Why did Buffett buy $5 billion of Bank of America stock? Mish suggests that Buffett was just trying to energize financial stocks, in general, as he’s up to the gills in them and puffing them up would allow him to unload all other financials before they go “poof”. That could be it, but I think there was more going on.
Warren Buffett’s most prestigious investment these day is President Obama. If Bank of America had failed – and it is still “one foot in the grave, other on a banana peel” – then it would likely have served as the trigger for a general financial collapse…begin Great Depression II, end of any chance for Obama’s re-election. While this would have hit Buffett hard financially there is still the fact that if you’re worth $45 billion and lose $10 billion, you’ve still got $35 billion left. Buffett remains rich no matter what – ego is involved here.
Buffett has specially bought in to what Obama stands for…his image of himself stands or falls with the success of Big Government liberalism. Buffett told us that Obama was The One; Buffett tells us that if we’ll just tax and spend some more all will be made well; Buffett tells us that it is us knuckle-dragging conservatives who got it wrong. But if Obama fails, then Buffett got it massively wrong. Buffett is not about to be proved wrong by a bunch of bitter-clinger adherents of that worn out, has-been Constitution!
It won’t work – Buffett has seemed like a savvy businessman because he’s piled up huge amounts of cash by milking the Big Government, fiat-money, usury-based economy for all its worth. That economic model, though, has now gone on as long as it can. We’re bankrupt; there is simply no more money to borrow, any more printing will just touch off ruinous inflation…its all done gone up the spout, as it were. Buffett may think that if he throws around a few billion it will change the dynamic…all it will do is delay the inevitable, and not by nearly as much as all of Bernanke’s trillions in fake money. Not only is Buffett about to be proved wrong, he’s also going to be proved a bad businessman…someone who can only make it in a ponzeconomy, but has no relevance to one based on hard work, thrift and careful investment.
UPDATE: Buffett is also relentlessly avoiding taxes…this report shows that he’s arguing with the IRS over taxes unpaid since at least 2002. Yeah, he really wants to pay more…
maybe payback for billions more from the stumpulus boondogle?
Sort of OT, but did anyone ever think that Obama was going to have to work for the black vote in 2012?
If we have any black posters here, I’d be interested in your reaction to the following headline/summary from the Washington Post article summary page linked to the above article:
And from the article itself, how’s this for a disconnect:
Whatever happened to all that Obama Cash from Obama’s stash? You mean he didn’t pay their mortgage, their grocery bill, their car payment and put gas in their car? What do you mean, “fool me once, shame on you; fool me 37 times…..want to try for 38?”
They don’t just need the normal 90% of the black vote for Democrats – they need to at least match the enthusiasm of 2008. Sure, Obama will still clean up in the black vote…but if the black vote is off by even 2 or 3 percent in terms of turnout, then it is goodbye Florida, North Carolina and Virgina…and that is just about “game over” for the ‘Bamster…the really bad news for him is that even with a gigantic black turn out, he could still lose those States…but if he doesn’t get the turn out, then he has no chance, at all.
And if having to fight for the black vote wasn’t enough, there’s this bit of bad news.
More “bad luck” for Barry and the Boyz.
Pass the popcorn.
“Pass the popcorn.”
Popping as we type….
Could be just a way to try and scare Obama in to doing “Card Check” by executive order…but could also signal a willingness to ditch Obama. Alternately, could also signal a realization on the part of Big Labor that they spent tens of millions in Wisconsin and camp up empty…read that the Wisconsin union is laying off staffers. Big Labor may just want to scale back so that when Obama is crushed next year, they at least have the wherewithal to try and rebuild in 2014.
When can we expect Buffet to cut a check to one of these govenmental funds set up to “donate”, give a “gift” or pay more in taxes?
Im voting in the WHITE VOTE………Oh WAIT – there is NONE, and wouldnt that be Raaaaacist any way???
Ahhh, it seems Buffet does not pay his required fair share at the present rates:
Buffet is a shill for obAMATEUR and raising taxes on others. His actions prove it.