Dedicated to Deposits: Deals, Data, and Discussion
Featured Savings Rates
Featured Accounts

Buffett Says Bernanke Should Stay At The Fed

Thursday, September 19, 2013 - 7:58 PM
5
Ally6770Ally6770934 posts since
Jan 16, 2010
Rep Points: 2,719
1. Thursday, September 19, 2013 - 9:37 PM
The poll shows 68% want Bernanke to stay in his position at the FED!!  What is really going on here?
3
paoli2paoli21,401 posts since
Aug 10, 2011
Rep Points: 6,135
2. Thursday, September 19, 2013 - 10:03 PM
If I saw my wealth rise $12.5 billion over the past year, like Warren Buffett, I'd surely want Bernanke to stay right where he is too.
10
ShorebreakShorebreak2,676 posts since
Apr 6, 2010
Rep Points: 14,530
3. Friday, September 20, 2013 - 7:26 PM
Because Warren Buffett has given 50% of his money to the Gates Foundation, and given money to his children for their own foundation, draws only $100,000 a year salary and lives in the same house for the last 40 years I don't think it is cash motivates him. 
2
Ally6770Ally6770934 posts since
Jan 16, 2010
Rep Points: 2,719
4. Saturday, September 21, 2013 - 1:02 AM
Even the Oracle can be wrong sometimes. He was asked in April of 2008 (about 6 months before one of the worst market crashes in history) if he was bullish about the US. His answer, "the economy is going to do fine."

He told the Financial Crisis Inquiry Commission that he underestimated the impact of the crisis and by the time he realized it, it was too late for him to do something about it.
2
loulou552 posts since
Aug 3, 2010
Rep Points: 3,431
5. Saturday, September 21, 2013 - 6:34 AM
Sorry to say, no matter who takes over the Fed, it will be the same-old same-old (problems, issues, complaints, etc.). 

Thus I frankly don't give a D***.:D
3
51hh51hh1,476 posts since
Jan 16, 2010
Rep Points: 6,427
6. Saturday, September 21, 2013 - 6:39 AM
I don't know anyone who is infallible. He has said many times he has been not been perfect with all of his investments. But the issue is he is the richest man who has made his wealth by investing.  I would assume he does know something about making money. And he is committed to giving away 99% of his money so wealth is not what drives him. Here is a CNN story post in April of 2008 when Buffett hosted a 150 Warton students when he said. 

The scenario you're describing suggests we're a long way from turning a corner.

I think so. I mean, it seems everybody says it'll be short and shallow, but it looks like it's just the opposite. You know, deleveraging by its nature takes a lot of time, a lot of pain. And the consequences kind of roll through in different ways. Now, I don't invest a dime based on macro forecasts, so I don't think people should sell stocks because of that. I also don't think they should buy stocks because of that. 

Link to the whole story is below.


What Warren thinks... - Apr. 14, 2008 

I have done a google and found nothing on your quote of Buffet or the context of that "quote". I would like to see that. 
3
Ally6770Ally6770934 posts since
Jan 16, 2010
Rep Points: 2,719
7. Saturday, September 21, 2013 - 7:00 AM
Lou-- I found the paragraph on the quote you cited in the article I posted above.

The American economy is going to do fine. But it won't do fine every year and every week and every month. I mean, if you don't believe that, forget about buying stocks anyway. But it stands to reason. I mean, we get more productive every year, you know. It's a positive-sum game, long term. And the only way an investor can get killed is by high fees or by trying to outsmart the market.  
2
Ally6770Ally6770934 posts since
Jan 16, 2010
Rep Points: 2,719
8. Saturday, September 21, 2013 - 12:57 PM
Ally, I would say he was wrong. The economy didn't do fine. It hasn't done fine for 6 years. The stock market and the economy are two different things. The stock market likes it when the economy does poorly, because that means the Fed will continue the money printing operation. Also, I noticed you didn't bother researching the other quote where he conceded he underestimated the extent of the crisis.

Buffett is quite good at making money but I totally disagree with his politics. He was a huge critic during the Bush Administration about our trading deficits, but haven't heard him say a peep about it in the last 5 years. He is a partisan guy.
3
loulou552 posts since
Aug 3, 2010
Rep Points: 3,431
9. Saturday, September 21, 2013 - 1:37 PM
Lou, These are all the words in the question that was asked.  

Question---But you're still bullish about the U.S. for the long term?


AnswerThe American economy is going to do fine. But it won't do fine every year and every week and every month. I mean, if you don't believe that, forget about buying stocks anyway. But it stands to reason. I mean, we get more productive every year, you know. It's a positive-sum game, long term. And the only way an investor can get killed is by high fees or by trying to outsmart the market.  


You forgot a few words in the question he was asked or chose not to use it all to further your argument. LONG TERM was used. If you are going to quote then use all of the words.  Don't mislead. He was asked if he was bullish long term. Did you read the link to the article in post #6?

As for me looking for where you read something-- you should be able to find the proof for what you saw. I am making cabbage soup, chili, doing laundry and washing windows. I have rubber tree to transplant yet, and wash the car and have to go to out to dinner tonight. So if you want to see the quote you are writing about please look for it. I really don't have the time. I wonder if you used all the correct words or if it was misleading like your post in #8. 
1
Ally6770Ally6770934 posts since
Jan 16, 2010
Rep Points: 2,719
10. Saturday, September 21, 2013 - 1:52 PM
He was wrong. The economy isn't doing fine and hasn't done fine for 6 years. I don't think his convoluted answer suggested the economy wouldn't do fine for 6 years. He completely got it wrong about the last 6 years. It wasn't a matter of weeks, months or a year or two.
4
loulou552 posts since
Aug 3, 2010
Rep Points: 3,431
11. Saturday, September 21, 2013 - 2:35 PM
Well lets hope it doesn't take 25 years like it did after the great depression.

Lets also hope that we are not going to be like Japan. It has been about that long for them. Theirs was caused by the banking system and bad loans and their Keritsu way of doing things. Kind of like our banks getting into investing on the side.  That should give you a clue on how to plan for the next 20 years or more. 

We read and view "But it won't do fine every year and every week and every month" differently. Not sure what he was wrong about in that statement. The economy has had these dips every 7 years lok at RECON on the FDIC site. This time the recession was much worse and it will take a long time to get out of it. Higher rates would give the segment of the population more money to live on but as a segment of the population us old peoople  were hurt much less than others. We have a monthly income, (SS) we have health insurance. We have the experience to cope and deal what is dealt us. 

With this question and answer from the same interview I really don't see where you are coming from.

Question---The scenario you're describing suggests we're a long way from turning a corner.

Answer-- I think so. I mean, it seems everybody says it'll be short and shallow, but it looks like it's just the opposite. 

 


1
Ally6770Ally6770934 posts since
Jan 16, 2010
Rep Points: 2,719
12. Saturday, September 21, 2013 - 5:09 PM
I think you know where I am coming from. He said the economy will be fine; it is not. He also admitted before an official govt entity investigating the cause of the financial crisis that he underestimated the impact of the crisis, and it was too late for him to do something about it when he realized it was happening. I wonder what he would be saying today if the other party controlled the White House.

One thing I will admit about Buffett is that he is world class at accumulating wealth, but contrary to some out there he is no saint. He is a significant owner of Wells Fargo, one of the least friendly consumer-oriented banks with the worst deposit rates. All he cares about is the return on equity of the bank. I have no problem with this but let's not pretend he is concerned about the little guy,
3
loulou552 posts since
Aug 3, 2010
Rep Points: 3,431
13. Saturday, September 21, 2013 - 5:19 PM
 
Asked when he saw the crisis coming: Not soon enough. It was something we talked about at our annual meetings. At one point I referred to it as a bubblette -- I don't remember what year that was. I talked about my home in Laguna Beach, where the implicit value of the land got up to $30 million per acre. But I was aware of the Internet bubble too, and I didn't go out and short the stocks. I never shorted Internet stocks, and I didn't short housing stocks. But if I had seen what was coming, I would have behaved differently -- including sellingMoody's (NYSE: MCO  ) . So I was wrong

http://www.fool.com/investing/gen...l-cris.asp 
2
Ally6770Ally6770934 posts since
Jan 16, 2010
Rep Points: 2,719
14. Saturday, September 21, 2013 - 5:31 PM
So I am right! He didn't see what was coming and would have behaved differently if he had. Bottom line, he admitted he was wrong.
3
loulou552 posts since
Aug 3, 2010
Rep Points: 3,431
15. Saturday, September 21, 2013 - 5:40 PM
Take a look at Buffet saying very clearly he was wrong about the housing bubble:

http://www.youtube.com/watch?v=1pFiTApjHPU

 

Pick it up at around 1:38.

 

 
2
loulou552 posts since
Aug 3, 2010
Rep Points: 3,431
16. Saturday, September 21, 2013 - 5:55 PM
A few other quotes from the commission inquiry:

"But, he says, almost everyone in the country got caught up in "the greatest bubble I ever saw." He includes himself in what he calls a mass delusion. "I was wrong on it, too." He compared rising housing prices during the bubble as a "narcotic" that affected everyone's reasoning power "up and down the line."

The chairman of the Financial Crisis Inquiry Commission, Phil Angelides, pointed out to Buffett that there were warnings from some observers and investors at the time, and he accused Moody's of not doing enough to understand the complexities of the structured products it was rating. Buffett replied that while "the Casandras were there" during the housing bubble, most people didn't take them seriously.

Buffett was referring to John Paulson who shorted sub-prime mortgages and made over a billion dollars as a result. Contrary to Buffet's assertions, there were many other investors who saw this coming and took steps to protect themselves.
2
loulou552 posts since
Aug 3, 2010
Rep Points: 3,431
17. Sunday, September 22, 2013 - 10:05 AM
Easy for him to say, since he doesn't have to worry about income.
3
MaeclMaecl82 posts since
Jul 6, 2010
Rep Points: 658
18. Sunday, September 22, 2013 - 11:06 AM
Remember the best sellers "Great Depression of 1990" "Dow 30,000" Some get it right and some get it wrong. Buffet is richest man in the world who made it by investing.  So he must be right more than wrong but still  receives only $100,000 income and lives in the same house for over 40 years gave 50% of his wealth away to the Gates Foundation, set his kids up with foundations and says he will give away 99% of everything he owns before he dies.

He walks the walk. 

 
1
Ally6770Ally6770934 posts since
Jan 16, 2010
Rep Points: 2,719
19. Sunday, September 22, 2013 - 11:34 AM
Lets also remember that Buffett wants the government to take in more money while he wants the ability to give his wealth where he wants. I'm sure his kids have a trust fund.  I find him disingenous.
2
MaeclMaecl82 posts since
Jul 6, 2010
Rep Points: 658
20. Sunday, September 22, 2013 - 12:15 PM
" says he will give away 99% of everything he owns before he dies."

Is Buffet so rich he can know just when he will die?  He's already 83 years old!  What is he waiting for?   I wonder if he takes requests from strangers?  I sure would love to be on his list of getters. :)
3
paoli2paoli21,401 posts since
Aug 10, 2011
Rep Points: 6,135
Reply