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TMFEditorsDesk (< 20)

Stimulus and Viagra..just another day of Buffett wordplay

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July 09, 2009 – Comments (12) | RELATED TICKERS: BRK-A , BRK-B

This morning, Warren Buffett, head honcho at Berkshire Hathaway, shared some thoughts about the economy on "Good Morning America." He said he wouldn't be surprised (but is not predicting) if unemployment reached 11% and that a second economic stimulus package might be needed.

Some quotes from his brief interview:  

"We're not in a freefall, but we're not in a recovery either. We were in a freefall, really, in the last quarter of the last year, starting in the financial markets and then spreading to the economy. And we had this huge change in behavior, that change hasn't changed."

"I want to emphasize that we're going to come out of this. The best days of America by far, lie ahead. But not next week or next month, I don't exactly [know] when we will come. We will come out big time."  

"A stimulus is the right thing. You hope it doesn't get watered down in many ways. Our first stimulus bill, it seemed to me, was like taking a half a tablet of Viagra and then having also a bunch of candy mixed in, as everybody was putting things in for their own constiutencies, it doesn't have really quite the wallop that might have been anticipated."

"I don't think [TARP] was done in a very sophisticated way, but I think anything that restored confidence was probably useful, even if there might have been a fair amount of window dressing to it."

"I do not like the idea of any kind of a plan [public-private plan] involving the government where Wall Street makes a lot of money...I think Wall Street owes the American people one at this point."

What do you think about Buffett's comments? Let me know below.

-- Katrina, doesn't own shares

12 Comments – Post Your Own

#1) On July 09, 2009 at 12:28 PM, chk999 (99.97) wrote:

He's probably right. I really wish Obama would pay more attention to what Warren says about economic policy matters.

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#2) On July 09, 2009 at 12:43 PM, MattH42004 (30.63) wrote:

Agree with chk999. I would be much more comfortable knowing Warren had Obama's ear on economic policy. Unfortunately what's done is done and that ridiculous excuse for a stimulus is already in the books. The part about Wall Street owing the American people one is interesting. Of course, Buffet already got his piece when he got those 10% preferreds with conversion rights from Goldman. The American people are still waiting on theirs...

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#3) On July 09, 2009 at 2:08 PM, SkepticalOx (99.46) wrote:

It's not as if Obama doesn't have more moderative and conservative economic advisors already having his ear. Larry Summers is another one.

It just seems that Obama is doing exactly what the American people as a majority wants (even if what they want is the wrong thing). He still has a high approval rating, despite all the hoopla about tea parties.

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#4) On July 09, 2009 at 2:14 PM, kfisherprotege (30.90) wrote:

"...was like taking a half a tablet of Viagra and then having also a bunch of candy mixed in"

America would have been better off with the whole tablet.  And no M&Ms. It would have made for an interesting recovery anyways. ;)

As brilliant as he is in assessing value and growth potential, Warren Buffett also benefited from an unprecedented age of post-war growth and prosperity.   He sees another, even greater age to come.  Perhaps not in his lifetime, but hopefully in mine.

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#5) On July 09, 2009 at 2:47 PM, TMFKopp (97.85) wrote:

There are so many things running through my head after reading that Buffett analogy. Alas, none of them are fit to print...

Matt

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#6) On July 09, 2009 at 2:51 PM, farmnut1985 (34.68) wrote:

If Clinton were president during this.......................................

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#7) On July 09, 2009 at 5:44 PM, TMFEditorsDesk (< 20) wrote:

Here's a link to the Buffett/Good Morning America interview:

http://abcnews.go.com/Business/story?id=8039651&page=1

-- Katrina

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#8) On July 09, 2009 at 5:57 PM, prose976 (< 20) wrote:

Buffett has become such an icon that people actually buy in to what he's selling.  He's a capitalist, plain and simple, and he will say and do whatever he needs to in order to support his goals.  The only interest in this country he has is the money he can make from the stock he has invested in the United States.  If he could do better elsewhere, he would pledge allegience to that place.

He is weilding his influence and power to achieve one goal, and that goal is not for the health of the United States of America, but for the health of his invested interests, here and elsewhere in the world.

People like Warren Buffett are quick to jump on a soap box when they need to push things in their direction, but their now really about change for the better...just change for their betterment.

I'm a capitalist just like eveyone else that invests to make money, but I believe it's extremely naive to follow this so-called "oracle" around as though he were some kind of investing God.

Sure, he's made millions and billions, and given it all away to charity.  Wow, what a great way to give back to the country that enabled you to make those billions.  Same goes for Obama.  Her'es a man who claims everything needs to change in this country, yet this country, BEFORE HIS PROPOSED CHANGES, is exactly where he was elected President.

What a bunch of talking heads and pitchmen.

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#9) On July 13, 2009 at 11:02 PM, dividends4ever1 (< 20) wrote:

I used to have alot more respect for Buffet when he was NOT on TV as much and NOT giving away all his investment ideas just to satisfy the cravings of the financial media 27/7

 

www.compdivplan.com 

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#10) On July 13, 2009 at 11:58 PM, swingtrader930 (28.44) wrote:

Warren is right on most counts.  The economy has not yet recovered.  We have not had an earnings season with increases yet.  Our descent has just slowed down.  A good portion of TARP money was wasted.  I cant help but feel we would have fared better improving infrastructure than bailing GM and all the banks out.   Auto investments are never good even when they are making money.   There's not enough profit and too much capital expenditure.   My vote would be for a high speed electric train system linking various business hubs across the country, or renewable energy infrastructure. Half a Viagra is better than no Viagra.   swingtrader930

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#11) On November 27, 2009 at 5:56 AM, marlena21 (< 20) wrote:

Buffett has become such an icon that people actually buy in to what he's selling.  He's a capitalist, plain and simple, and he will say and do whatever he needs to in order to support his goals.  The only interest in this country he has is the viagra money he can make from the stock he has invested in the United States.  If he could do better elsewhere, he would pledge allegience to that place.

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#12) On November 29, 2009 at 6:29 AM, ozzfan1317 (82.22) wrote:

Unfortunately hes probably right I do think that once unemployment hits 10.5% we will be close to its peak however we need to be more assertive with stimulus spending towards infastructure and Improved communication and medical record keeping as promised.

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