Those pecker heads, may have just saved us from another great depression.
Right now the world markets need, needed confidence more than anything else. With out confidence no amount of federal funds would, will save us.
Here is transcript of the Charlie Rose interview with Warren Buffet a few days ago. Well worth reading, no mater what side your on.
http://www.cnbc.com/id/26982338/page/2/
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Warren Buffett:
Yeah. When 40 billion of treasury bills are sold like they were last week, seven day treasury bills, at a yield of 1/20th of one percent, that means the whole country is basically at the point virtually, or a lot of the country is at the point of putting the money under the mattress. One twentieth of one percent away from where it's betting to put it under the mattress. You don't want 300 million Americans putting their money under the mattress. This economy doesn't work well without the lubrication of credit and trust. And that's been lost. It's a huge problem. What you have is you have the major institutions of the world all wanting to deleverage. They want to take down their assets and liabilities. What seemed so easy to borrow against a year ago now looks like rat poison to them. So they're trying to deleverage. There is only one institution in the world that can leverage up in a way that's all a countervailing force to that, and that's the United States Treasury."
"YD Co., China's biggest maker of rechargeable batteries, surged 24 percent to HK$15.90 in Hong Kong and subsidiary
BYD Electronic (International) Co. jumped 76 percent to HK$4.50. BYD has gained 89 percent this week after the company attracted a HK$1.8 billion ($232 million) investment from Buffett's MidAmerican Energy Holdings Co. BYD Electronic has more than doubled."
http://www.bloomberg.com/apps/news?pid=20601080&sid=atts6gZosUeU&refer=asia
Warren compares this Pearl harbor!
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Warren Buffett:
If you were at Lehman, the same thing happened. If you were at AIG, the shareholders are getting creamed on these things. And those shareholders are not just a bunch of big shots in Wall Street. Those are pension funds, and those are investors all over the country. I wouldn't worry too much about that. Justice won't be perfect on it. I mean, you may be very mad at some guy that walked away with a huge golden parachute, but that really isn't the important thing. I mean, if Pearl Harbor came along, you could have said the planning was wrong by the military ahead of time or maybe the battleships shouldn't have all been in the harbor and all that kind of thing.
Charlie Rose:
Right.
Warren Buffett:
It doesn't make any difference.
Charlie Rose:
It's Pearl Harbor. [unintelligible]
Warren Buffett:
I mean, the job is Pearl Harbor. And you better not spends weeks and weeks and weeks trying to assign blame or deciding on a complete plan for fighting the whole war, you know, and letting a committee decide where the battleships should go and all of that. You better spring into action with the best people you have.
Charlie Rose:
You have never seen anything like this in your life.
Warren Buffett:
No, I haven't.
Charlie Rose:
There are those who argue that we are headed for a recession, you know? And they look at depression as the great fear.
Warren Buffett:
Sure.
Charlie Rose:
Is that a possibility if this plan doesn't work?
Warren Buffett:
Yeah, it's a possibility, yeah. We have about 6.1 percent unemployment now. I mean, we've been in a recession, by any common sense definition, because if you look at the American public, they've got 20 billion -- 20 trillion, I should say, worth of residential homes. They've got 20 trillion worth of stocks, very roughly. Those are the two big assets of American families. They are both down dramatically for different families. But 95 percent of the people at least are worse off in terms of their residential wealth plus stock wealth from a year ago or two years ago. That is bleeding into the real economy. I mean, that's bleeding into auto sales and jewelry sales and furniture sales and all that. But that wave is just starting to hit. And if the paralysis we have in the credit markets, if every company continues to feel all we want to do is get our balance sheet down, sell assets, you know, it's just the start of what can happen. Unemployment's going to go up under any circumstances. I mean, it's the 6.1 is going to go higher. But whether it goes and quits at 7 or whether it quits as 10 or 11 or 12 depends on, among other things, the wisdom of Congress, and then the wisdom of, in terms of carrying out the plan that Congress authorizes.
Charlie Rose:
Would you say that this plan which you have argued very strongly the Senate ought to pass and the House ought to pass is simply the plan that we have, and I don't have a better idea. But it's essential for the confidence of the nation and the system?
Warren Buffett:
Yeah. I just worry about whether it's enough. But I think it is --
Charlie Rose:
Enough what?
Warren Buffett:
Every day that goes by, I mean, if you don't react to Pearl Harbor for a week or two weeks or three weeks, you're behind in the war that you otherwise would have fought. But it's very important that the determination of the US Congress to do what is is needed be made evident this week and by the actions of most of the members. I mean, you're not going to get total assent.
Charlie Rose:
What makes you confident that this plan will work? I mean --
Warren Buffett:
Well, I think you've got -- I don't think you can have a better secretary of the Treasury than Hank Paulson, you know. I mean, he is in there at the wrong time, probably shouldn’t have taken the job. He’s a friend of mine. But he knows markets, he knows corporations’ work, he knows money, and he’s got the interests of the country at heart. And so, you’ve got the right -- you’ve got a wonderful person with Sheila Bair, most of the viewers have never heard of Sheila Bair. Sheila Bair, in the last two weeks, has taken eight percent of the deposits in the United States and seamlessly moved those over to sound institutions which in turn have gotten more capital, ended up, it’s been a magnificent job. Eight percent of the deposits in the United States, 10s of millions of depositors. And nobody’s ever heard of her. She’ll never get a golden parachute or any severance pay or anything. She’s done a great job. We’ve got some great public servants. We have I think the right people in there to get the job done,"