Warren Buffett Wisdom

Call my crazy, I’ve always had a small fetish for economics, investing, capital markets, etc. I even was a stock broker for a couple years in Denver. I’ve been trying to make sense (as most everyone has) of the credit meltdown and its cataclysmic domino effect.

Warren Buffett, one of our wisest financial voices, did a 30 minute interview on CNBC, and he explains a couple of the angles of what we are up against (and solutions) about as good as anyone I’ve heard. One thing I found very interesting was his belief that this bailout may well actually end up being a profitable investment for the government coffers. Buffet’s words: “If I could borrow 700 billion at treasury rates [the interest rate the government will pay for the capital to make this investment, aka “bailout”] to buy these assets at these prices, I’d be doing it.”

(this is 30 minutes long, but the first 10 give a good overall perspective)

4 Replies to “Warren Buffett Wisdom”

  1. Of course, Buffett’s right. Most of the American public will only gripe, of course, but our government has a strong chance at profiting. Let’s just hope that this does not lead us to a socialism that kills all economic action.

  2. This stuff is way over my pay grade (stole that from Obama) but I think we’re on the fast-track toward socialism or some other type of system. A form of universal health care is inevitable in the near future. Corporate greed makes a mockery out of the free market system. Sin and selfishness taints everything, from welfare to Wall Street. It seems to me that our country is quite bipolar. On one hand we’re an Oligarchy (rule by the few rich) yet the masses must be appeased by the promise of life, liberty and pursuit of happiness. The next generation must have it better than the previous generation. The “poor” must have a living wage, regardless of their employment status. So politicians must tell people what they want to hear (aka, the bread and circuses of Rome.) The USA is still a great county, but I don’t know where we’ll be in 20 years. I do know that God continues to reign while kingdoms rise and fall.

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