This morning, Warren Buffett says he is now buying American equities. Once, his personal portfolio was totally invested in U.S. government bonds. Soon, he notes in his New York Times op-ed, he will own nothing but the shirt on his back and American equities. His argument is simple: “Be fearful when others are greedy, and be greedy when others are fearful.” Good American companies will recover and produce “new profit records 5, 10 and 20 years from now.”
They don’t call Buffett the Oracle of Omaha for nothing, and he is undoubtedly correct. Over the long term, stock of American companies will be the best performing assets in the world. And it’s not hard to see why. Western Europe, plagued by ideas of state-led capitalism, will be stagnant. The oligarchs will continue to strangle the Russian economy, and China will be struggling to come to grips with the “contradictions” of “socialism with Chinese characteristics.” People will soon forgot names of wealth-accumulation wizards like George Soros and Jim Rogers. And no one will be buying gold.
Nobody makes money betting against Buffett. Yet there is one factor that he does not mention in today’s New York Times piece. Great-power autocracies and rogue states always try to take advantage of the uncertainty and turmoil that inevitably accompany sharp economic downturns in the world’s democracies. In the past, they were never able to deliver knock-out blows. Now, however, some of them are armed with the ultimate weapons in history and others are on the verge of acquiring them. Their possession of dangerous arsenals destabilizes us all and even changes the structure of the international system.
So, we are at a precarious moment. The global financial architecture is disintegrating and the post-Cold War geopolitical structure is decaying. We are passing from a sweet spot in history-the best possible world-to something else. We may not yet be the “greatest generation,” but we may end up as the generation that faces history’s greatest challenges.
When that happens, Americans must once again find the will to lead. And when we do, Buffett will be proved right.
“He has not explained in a compelling way why Americans who followed the rules need to sacrifice more to help those who flouted the rules.”
would that the house & sentate republicans – not to mention mr steele! – articulate and emphasize this key theme as crisply and clearly as modo does….
You said it very well! Eric Holder should learn a lesson to choose his words more carefully rather than collectively calling all Americans cowards.
I’d like to hear Eric Holder and/or Barack Obama respond to the racism accusations thrown out regarding protests against the NY Post cartoon (police killing chimp and wondering who would write the next stimulus bill) and House Majority Whip James Clyburn of South Carolina (D) calling four governors including his own are racist because they may not accept some of the money from the stimulus.
Now again, why are Americans cowards? These African-American bullies are willing to call anyone that disagrees with them a racist at the drop of a hat.
I’m sure as hell not.
>>he demonstrated in the campaign that he has a rare gift for inspiring the country with new belief in itself<<
I’m sorry, where and how exactly did he do this? As far as I can tell, he’s doing now pretty much the same thing he did on the campaign trail – America is awful, the world has a right to hate us, poor people in America get the shaft from rich people who cause all of the country’s problems, we need to heal our soul as a nation and our souls as individuals, etc., etc., etc. The fact that so many people bought this as somehow “inspiring” on the campaign trail is the amazing thing, not that he’s still doing it now. Our President likes to make speeches but hates to make decisions. He’s great at railing against things but awful at building up things. This was obvious to anyone really paying attention, but easy to miss for someone who was blindly hoping for a saviour.
Anyone else notice the tendency to assign mendacious motives to the past administration, as well as the Republicans in general, while claiming the moral high ground? Obama promises big and delivers little. He promised transparency in writing and passing legislation but failed to deliver. He promised a lobbiest free administration, again failure. He promised a detailed bail-out bill, enter Geithner. But, according to him, his failures are honest mistakes due to circumstances and must be accomodated, while the mistakes of the past administration are corruptions. I see a pattern. I am pure and good. My mistakes are just errors of circumstances. My opponets mistakes are evidence of mendacity and corruption.
His newest promise to halve the national debt by 2012 is another biggy. He’ll do this by cutting defense spending via Iraq and Afghanistan, by letting the Bush tax cuts expire and by cutting unnecessary spending? Really? REALLY? What I really want to know is will the tax increase (from 35% to 39% on those earning over $250,000) increase revenue? Someone please explain.
Let’s pray that George Soro’s is wrong because Obama is in way over his head.
Americans who had nothing to fear but fear itself now have everything to fear including the fearmongers themselves.
When cowards mock the patriot’s fate….
I think that the Hon. Holder might consider the similarities in victimhood & cowardice.
Ask not what your cowardly leaders can do for you; ask what you can do to your cowardly leaders: Vote ‘em out!
This exposes the fundamental flaw of political liberalism. For a philosophy that believes in the perfectibility of the human condition, liberals haven’t thought through what they’d actually do once they got there, or even part of the way there.
In other words, liberals are the perpetual “glass half empty” crowd. Unless there’s a grievance that needs addressing, whether it be racial discrimination, sexual discrimination, homophobia or xenophobia, liberals haven’t a clue what to do. Forgot about addressing the issues of the successful. Liberals don’t even know how to talk to the vast majority of Americans that, while not super rich, are simply not in trouble, yet still want to improve their own lives and the lives of their children.
Of course, we’re in extraordinary times. But PBO seems to be more focused on giving our sick economy painkillers, all the while telling us how sick we are and unlikely we are to get better, instead of trying to effect the fundamental cure.
Carter II indeed.
Re “debt reduction:” As soon as Obama/Reid/Pelosi/Dodd/Rangel/Frank deem it politically doable — possibly right after the 2010 elections — there will be tax increases. My guess is that the top rate will be 55%. There will be blood — and it will be yours and mine.
I’m wth JDP. Obama has never said anything positive about our country. And his continual bashing of the Bush administration makes me so angry. What’s really sad is that smart people like the author of this piece fell for it.
Hey, peace loving activists “war is not the answer bumper stickers apologists” calling Bush a war criminal. Can we accuse Obama of war crime on the killing 16 civilians in Pakistan? Why the media are silent these days, huh? If Obama are committing 17,000 troops more how many innocent people of afghanistan and pakistan will be slaughtered and paying off their families?
It is time to close the shop in afghanistan.
I wonder to what extent Dowd censored herself before the election for the greater good of the Party.
@Kate
To be fair, I’m not sure Jen “fell for it” but simply acknowledged that certain aspects of his rhetoric could plausibly inspire some degree of … umm … hope among even somewhat reasonable people who don’t follow politics or issues very closely and were displeased with the direction of the country.
Far more disturbing is that you have polls as of late this week where 80% of the people view Barry as a “stong leader”. Yes the overall approval rating is “only” 67%, that is the highest he’s recived in recent days and even in this poll only 31% of the people think the porculus will actually help the economy. Still, the 80% in the face of a genuinely pathetic lack of leadership pis indicative of a desperate need by a huge number of people to believe in something and it will probably take a great deal of protracted and disastrous bungling for people to regain a sense of reality.
I just thought Holder was providing his version of a stimulus plan for us “cowards.”
Why do we continue to define race as black v. white?
Is there an Asian-American history month? Hispanic-American history month?
….you get my point.
The more things change, the more they stay the same.
Business – the car industry is a loser, sucking up billions of dollars. They did not play by the rules of the game, and they want to be rewarded. Obama provides from our money
Homes – ACORN and Fannie Mae and Freddie Mac are losers, sucking up billions of dollars. They encouraged and allowed people to buy homes they couldn’t pay for. They did not play by the rules of the game, and they want to be rewarded from the money of the homeowners who did. Obama shall provide
Durban – is a loser. Isolating Israel as racist in the face of crimes against the globe committed by oppressive regimes of hatred. The representatives of Durban want to continue with this agenda, flouting the rules of the international game, and they want to be rewarded. Again, The One shall provide US delegates.
This is just the first month, and we see a candidate that took no position on any issue, did not show any value system to guide his decision, enacting this worldview in reality. Yes, we really need actual hope now.
Obama might be Mr. Popular right now, but he has no place to go but down from here on out. He’s hit his pinnacle, so get ready for the downward slide, because it’s inevitable.
1). Yes, Obama did run out of hopeychangey material early on the campaign trail. That’s why he had to swap cliches back and forth with Deval Patrick. Something else the media refused to acknowledge–his plagiarism, lack of creativity and desperation.
2). #5: According to Obama, “My opponets mistakes are evidence of mendacity and corruption.” You forgot stupidity. George Bush and Dick Cheney aren’t only mendacious and corrupt. They’re also stupid. When not diabolically clever. Or something.
“the result seems to be a surly and depressive presidency. Perhaps we were not the change we were waiting for after all.”
Good grief, first Dowd, now Rubin. The nation is in some sort of wierd malaise. Soon, Obomber can be expected to summon the Socialist party graybeards to Camp David and ask, a la Jimmuh Carter, “Anybody have any ideas?”
Memo to next person running for the Presidency:
Don’t promise anything you don’t know how to put right, or deliver on.
Or, if you do, you risk the danger of turning the people who elected you into “suckers”.
And sooner or later the “suckers” will have their revenge on you.
That is, in a democracy.
It was alwasy the same message–this country needs “fundamental change.”
And now Obama plans to provide it, precisely by donating to the “needy” and “victimized” the spoils taken from the undeserving well-to-do (actually working poor and lower middle class). What’s new? To talk about the non-needy and non-victimized as if they were “following the rules” is nonsense, since in Obama’s worldview, the “rules” of this society are all wrong. (Fundamental change, remember?)
I think a lot of people mistook Obama’s statements of sincere belief for campaign hyperbole. And of course, there were very few people asking, “What kind of fundatmental change?” and “Do I really want things to change fundamentally, or just a tad? Do I think the whole system is wrong, or just a little off right now?”
I just need to qualify the phrase, “sincere belief” up above. I do think Obama sincerely believes these things. I don’t think he believes them out of careful study and thought, but in great part because they are strongly suggested to him by pure self-interest. It’s much easier to use race and be a fundamental change agent and gain power by means of an unanswerable set of slogans than to consider and deal constructively with the problems that beset lots of Americans, including black Americans.
It was alwasy the same message–this country needs “fundamental change.”
And now Obama plans to provide it, precisely by donating to the “needy” and “victimized” the spoils taken from the undeserving well-to-do (actually working poor and lower middle class). What’s new? To talk about the non-needy and non-victimized as if they were “following the rules” is nonsense, since in Obama’s worldview, the “rules” of this society are all wrong. (Fundamental change, remember?)
I think a lot of people mistook Obama’s statements of sincere belief for campaign hyperbole. And of course, there were very few people asking, “What kind of fundatmental change?” and “Do I really want things to change fundamentally, or just a tad? Do I think the whole system is wrong, or just a little off right now?”
I just need to qualify the phrase, “sincere belief” up above. I do think Obama sincerely believes these things. I don’t think he believes them out of careful study and thought, but in great part because they are strongly suggested to him by pure self-interest. It’s much easier to use race and be a fundamental change agent and gain power by means of an unanswerable set of slogans than to consider and deal constructively with the problems that beset lots of Americans, including black Americans.
Jennifer, your article focuses too much on Obama’s tone, and not enough on his utter lack of substance. The shape our economy is in, I wouldn’t mind and rather think it would be a good idea, if an American president were to give us a long, rational, and very sobering explanation of where things stand. In a free economy, government would step back and let the various high rolling banks and auto makers fail, so that these assets could go into the hands of prudent, competent managers. It would be a painful process, but a relatively brief one. That, I think, is the point to be made — not so much Obama’s inability to inspire, etc. In fact, if the point of being inspiring is just to rally support for the Multigenerational Economic Ruin bill, then I, for one, am delighted that Obama is uninspiring.
Wow, Dowd is pis**d! Could it be she didn’t get the ride on AF1??
My friend told me when Obama won. “Don’t worry bud, they can’t govern. In a very few months we will all be witness to their total incompetence.”
He may have been right.
RW
Jennifer, this is all out of Alinsky’s play book. First you tear them down, then you build them up. He is both the good and the bad cop all in one. We will be treated to this two faced act for years. And, very sad to say, it will work.
I think you and others need to “smell the coffee” on Obama. He does not play by the same rules. Gravity does not apply to him. Remember, FDR was reelected even as the economy tanked. It will be the same with The One. You, me and everyone need to start figuring out how to deal with Him (capital H is intentional) instead of prognosticating his demise, which has been the tenor of much of your comments.
Maureen, {GIVE her major credit for this, for many Left of the aisle refuse to acknowledge as much} senses and perceives MAJOR weakness and wimpiness in Obama.
Recall when she noted his “big ears,” and at a private gathering, he came up to her and asked her not to mention ‘em, because as a boy he was taunted because of ‘em, and he’s sensitive about it.
Dowd recalled thinking afterwards, “and he wants to be leader of the Free World;” she immediately thought “he’s a wimp.”
Everything he’s done since being sworn in, has PROVEN the suspicions she’s harboured about him for quite some time.
Dowd knows there’s blood in the water; the Indians already know Obama is a wimp, the Iranians now know without any doubt whatsoever, they’re going to go nuke, and the only people who still hold out any hope at all for this fraud, ——————————- are the American people, who are supposed to be the most savvy of the lot.
What a tremendous irony. The most media conscious people on the planet lacked the savvy to see through a wimp and a fraud.
What’s next from this lost and morbid administration?
WIN buttons?
Or maybe he’ll host a “million man march” against the impact of inflation; or maybe ask Reverend Wright to regale the nation by delineating our supposed national “sins.”
And I’m sick to death too of Conservatives who are pulling their punches with this twit.
The twit in chief doesn’t know economics.
The twit in chief doesn’t know history, nor theology.
The twit in chief doesn’t know management skills.
The only thing the twit in chief does seem to be able to discuss at length is 14th Amendment Marxism, black liberation theology and how to affect a zen like passivity in the midst of a political storm.
A dubious skill set at best.
I mean we didn’t do much better nominating McCain in lieu of a Giuliani, but still, ———————————– we ELECTED a devotee of black liberation theology.
What the hell did we expect.
EVEN THE LEFT is now scared to death of what he’s doing, and what he’s likely to do.
The left is only scared that he’s too feeble or unfocused to bring the revolution off.
Of course he’s not optimistic. He’s (still) a “community organizer”. His only experience in “professional” life is to tear down what some-one else has built up. He will always blame “the man” (in this case George W. Bush) for any problems. Face it, a shill was elected, and will tap-dance (to the tune dictated by Nancy and Harry) until he is not re-elected (if we are lucky enough to have found a “community organizer” who will obey the law).