Posted on 08/06/2011 12:23:30 AM PDT by Clairity
Berkshire Hathaway Chairman and CEO Warren Buffett told the FOX Business Network that S&P's downgrade of the United States' triple-A credit rating "doesn't make sense."
"I don't get it," Buffett told FBN late Friday night. In fact, Buffett reaffirmed his belief in the quality of the United States' credit telling FBN, "In Omaha, the U.S. is still triple A. In fact, if there were a quadruple-A rating, I'd give the U.S. that."
Buffett told me tonight that Berkshire Hathaway's T-bill exposure is significant.
"We just filed our 10Q and we have $47 billion in cash and cash equivalents. Well over $40 billion of it is in short end T-bills. (Tonight's S&P downgrade) doesn't tempt me to sell. We'll stay right there."
(Excerpt) Read more at foxbusiness.com ...
If the rating agency tells you that you need to cut 4 trillion dollars to maintain your AAA rating and you only produce 2 trillion dollars in fake cuts I can see why they would cut your rating. Perhaps I am stupid but I can understand why they downgraded our credit rating. I guess that when I get as smart as Buffet and Obama I will understand where my logic is flawed.
Warren! See what happens when you give your allegiance to Marxist nitwit economists? They make you look like a nitwit!
If he doesn’t get it, let me explain it to him.
The US is, soon-to-be, 17 trillion dollars in debt and the politicians haven’t shown any sincere interest in creating a plan to get out of debt.
It’s that simple.
I have a lot of respect for Buffet. So far, this is the only thing I have seen tonight that has been reassuring.
What Buffett didn’t disclose in his 10-Q is that he also has a significant investment in Obama.
So far, this is the only thing I have seen tonight that has been reassuring.
Buffett is talking his book, that's all.
I don’t think the impact on the markets on Monday will be that great - although I have been very wrong in predicting market reactions before. This action was largely priced into the market this last week, I think.
The greater impact is the loss of US prestige.
latest:
U.S. Debt Rating in Limbo as Treasury Finds Math Mistake by S&P in Downgrade Warning
“After two hours of analysis, Treasury officials discovered that S&P officials had miscalculated future deficit projections by close to $2 trillion. It immediately notified the company of the mistakes.
S&P officials later called administration officials to say they agreed with the administration’s critique, though they did not say whether it would affect their rating. White House officials remained waiting Friday evening to see what the company would do.”
“This action was largely priced into the market this last week, I think.
The greater impact is the loss of US prestige.”
I agree.
Quite right about Buffet. He’s an Obama lickspittle of the first magnitude. Disgusting!
Thank you, Warren; I was beginning to thing the high gas/grocery prices were real, instead of a figment of my imagination.
Like the Romanovs, you’d best hope there are enough devotees to keep the lie going. Like the Romanovs, I really don’t care if there isn’t.
Good one.
S&P Downgrade May Cloud Obama Re-Election Bid Even as It Damages Congress
Hope Republicans remind the voters in before Nov 2012.
Bill Gross dumped treasurys in March.
Buffett’s boy king is hurt by this downgrade.
Buffy can’t figure out why O’bummer couldn’t rein in a rating agency’s threat to downgrade the US. Now that the downgrade is in place, Buffy is really confused because there is nowhere to hide now with bankers treating O’bummer like a lame duck president.
Notice Buffy is only holding short term paper because even a blind man sees holding long term paper when price inflation takes hold in earnest would be a losing position.
Enjoy oil’s price drop while it lasts.
Try this one on for size and read past the first couple sentences and paragraphs:
It’s like a bunch of rich guys running around acting altruistic and claiming the death tax should be reinstated or at higher levels.
What they don’t tell you is their holdings include companies who profit from estate planning, income shelter, etc.
If the government has no death tax it is a direct competition to the insurance companies, law firms, Wall Street, etc.
Without the death tax there is no need for their services and such stringent estate planning.
Here is an excellent video explaining Warren Buffet and Berkshire-Hathaway. Get a cup of coffee and watch it. You will see the scheme explained and then you will get it.
Also note what companies he has acquired, how and why:
Why This Superrich Guy Likes High Taxes
http://www.xtranormal.com/watch/8035391/
Warren Buffett Benefited From Death Tax
http://www.humanevents.com/article.php?id=15951
Wanna know why Buffet pushed for TARP bailout?
Suffice it to say Berkshire owned stock in some largest receipents of TARP valued at $13 billion around that time.
Here is the funny part:
Buffett increased his bank holdings in September, while he was arguing in the media that Congress should approve the bailout to prevent the collapse of the global financial system.
TARP was approved in October of that year, just one month later!
It’s good to be king!
He actually said “if he didn’t think the government was going to act(in a way that would positive and accretive to hihis holding) he wouldn’t have been doing anything that week”. (paraphrased)
For more read here:
http://www.mcclatchydc.com/2009/04/05/65496/buffett-champion-of-bailout-is.html
BofA in April 2009 was around $4 per share and is now trading at $13.80 per share as of 3/02/2001
Wells Fargo in April of 2009 was around $11 per share and is now trading at around $31 per share.
How about US Bancorp trading at around $14 per share in April 2009 and now trading at about $26 per share.
Goldman Sachs Group trading at some $51 dollars per share has now zoomed to above $160 per share.
How about those poor folks at American Express trading at just above $10 per share in 2009 and now they are trading at about $45 per share?
Bottom line: We, the schmuck taxpayer, paid to enhance the holdings of companies like Berkshire and investors in Berkshire.
Does Buffett think that debt 100% of GDP is a joke for S&P to chuckle over?
If he invested in companies ignoring such debt ratios, he’d be penniless.
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