I lost all respect for Buffett when I read the story on how he disowned his step-granddaughter and wrote her off completely. No adult with a smattering of human decency treats a child like that... especially a public demigod like he's supposed to be. Real role model. Since then I don't read one word written about him or especially by him. Better off ignoring his very existence, it appears
Buffett Interview on YouTube below, the SP500 futures comment is in Part2 Guys this is proof that America is going to the toilet, in China they just introduced index futures a few months ago. If the eminis get banned in the good ol USA then traders will go ... to China???. Apparently the chinese realized that index futures free market speculation decreases market volatility so markets get more stable with more speculation. Meanwhile in America speculation is becoming a bad word. Who's the socialist here??? Basically Buffett doesnt want people trade stocks or minis on "tiny margins". because it's gambling. Well at least the little people post margin. The big banks trade the toxic OTC fixed income crap like CDOs without posting any margin!! When their trades go deep against them they go broke easily because they lack the discipline imposed by margins. Imagine going long 200 eminis without posting margin. S&P goes up 100 points you just made 1 million. The market goes down 100 points, the Fed and the Treasury bail you out. That's what banks do. Part 1 http://www.youtube.com/watch?v=rL7qG8cQUzs Part 2 http://www.youtube.com/watch?v=uqTWdjtJqEo Part 3 http://www.youtube.com/watch?v=h0DyBb3lfCo Part 4 http://www.youtube.com/watch?v=votc8WkauWI Part 5 http://www.youtube.com/watch?v=ska-tNJ8uA8
They always blame the little guy. Remember the tech bubble was also caused by those pesky retail day traders. They blamed the bubble and the crash on them. What should be against the law is the Fed secretly buying billions and billions worth of index futures to create this current bubble. When it pops, and so many start to feel regret at having put their money back in the market again, again they'll blame retail traders and won't mention the Fed.
When I saw the Buff support Obama for President I realized that senility was creeping into his mind. It appears to be affecting him at an accelerating rate. The man know not what he sayeth.
Individual futures traders do not cause systemic risk. We're subject to pretty strict margin requirements even though we have access to great leverage. Our firms watch our margin like a hawk. He has no idea. If he's against trading, how can he be an investor? Investing is simply trading in ultra slow motion. Objectively, individual futures traders take relatively small risks which help provide liquidity and price discovery for hedgers and practical users of the markets. A casino is a place where people can take huge risks and it serves no purpose whatsoever. Why not go after them since he mentions them?
Stupid old fool. The problem is everyone who knows nothing will believe he knows all and will agree with his stupidity.
Buffet now is on the side of Goldman Sacks - get rid of all invididual traders so that big banks have monopoly in these trades. Buffet has joined the Goldman Scum!
I can do what Buffett did... watch the 200 week SMA on the DJIA, when price is below that, load up on quality companies that pay dividends... then get to know the management and the companies so well that you can sell covered calls with no risk whatsoever.. rinse and repeat and let it compound... play side games with commodities or whatever you can get your grubby paws on with the excess cash when the 200 week average is not in the shape to buy companies... What is he commenting on index futs traders for? I think he is very self serving typically but that does him no good at all.. some really successful people are big assholes and not even that bright in a lot of ways, I guess his pot is cracked and it's showing more as he ages?
Yep, never seen an hypocrit like him. The best part was with the bank tax. Buffett: "Let's tax those who caused the crisis and create a Tobin tax on speculation. We should even help poor people with it" Obama: "Even better Warren, let's really only tax the big banks responsible for this mess and let small people continue to invest" Buffett:" Hum, well, good idea, but... Goldman, you know...Berkshire..." altruist extraordinaire...