I am a trend trader, as mentioned hundreds of times, but I listen when Mr. Warren Buffett speaks! Below are the most logical statements I have heard in a long time. He makes much more sense than the predictions we are bombarded with by the talking head media and so-called “experts”. The so-called experts barely take home a six figure salary (if half of that), many stuck in the rat race but are qualified by major networks and media outlets to educate the masses (or sheep as I like to call them).
I’ll pass on the information from all the talking-heads and listen very attentively when the second richest man on the planet and greatest investor of all-time speaks. I am also bullish on the United States over the long term as nations and markets work in cycles. I am not a believer in doomsday predictions, authors, books or religions. Like Warren Buffett and William O’Neil, I am long the United States for the rest of my life until something shows me the trend has ended. The past several years (dating back to 2000) are a small pimple on the ass of this great country.
“I am a huge bull on the American economy,” said Mr. Buffett, in an exclusive interview with the National Post.
Financial markets around the world have been heaving amid fears that banks will have restrain lending and damage other areas of the economy in order to shore up their capital and rebuild their balance sheets.
But Mr. Buffett says the United States has survived such turmoil before.
“We’ll always get through,” he said. “I’m a bull on the United States. Just think about how silly it would have been to be anything other than a bull on the United States since 1790. It is not a smart thing to sell the United States short over the years — or Canada for that matter. The world does get better. People get more productive. More human capacity is unleashed over time.”
“He said the banks will be able to work out their troubles without government assistance but may not be the “best investments.”
“They’re going to be around,” he said. “The ones that have taken the big write-offs, they’re not going out of business but they’re selling a lot of new shares in the process so they’re diluting future earnings. They’re paying a price.
“I think most of the very big ones and I won’t name names, I think five or 10 years from now people will have made money on them but I think they’ll have made money on other things too. I don’t think necessarily they’re the best investments, but they have not been permanently crippled.”
He sees no need for any government bailouts in the financial sector, similar, to the government rescue of U.S. banks during the savings and loans crisis in the early 1980s. U.S. banks have enough money to handle the extra cost.
“They can handle it and they’re paying a price for it,” he said. “Somebody has to bear those losses. Is it better that the XYZ bank bears it or is it better to socialize it for the American public. I’d rather have the XYZ bank pay for it.”
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