Billionaire Warren Buffett, calling turmoil in the markets an “economic Pearl Harbor,”
said his $5 billion investment in Goldman Sachs Group Inc. is an endorsement of the
Treasury’s $700 billion bank rescue plan.
“I am betting on the Congress doing the right thing for the American public and
passing this bill,” Buffett said on cable channel CNBC today. “I certainly have a
vote of confidence in Goldman and vote of confidence in Congress.”
“It’s not like Pearl Harbor where you could look at what happened with your own
eyes and decide you had to do something that day,” Buffett said on the cable channel.
“This is sort of an economic Pearl Harbor we’re going through.”
So Buffett thinks this is like Pearl Harbor? I think it is more like the Cuban Missle Crisis.You have a standoff of epic proportions. After 8 years of President Bush and 2 years ofa democratic do-nothing Congress – it’s all ripe for a nuclear launch.
You gotta believe that Buffett knows something we don’t know. I am sure if someone
drilled down they could find plenty of campaign payoffs from Buffett owned investmentsto these same democrats who are gambling now. They control the chips and McCainknows it. But this is a big gamble for either side.
— George Soros, the legendary financier, philanthropist and bestselling author,
has written a new book, The New Paradigm for Financial Markets:
The Credit Crisis of 2008 and What It Means.
Mr. Soros’ opening sentence summarizes his sense of urgency about the turmoil
in the financial world, where he is one of the most successful and enduring of investors:
“We are in the midst of the worst financial crisis since the 1930s.”
Hmmm, that sounds like an Obama line.
From the introduction:
“Every bubble consists of a trend and a misconception that interact in a reflexive manner. There has been a bubble in the U.S. housing market, but the current crisis is not merely the bursting of the housing bubble. It is bigger than the periodic financial crises we have experienced in our lifetime. All those crises
are part of what I call a super-bubble—a long-term reflexive process which
has evolved over the last twenty-five years or so. It consists of a
prevailing trend, credit expansion, and a prevailing misconception,
market fundamentalism (aka laissez-faire in the nineteenth century),
which holds that markets should be given free rein.
The previous crises served as successful tests which reinforced the prevailing
trend and the prevailing misconception. The current crisis constitutes the
turning point when both the trend and the misconception have become unsustainable.”
And you see the problem? This crisis was started and excerbated by poor government policies.Caused by social engineering by well-meaning but flawed individuals. The democratsare so dis-connected on this issue. It is incredible to me that these men who caused themeltdown are still in the middle of it. It is incredible to me that these men have not resigned inshame. It is incredible to me that these men stand in front of TV cameras and act like theyare saving the world. And it will be most incredible if these men get re-elected. I havea strong suspicion that McCain is asking for their resignations. And I think most of theRepublicans will back them up. It might get real rough here for about three months butI sure the markets will come back. Sometimes you have to bluff your opponents all the waydown after you jump of the cliff. You just hope that you can land on top of them.