I have serious issues with Warren Buffett but when he sold The Washington Post to Jeff Bezos I sensed that it was probably a good move for Buffett. Originally Buffett bought The Post because it was the chosen news source within the power circles of Washington DC. In addition to this important factor Washpo had a strong readership based in a wealthy city. Good for ad revenue. There was deep value in the publication. But, to Buffett’s credit he probably sensed the winds shifting (even if he did think Hillary was going to win) and sold The Post when he could before the real serious decline in value became too obvious and too expensive even for someone who wanted to revamp the newspaper for delivery on Kindle devices.
One of the common counters to the call for sound money (a real gold standard) is the quip; “What’s the real golden rule? Whoever has the gold makes the rules.” And then some silly half baked mix of Keynesianism and Marxism usually follows along with whatever the commentor picked up in their Econ 102 course years ago.
But the truth is gold rewards thrift (which many of the ruling economists despise, they want you to spend at all costs) and hard work.
Savers, you can forget about opting out of the stock market. If you want any kind of return you will get in the market and you will like it. So what if artificially repressed rates are crushing you? So what? Do you think you matter? Most of you savers will be dead soon anyway. You and your bank CDs. How quaint. Now pony up and buy some more stock grandma. Oh I’m sorry? You think there’s too much risk in the market?
“Now just do everything that is written down here and you are in the club. You want to be in the club don’t you Barack?”
In a previous post we noted that if the Koch Brothers really wanted to get even richer they’d be calling for larger government not a smaller one. Big government, absolutely, indisputably works for the already rich and connected. A small government which allows room for entrepreneurs and innovation on the other hand works for the middle class and those who are willing to work hard.
Obama knows in the end who butters his bread. Obama loves him some corporations and he gave a nod to a few last night. But in the State of the Union Address the president failed to mention many of the other companies which have shown him favor and which his administration has smiled upon.
And he has.
Obama has a good game going, which mostly fools his progressive base. While railing against “corporate greed” he happily cozies up with the corporate greedy. It’s where the money is after all.
As usual, he only gives you partial information. This enables him to put a positive spin on what is happening.
Did the father of today’s crony capitalist economic policies invent some of today’s most successful personal investment strategies?
Easy for you to say Mr. CEO.
OK all you billionaires out there who worry about paying a lower percentage of your income in taxes than your secretary, here’s your chance to pony up—for the country.
The House of Representatives just passed the Buffett Rule Act with a voice vote. Now Warren Buffett, Bill Gates, and Ted Turner (is he still a billionaire?) can give all they want to Uncle Sam just by checking a box and writing in a number.
The “Buffett Rule” would raise income taxes on those who earn over $1 million per year to 30%.
The president says (publicly) that it’s not about “fairness” or income redistribution, it is about closing the deficit. He admits that it won’t solve the problem but that the rule would be “a move in the right direction.”
Yes, that makes sense. It’s not like we have a bloated and antiquated New Dealish, centrally planned, government behemoth that gobbles up tax dollars and produces little in return or anything.
Legends don’t come much bigger than Warren Buffett. The man in Omaha, player of the ukulele, value investor, advocate of taxing the rich, friend of Barrack Obama, King of Crony Capitalism.
Wait, what was that last bit?
Yes, sadly Warren Buffett is not the advocate for capitalism and economic fair play that many of us thought he was. He is right up there, and perhaps surpasses Jeffery Imelt of General Electric, for the title of King of Crony Capitalism.