Economy In Shambles Buffett Still Optimistic

by Staff - March 2nd, 2009 - Moneynews

Warren Buffett says the economic turmoil that contributed to a 62 percent profit drop last year at the holding company he controls is certain to continue in 2009, but the revered investor remains optimistic.

Buffett released his annual letter to Berkshire Hathaway Inc. shareholders Saturday morning, and detailed the worst of his 44 years leading the Omaha-based company.

Does that optimism explain why he backed Barack Obama for President or is it vice versa? The article documents more stupid decisions by Buffett this year than he has made in the last decade. Both Warren Buffett and Bill Gates are convinced that socialism is the wave of the future. Both have abandoned free enterprise for the crony capitalism of Robert Rubin and the other left wing economic evangelists. To date this crony capitalism has a poor track record.

The big manipulative Wall Street investment bankers which Rubin helped create have done nothing to date except drive the Tech boom of the 90s into a huge bust and drive the home boom of earlier this decade into a huge bust. To date their track record is one of disaster.

Why has Buffett suddenly changed from the conservative investor of his youth, banking on picking winning companies, into the radical investor of today, picking hypothetically winning "strategies"? Anyone with a brain had to see that derivatives were not predictable. However Buffett, just like all the other people who think of themselves as geniuses, could not resist proving that he could figure out derivatives and make money on them. He hasn't.

Buffett picked Obama even as he picked a ton of investment losers this last year. I think it will be ironic if having picked Obama, he can no longer pick good companies and make money on them because Obama taxes productive companies to oblivion. How can Buffett back someone for President who plans to end the great economic system that he prospered under? How can he still remain optimistic? Or is he conning us? did he realize that Obama was going to destroy free enterprise? Is it his desire to assure that no one else can ever come along and prosper as he did? Is backing Obama the way Bill Gates and Warren Buffett assure they go down in history as the last great entrepreneurs?

I think anyone who trusts either of these two people is being conned based on old news. They are not great entrepreneurs any longer. They are socialists. I wonder who these two will support in 2010?

If consevatives were anything like liberals, the bumber sticker for 2010 is already written:

Obama Lied - My Job Died.