It Is Time To Bring Out Buffett
This afternoon, the major stock indexes have once again rolled over reversing a 200.0 point rally on the Dow Jones Industrial Average (DJIA). The talking heads in the financial media continue to talk about the recovery from the 2008 financial crisis, meanwhile, we are still in that very same crisis. Stocks such as J.P. Morgan Chase & Co (NYSE:JPM), Bank of America Corp (NYSE:BAC), and other financial giants continue to look terrible on the charts. Investors are still waiting to hear and see the central banks inflate the markets higher again in that typical Keynesian fashion. So far, we can see how much that money creation approach has gotten us. The stock markets have not yet gone into panic mode, however, stock prices continue to decline and fear is beginning to creep in.
Tomorrow, the world's most famous investor, Warren Buffett, is going to appear on CNBC. You know things must be getting bad when everyone's favorite Keynesian is going to make a television appearance. Sure, he will tell everyone to buy stocks when people are fearful, however, he knows that he will be bailed out by the government if his trade goes bad. He was bailed out in 2008 when he invested in Goldman Sachs. That was just about as a trade as I have ever seen. Now Mr. Buffet has invested in Bank of America, many investors jumped right on his band wagon when he bought those preferred shares. That stock is underwater from that time and a lot of investors are underwater with him. This guy has benefited from bailouts more than anyone on the planet. You know things are getting bad when Warren Buffet has to come out from Omaha and make his save the market TV appearance.