Re: [Pen-l] Warren Buffett speaks to shareholders

[Laurent GUERBY <laurent@xxxxxxxxxx>]

On Sat, 2009-02-28 at 19:45 -0500, Louis Proyect wrote:
> âThis debilitating spiral has spurred our government to take massive 
> action. In poker terms, the Treasury and the Fed have gone âall in.â 
> Economic medicine that was previously meted out by the cupful has 
> recently been dispensed by the barrel. These once-unthinkable dosages 
> will almost certainly bring on unwelcome aftereffects. Their precise 
> nature is anyoneâs guess, though one likely consequence is an onslaught 
> of inflation.
> 
> âMoreover, major industries have become dependent on Federal assistance, 
> and they will be followed by cities and states bearing mind-boggling 
> requests. Weaning these entities from the public teat will be a 
> political challenge. They wonât leave willingly. Whatever the downsides 
> may be, strong and immediate action by government was essential last 
> year if the financial system was to avoid a total breakdown. Had that 
> occurred, the consequences for every area of our economy would have been 
> cataclysmic. Like it or not, the inhabitants of Wall Street, Main Street 
> and the various Side Streets of America were all in the same boat.â
> 
> full: http://www.berkshirehathaway.com/letters/2008ltr.pdf

Also discussed here:

http://angrybear.blogspot.com/2009/03/warren-buffets-annual-letter-to.html

It's amusing to see Buffet pricing of the derivatives he sold, see
my comments in the post above for an analysis.

Laurent

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