Warren Buffet says he's buying American

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Buffett on the dollar & inflation.

"Today people who hold cash equivalents feel comfortable. They shouldn't. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value. Indeed, the policies that government will follow in its efforts to alleviate the current crisis will probably prove inflationary and therefore accelerate declines in the real value of cash accounts."
 
awgee said:
Buffett on the dollar & inflation.

"Today people who hold cash equivalents feel comfortable. They shouldn't. They have opted for a terrible long-term asset, one that pays virtually nothing and is certain to depreciate in value. Indeed, the policies that government will follow in its efforts to alleviate the current crisis will probably prove inflationary and therefore accelerate declines in the real value of cash accounts."
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? ? ? . . . so cash isn't king . . . ?

I'm confused. What are we supposed to do? If we put it in the market, we lose 1/2 our money.
 
Not sure if I have gone mad, but the more I look at things the more I'm starting to agree with PANDA to dump the US dollar. When you line up all the factors, it doesn't make sense for the dollar to be stronger than other currencies.

Our economy doesn't grow as fast as emerging markets and we have added tremendous risk to our financial system. I don't see how our garbage is better than their garbage. The amount of cash the government is printing and will continue to print will eventually bring in inflation.

2009 will be the year that will make us or break us. The reason for this is that we are going to see a wave of ARM loans come our way. If our banks...*cough* I mean our government can't handle the defaults which will eventually trigger credit swaps then we will collapse. No way around it. Our governement can't handle 63 TRILLION dollars worth of credit swaps. GAME OVER (oh and not to mention that social security and medicare is knocking on our door)

Oh wait...spoke to soon...they can handle it through printing cash and causing HYPERINFLATION where a loaf of bread will cost you 450 dollars.

So if our government can hold banks in tact and not cause a domino collapse, then we should be ok. (DOW to 7K) if no? (DOW to 2K)

As far as what to do? I'm pretty convinced some type of inflation will hit us pretty hard if not hyperinflation. So if you're not trading options back and forth and not care what we are doing as long as we are volitalte (like me) then I would stick money into hard assets. Meaning either stick with gold (just be careful, word on the street is that its being manipulated thus the reason it hasn't risen much during this economic crisis; Bear collapsed and gold shot to 1050. Since then we have experienced even worse economic conditions but gold to 800? huh? wtf?) or I would put my money into equities who have a lot of assets and try and stay away from ones that are wealthy in cash but low in assets. For example MSFT has lots of cash and cash tied into investments etc. in comparison with GE who has less cash but has a considerable amount of assets in property and manufacturing equipment.

Anyway...good luck. Take this with a grain of salt.
 
Short term, this should instill confidence in the markets, wouldn't you all agree?

I am always amazed at the kind of trust people put into Buffet. Forget E. F. Hutton (you probably already have).

In the past, I have read the Berkshire annual reports with much interest. He is indeed a legend. However, I look forward to the long-term outcome.

Will Warren Buffet join J.P. Morgan in the history books as staving off another U.S. crisis through his own confidence and action? Or will he become another Ben Beranke who eventually realizes that he, while powerful, is not powerful enough to prevent the inevitable?
 
WaitingToBuyByAndBy said:
Short term, this should instill confidence in the markets, wouldn't you all agree?

I am always amazed at the kind of trust people put into Buffet. Forget E. F. Hutton (you probably already have).

In the past, I have read the Berkshire annual reports with much interest. He is indeed a legend. However, I look forward to the long-term outcome.

Will Warren Buffet join J.P. Morgan in the history books as staving off another U.S. crisis through his own confidence and action? Or will he become another Ben Beranke who eventually realizes that he, while powerful, is not powerful enough to prevent the inevitable?
Click to expand...
They need to instill confidence in the American public. It's patriotic to do so. Same with the author of Random Walk on Wall Street.

http://www.careerjournal.com/article/SB122385741803727333.html
 
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