Paulson, the President, others say Mr. Buffett has them on speed dial. An actual position in gov't means your assets go into a blind trust. Mr. Buffett advises how to rebound HIS OWN derivatives positions at taxpayer expense (see link), while avoiding the responsibilities of gov't office. The economy isn't allowed to crap out and give new price signals - this would hurt the ENTRENCHED PLAYERS most. http://www.bloomberg.com/apps/news?pid=20601087&sid=a6FeucgVXUXk&pos=1
Buffett was bargain shopping while others were selling or shorting. His long positions in the equity index derivatives are transparent. You can read the 2009 report here where he ends with his usual invitation:
I think to say buffet is using his clout now or anytime is true but in relation of the magnitude of the problems in the us/world - even buffets book is paltry.
I hope some Congressman has the temerity to ask Buffett on Wednesday, how his advice to the government effected his own long positions in the stock market!
What exactly is the problem? If the advice benefits Buffet (since he has LONG positions), then it probably benefits you. A rising tide lifts all boats.
I do think Buffet is kind of a scumbag, and not the nice old selfless middleclass man with billions in networth from Omaha whom we are all told he is. He probably does use his clout with government to at least gain information that lets him make bets more prudently than any of us can. However, based on the time horizon of his trades, along with the transparency with which he must undergo (yes - I know he gets delayed SEC filings so his positions aren't "front run"), I don't think he's quite using the government to help him pump and dump. If something he's involved with makes his longs go up say, 2% - I doubt he's selling into it. I think it's more abstract and harder to directly piece together exactly how Buffet uses his political connections to benefit his networth. I'm sure he does it now, and has done it extensively during his wealth building phase, but ehh. Nothing so blatantly corrupt that we can all see it. Maintaining his image is without a doubt his number one priority.
Saint Warren was at the White House again today. We'll see how he "front runs" this new recommendation he has given the President. My Prediction: We are getting a new taxpayer-funded stimulus that will benefit Warren's longs and massive short put position. But doesn't everyone benefit? NO. Anyone that plans to live in the future will pay to support the EXISTING, ENTRENCHED players.
I have no respect for Warren Buffett even though he is from my home town. The guy has little moral values even though he tries to spin things the other way.
I thought so. Warren Buffett, the saint, your friend, caught with his hand in the cookie jar. Goldman got billions in TARP funds. And, billions more went to save his short put positions. In a French museum, I once felt my pocket being picked, and I caught the guy. If Buffett was there, I wouldn't have known it til I got back to the hotel! You never even feel it, even when you know it's comin'! http://www.slate.com/id/2276916/
Like most industries but perhaps more than most, the insurance industry benefits massively from government loopholes and special privileges. It even benefits mightily from the estate tax, as paying the estate tax is a major reason small businessmen (huge buyers of insurance products) buy life and other forms of insurance. The fact that insurance portfolios can grow tax free, while most of our own savings cannot, is another huge benefit (similar to how 401k legislation on differed taxes gives that industry a boost). The idiotic mutual fund industry is, after all, largely driven by 401k plan money. If not for that most would (i think) realize the industry is completely useless. The last thing the very wealthy want is a free market, as free market = competition. Warren is, in fact, very clear about this. He has always preferred cronyism and special "protective motes" none of which is better than one written into the laws. What enormous dividends his low spending, "homespun" lifestyle, and liberal beliefs have paid! By the way I am a fan of warren buffet and have studied his writings extensively.