Bill Gates Share Their 'Optimism' With Eager Columbia
> >> Business Students
>
> > [snip]
>
> >> NEW YORK (Reuters) -WarrenBuffett, perhaps the world's most admired
Or maybe part of it was the overpaid CEOs who don't give a shit about
the
skilled, overworked American workers, and killed off the golden goose
by
their own greed? Yup, you losers are in for another massive dip,
maybe
next year - you ain't seen nothing yet.
A whole new mindset and policeable rules have to come out of this. No
more overpaid CEOs. Any idiot can take fiscal risks. They need to
curb
their debt, and their pay should be no more than ten times that of the
average worker in their company.
The shareholders should have majority say in what they are paid, after
all they are the ones investing in the company.
Rules should be policed. You bugger didn't do that and now the whole
world will, and has to pay for your ignorance by experiencing a global
depression.
Logan Sacket
Lets limit actors pay to say $100,000/yr. Pro football players to
$50,000 /yr. Why not limit your wages while we are at it. The poor
in your town don't make as much as you. It doesn't matter that they
can't or won't work for their own life, your have more than your fair
share.
If you let the share holders determine their pay, you are in for a
suprise. If the CEO is doing a good job, then they will pay what the
market will bring.
The next big dip down will be when the fed has to raise rates (or
maybe before) and the banks can no longer borrow at almost zero
percent and then buy a 4% bond with the money they borrowed to buy
them. That's the backdoor way that the goverment is giving taxpayers
money to the banks without it going on the books. This is what happens
when you hire GS executives to run your economic show.
philosophy
Well, I disagree. We don't need to have people getting those double-
digit million dollar pay packages. It's ridiculous. Unless I
misinterpret
what you are saying, you are suggesting something like "the poor will
always be poor, so what". Are you saying I have more than my fair
share? If so how do you know? You are guessing. You are making
an assumption. Do you have more than your fair share?
Well, when the next big dip comes next year, the point will be moot.
We'll all be in a depression. And, I don't live in Yankee land so
their system does not apply to me. Thanks.
Logan Sacket
If you take part of my fair share and give it to others, then what is
the incentive for me to achieve and prosper. I'll make what I can up
to the point where they start taking it away and sit out the rest of
the year. Is that what makes a prosperous nation?