JBD

BUT...BUT...WARREN BUFFET SAID THE DOLLAR WAS TANKING!?!

The Sage of Omaha has been badmouthing and buying against the dollar all throughout George Bush's term. He does it to 1) make money and 2) blame the problems on Bush.

This is particularly rich:

Both Mr. Buffett and Mr. Munger agreed that home buyers that were misled on mortgages and are facing a crisis, such as foreclosure, deserve some help. Mr. Buffett said that mortgage papers should include a single sheet that says, in simple words and bold type, the terms of the loan and what could happen to house payments and interest rates if things change.

He also said that he had written a letter to Treasury Secretary Henry Paulson in which he suggested that people taking out a mortgage should be provided a one-page document that is headlined “WARNING” in red, and describes in-depth the maximum rate they could face in the future.

Anybody who has signed mortgage papers knows full well that all this language is already there. More disclosure forms won't keep people from buying more house than they can afford if the banks will give them the money.

And the banks gave money to people who could not afford it because Fannie Mae and Freddy Mac kept buying up the sub-prime loans. And why did that happen, class? Because the Democrats running these institutions kept changing the rules so that they could make money.

Add to that the push to end "redlining" high-risk applicants, and you end up with what we have now - organizations like Buffet's holding worthless paper backed by defaulted properties. And they need the Fed (meaning you and me, brother) to bail them out with legislation and a weak dollar.

Well, looks like he's going to get caught short himself now.

Watch for his position on the dollar to crumble just like what happened to all the other Democrat-inflated markets - mortgages, oil, ethanol and construction.

When you blow up a bubble to get rich, you get soaked when it bursts.

It's good to shake the losers out of the system every once in a while. Unfortunately, lots of decent hardworking people get caught in the backwash.

Hey Chief, better nail down those European sales before the rate of exchange turns over.

Posted by: JBD at 07:50 PM | No Comments | Add Comment
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