Buffett: worst of crunch is over

[MAllie]

Not exactly domain news, but this article may be relevant all the same, seeing as Buffett is supposed to have such a grasp on what's going on in investing. It was in the UK Sunday Times last weekend. Here's the electronic version of it:

http://business.timesonline.co.uk/tol/business/economics/article3867799.ece

 

[DomainName]

The Oracle of Omaha at his best...pure genius!

 

[jasdon11]

And the boss of Northern Rock told everyone to invest in them the week before it hit the fan.

 

[Poker]

Buffett is definitely one of the greatest long term investors of our time, but I would'nt count on him for market timing

 

[Rubber Duck]

The Credit Crunch will be over when all the lending Institutions have recapitalised.

That process is only just beginning and whilst the banks are beginning to admit how big the holes in their balance sheets are, it is still not clear who is going to cough up all the dough.

Are they expecting the people they have hung out to dry to come up with the cash? Do they have a way of intercepting all the the electronic transfer from the Fed's stimulus package? Or are they simply going to lend the money to one another?

The bottom line is that most of the News you are being fed is crap. The economy is on a downward spiral and the Fed and the Treasury can do little but fiddle the figures and try to talk it up.

When Paulson says,"The long-term prospects of the U.S. economy are very strong, and compare favorably with those of other economies of the world", what he actually mean is that the per Capita GDP of the US won't fall below that of China on his watch. Mind you he isn't actually going to be there after this year is he?

 

[jasdon11]

Home repossessions up 17% in first quarter - http://news.bbc.co.uk/1/hi/business/7391772.stm

Worst over..? What do you think?

 

[TheLegendaryJP]

Ya it'll all be wrapped up my summers end lol

Even if there was reason for a turn around the issue ultimately was greed. All round, greedy leaving beyond their means buyers, greedy mortgage brokers, greedy investors, greddy greedy greedy, It was a house of cards. When you stop playing by the rules this stuff happens. Numbers, ratios etc all ignored. They are called SUB prime for a reason.

 

[Theo]

The economy will get worse this weekend, Jenna Bush is getting married.

 

[Rubber Duck]

The thing that is worrying me are the stats. They just don't make sense.

Total employment last month decreased by only 20,000. But part-time employment increased 300K as part of that total. My question is did part-time employment really increase by that amount, and if so why? Isn't it just the case that because part time employment only has to a single day at any point in the month, the part-tme stats are easier to fudge. Either way you look at it over a quarter of million people got kicked out of full-time employment and the rates for part-timers are generally going to be a lot lower.

The other thing is the retail stats. They are holding up reasonably well, but when you look at the company profits stats, we are getting a completely different story. Daimler, BMW, Toyota and Philiphs have noted big drops in sales in the US. Imports are way down even from China. Canada is going into recession because sales from the US are drying up. Are we really expected to believe this is all being off-set by investments in GM's gas guzzlers? True some US Multi-Nationals notably Cisco have big increases in profits, but these are mainly being derived from China and India, which are stated to be "on fire".

Oh, yeah. And when we look at the latest labour stats the strongest employment sector is supposed to be Financials? Give me a break!

I am afraid what the US needs right now is external independent auditing.

 

[HomerJ]

my money is on Mr Rogers (watch the video)

 

[zerolu]

The economy will get worse this weekend, Jenna Bush is getting married.

lol yes watch the market on monday it will be down 400 points lol

 

[Poker]

lol yes watch the market on monday it will be down 400 points lol

Me thinks your crystal ball be broken zerolu (DOW + 130)...mine got to the point where I could barely see through all the duct tape I used to keep it in one piece. A good jolt might be just what it needs I thought (about 20 times) as I threw it across the room.