Thank you, Guvment

[GGT]

Didn't AIG and Banks do the same thing, using TARP and TALF money to pay loans and counterparties?

[Being]

Yeah, then he proceeded to invest heavily in Goldman Sachs, who had huge exposure to AIG (and all their derivatives). Berkshire Hathaway is deep into insurance and financial companies (and all their derivatives). He became victim to the falling dominoes. That's why he's thanking the gummint now.

Oh, and I forgot to comment on this post: He was strong-armed into the Goldman Sachs purchase. He had spent 10+ years divesting his companies of derivatives.

[GGT]

I still don't see Buffet's sarcasm in that letter. In fact, there are plenty of comments about it on web sites, but none that saw sarcasm. Not that I can find anyway....

[Being]

I think this is the wrong look entirely. I think we could have been in the much worse scenario of having giving them money with no strings, and not in the form of buying stock. Arguably we NEEDED to do it to avoid dire consequences, we expected loss, financial loss this is a way to minimizes our losses with providing the necessary bail outs. I just wished they forced management to be rotated out over the years and fined them heavily.

What did you expect on the bail out? I think this is a good outcome.

I expected Capitalism to work its magic and replace a failed industry with something more innovative. Bailing out failed industries only prolongs the inevitable. And doing it with money borrowed from China is just downright irresponsible. Why didn't we raise taxes to pay for it so we aren't stuck with the interest payments for the next 500 years?

[Being]

I still don't see Buffet's sarcasm in that letter. In fact, there are plenty of comments about it on web sites, but none that saw sarcasm. Not that I can find anyway....

What can I say? I am...unique.

[Lebanese Dragon]

I expected Capitalism to work its magic and replace a failed industry with something more innovative. Bailing out failed industries only prolongs the inevitable. And doing it with money borrowed from China is just downright irresponsible. Why didn't we raise taxes to pay for it so we aren't stuck with the interest payments for the next 500 years?

Well in the long run perhaps we can break down industries and revamp, but to have simulataneouly collapse of many large industries in the short run would be devastating. I think we made the correct call in saving our industries, and perhaps in the future they will show they still have a role (after their restructuring) or show that we should be out of the car business all together, for example, in the long run. And that we need to focus on what our comparative advantages are. But for now we did the right thing, and we did it more or less in a manner I'm happy with.

My biggest concern is preventing future moral hazards, where they want to play risky and then don't get burned for it. I think the only way to offset that is to bail out only in last resorts, and to have massive fines and firing on management that it's not worthwhile for them to do it.

[GGT]

What can I say? I am...unique.

Yes, you are.

IMO, Buffet's little Thank You note was meant to quell all the recent criticisms toward the Federal Reserve and Treasury Dept. If one of the world's wealthiest men can have Trust in their monetary policy, then we should too. If he has Confidence in government fiscal policy, then we should too. If Buffet can admit he didn't really understand what was going on behind the curtains, but it worked out just fine, then we don't need to worry about the men behind the curtain. We The People should just relax and go shopping for the holidays. Etc.

[Being]

Yes, you are.

IMO, Buffet's little Thank You note was meant to quell all the recent criticisms toward the Federal Reserve and Treasury Dept. If one of the world's wealthiest men can have Trust in their monetary policy, then we should too. If he has Confidence in government fiscal policy, then we should too. If Buffet can admit he didn't really understand what was going on behind the curtains, but it worked out just fine, then we don't need to worry about the men behind the curtain. We The People should just relax and go shopping for the holidays. Etc.

Assuming your opinion is accurate, will it work? Does Buffett think it will work? But, I question his sincerity in that letter because he is glorifying the same entity that forced him to give up his strategy of staying out of derivatives. He was practically forced by the Fed to purchase large amounts of what he had labeled "financial weapons of mass destruction". He spent 10+ years convicing his shareholders that buying companies and divesting them of derivatives was the only sound way forward.

[GGT]

Do I think Buffet's public Thank You note will inspire millions to suddenly have Trust and Faith in the freeeee markets? Nope.

I think someone planted the idea in his head that it might, because of his wealth and good reputation. Also because (to millions) he has a better track record than the gummint. Ironic, huh.

[Being]

I still don't see Buffet's sarcasm in that letter. In fact, there are plenty of comments about it on web sites, but none that saw sarcasm. Not that I can find anyway....

Well, here you go then,

Is Warren Buffett Capable of Sarcasm?

[GGT]

Even if our theory proves false, it's still fun to imagine Warren Buffett saying in his charming Midwestern voice, "Hey America! Thanks for nothing," his tone ringing with pure sarcasm.

Well, he is full of contrary behavior. Still living in his same modest Omaha home, dining on cheeseburgers and Cherry Cokes, while flying his private jet to make billion dollar deals around the globe.