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What do you guys think of this?

samson

Joined
12/29/07
Messages
6
Points
11
http://www.reuters.com/article/ousiv/idUSL2422759120080524


BERLIN (Reuters) - The United States is already in a recession and it will be longer as well as deeper than many people expect, U.S. investor Warren Buffett said in an interview published in German magazine Der Spiegel on Saturday.
He said the United States was "already in recession" and added: "Perhaps not in the sense that economists would define it" with two consecutive quarters of negative growth.
"But the people are already feeling the effects," said Buffett, the world's richest man. "It will be deeper and last longer than many think."
But he said that won't stop him from investing in selected companies and said he remained interested in well-managed German family-owned companies.
"If the world were falling apart I'd still invest in companies," he said.
Buffett also renewed his criticism of derivatives trading.
"It's not right that hundreds of thousands of jobs are being eliminated, that entire industrial sectors in the real economy are being wiped out by financial bets even though the sectors are actually in good health."
Buffett complained about the lack of effective controls.
"That's the problem," he said. "You can't steer it, you can't regulate it anymore. You can't get the genie back in the bottle."
 
I'm not an expert and I don't have time to worry about what Buffet or some newspapers say. Everyone is entitled to their opinion. I only care about how I take the best advantage of whatever the situation I am in.
Warren Buffet said derivatives are "financial weapon of mass destruction" and that "you shouldn't buy something you don't understand".
Does it stop the derivatives market from booming? I don't think so.
There are plenty of people on Wall Street who ignore everything Buffet or any Nobel winning economists have to say. They will just go on about their business.
Just look at the structured finance, sub-prime, credit derivatives business. If it works out, everyone is happy. If not, people got laid off and go find something else to do.
“If you went to school and you studied this industry and you studied economic cycles, why are you now surprised that this is happening?” he said. “It’s like going into politics and saying, ‘I didn’t know I could be voted out of office.’ ”
 
For someone who has taken great advantage of being an American, Mr. Buffet is notoriously bearish on America. And for someone who is portrayed as keeping a low profile, he still manages to get all his soundbytes well publicized. When your net worth would move markets, it might pay to be very strategic in your utterances.

There are some theories about the super-rich and unassuageable consciences, but who knows about that.
 
About the derivatives business: I say this:

Leave your soul at home. The bets you will be making will decide the lives of many John and Jane Does somewhere out in Nowheresville, USA.

My answer: So what? I'm not John or Jane Doe, and I don't care about them. I care about myself, and I care about those and that which are dear to me. I don't have the resources to care about every person in the world, and I won't try to. I believe that everyone will be better off if they see to themselves being the best off they can be in any situation they're put in.

In short, I agree with Andy. Kudos on your statement.

As for the recession, this is why I want to become filthy stinking rich. Not for the sake of buying toys left and right or living in a mansion, but so I never ever have to go stressing out over how I'm going to put food on my table, and so I have enough money to do with my time what it is I myself want to be doing with it (fine...or whatever my family wants...whenever it is that I marry and have children...I'm only 21 >_<), and to be the master of my own life.
 
This recession color from Mr Buffet did evoked a lot of emotional response. This time recession is different. This time healing will be slow
 
There are will always be higher highs and lower lows, the nature of the beast; we shall continue our business as usual...
 
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