Warren Buffet, in a devastating interview, says the economy is in “shambles” in this year and for years to come — declaring we haven’t made much progress at all on solving the economic crisis. He says everything he sees suggests “we have had no bounce.” Those “green shoots”? He is “not seeing them.” Washington has “turned its sites to other things” but, he says, the economic problem has not been solved. He does credit the Fed Chairman for stabilizing the financial sector.
He has positive words for the financial regulatory overhaul (while conceding it’s a tough problem to come up with the right regime, given the history of boom-and-bust and “human nature” to lean toward “excesses”). He raises a concern about future inflation — and our decision to “monetize” the debt. But his harshest words are saved for cap-and-trade. On that front, he takes no prisoners and whacks Nancy Pelosi’s cap-and-trade plan as a “huge tax . . . no sense calling it anything else” and “fairly regressive.” “Very poor people are going to pay a lot more for electricity,” he says.
Perhaps Buffet, like many, many Americans is having second thoughts about the agenda of the candidate he supported for president. It seems that results matter — especially to investors.