Warren Buffett on economy

Warren Buffett talks about economic recovery during the "Fortune Most Powerful Women Conference."

“The United States economy is now out of the emergency room and appears to be on a slow path to recovery.”
–Warren Buffett, on Sept.15h in a New York Times op-ed. The Berkshire Hathaway (BRKA) CEO writes that while mistakes were made in the recovery effort, a “gusher of federal money” prevented a meltdown. He goes on to caution that “enormous dosages of monetary medicine continue to be administered and, before long, we will need to deal with their side effects.” If we don’t, the Oracle of Omaha warns us (and Congress): “Unchecked greenback emissions will certainly cause the purchasing power of currency to melt.”





Thoughts?

Obama: Jobs will lag until next year

So, we got the words out of Obama.....and for sure he'e being more optimist than we can think.

The new BULL market.

Recession Over. Follow The Cattle

Hi there,

It's me!
It's been a while since I last wrote here.

Oh well.....I've been here all the time though. Reading away...

My question now is: what the heck is goin on?

Over the past 3 months we've been told that we're gettin outta the woods. First it was Dennis Kneale (oh boy!), then came Larry Kudlow, all the boys at CNBC then we got Meredith Whitney upgrading companies such as Goldman Sachs (oh....and by the way...that upgrade came in on a day that the sp500 was basically at a huge potential turning point...no other news than her's came out and the market rallied). Of course if it wasn't for her, most probably some other "paid" pundit would have blown out some other good news to prop things up.

Ok, so at the beginning of March we were on the verge of economic meltdown, in all terms. Nouriel Roubini (the doomer of them all) was quite negative and couldn't see any recovery anytime in 2009. Actually his forecast was 2011/2012 to get out of the woods. And the recovery would have been an L shaped one (apparently now for some reason he changed his mind...not aV shaped as all are expecting but a Ushaped).
Everybody was asking around. Should I short the market. Should I stay out. Should I go look for another job. Are we going to get hyperinflation with all the money poured on the economies all over the world.
In other words we were all pretty much devastated.
Then what? Oh......on march 9th "someone" decided that it was time to invert things. Someone was told that there was no chance at all that the markets could fall lower.
Someone was told that the BAC's the Citigroups, the AIG's ......basically all the bailed out fellows had hit rock bottom and from then on....it was all good.
Someone was told that this was the chance of a LIFETIME.
Now.....let me see here.....
What really happened to justify this massive rally up to today mid september?
Could it have been GDP? Could it have been Unemployment? Could it have been Consumer credit? Or Residential and...Commercial real-estate?
Oh......the USD????? As I speak by the way...we're getting close to 76 (last time it was sept. 22nd '08).
Bernanke and his fellows are screaming to the world that it's all over now?
Investors can be confident once again that the storm is over and put their money at work?

Sometimes, I really think that people don't use their brains. They just do things.....because someone tells them to. And because it's easier or should I say it's a no-brainer demanding to follow the stream. Just like cattle. Ya.....men mostly react nothing more than like cattle.....Or that's what mainstream media wants them to be.
Thank goodness that Internet as of today.....still exsists so we can pass on our message....just like mine here now.....about what is going on.
Last night I saw an Italian tv show here in Canada (it's been a while since I last heard from Italy's Prime Minister Silvio Berlusconi). The only news that we've been receiving from Italy was the whores, prostitutes, private parties, the scandals, the divorces of the most powerful man in Italy.
But last nite I had a chance to hear him in a long interview with Bruno Vespa about the economic crisis and how the US got the whole world out of it.
He said...thanks to all worldwide government interventions (by literally injecting billions of dollars, euros, Yens, Renminbis...whatever) into the economies,over 400 major worldwide banks had been saved.
He went talking about unemployment (which admittedly is still on the rise), but getting "less worse", that the Italian GDP is now growing way better than fellow European Economies. Whatever.
As of today there are increasing public manifestations throughtout the main squares of Italy demonstrating against this unbelievable, or should I say disgusting manipulation that is taking place.
Consumers are not spending. AT ALL! Berlusconi said it too. But he said that consumers are not spending because they are still afraid of a new shock that could hit the markets. And therefore consumers are saving rather than spending. Even though the consumer has more money now since prices have gone down.
He said that banks are still a little tight on credit.....and that he's doing all he can to help the small/medium sized realities out there....that are in desperate need of cash to survive.
But the end line? ALL IS GOOD.

In other words......it really felt to me like listening to Obama, to Geithner, to Bernanke.....
Could it be that those G20's.....G8's.....bildenberg meetings.....they were all setups for one massive mission?
Oh well.....better not go there....but.....
it does seem to me.....call me stupid.......that maybe not today, or tomorrow, or next week, month,....but soon....we're gonna see some weird things happening.
this is not a same 'ol same 'ol warning post that i'm doin.
I just hope that.....we all spread the word...and really open our eyes....and figure out.....where will we be in 1,2,5 years from now. Wherever we might be located in this world...
Go to your local bookstore for example.
When the crisis hit the fan exactly one year ago....in not more than 2/3 months we had tons of books out there explaining what happened....real estate and therefore financial meltdowns and so on.
Last march the markets rebounded violently and ever since....it's been a ride to the sky.
Why is it that there's not ONE book out there that says.....how the US saved the world or how printing money saves economies.
Could it be that all economic books that are history and as we know ..history always repeats itself....one day will have to be rewritten?
The Adam Smiths, the John Mynard Keynes, the John Kenneth Galbraith (author of the great crash of 1929).....are their books goin to be forgotten? Will people laugh at their theories in the near future?
I personally don't think so.....and neither does Bernanke and his fellowship. They KNOW what they're doing. They can't tell the truth. If they do......oh boy....

So people....stay alert....I have to repeat here what I've stated in the past. DON'T LISTEN BLINDLY.
If the worst is really over.....that means I'm a nutcase.....and all I've studied was total BS.....and that I'd be better off flying a kite.......
Actually you know what?...I think I WILL go fly a kite today....since it's still beautiful out there..because the ... so called... dark clouds....are not here yet.

Ciao

Itmse

Friday August 21st 2009. A day to remember?

It's been a while since I last posted anything here.....too busy reading away what msm had to report and how the markets were accordingly reacting.

One word above all: DISGUST!

There is no empirical proof at all (and I mean NONE!) that the economy has turned around.
Bernie, what kind of economic data are you in possess of other than what we humans are fed with?
Are you out of your vulcan mind?

Not going to list out all the BEARISH (not to say DOOMISH) economic indicators that are available to all who know how to read with common sense.

One thing though that needs to be cited: the sp500 today blew through the 38,2% fibonacci retracement from the all time highs. Therefore, technical analysis says that there is quite a chance that this rally isn't over yet, considering also the other leading indicators.

Most probably there is a 3% left of bears.......and the market seems to be a screaming buy now.
Therefore, if the marktet does what it has over the past semester, it's time for the opposite........SELL SELL SELL.

It's Friday August 21, 2009.......time will tell if my "prediction" pans out.

Cheerz

Itsme

HERE WE GO.......????

So, the more I read and hear what MSM is screaming now, the more I am scared of what we might be getting prepared for.
I'm not a bear. I'm not a doomer. Never been one. I've always been for prosperity and for a life full of joy and tranquillity.
I'm not an economist. I'm not a philospher. I'm not a broker.

What am I then?
A true "reader" of information. Real information. Data that we are handed over day after day and that is unfortunately and miserably misinterpreted and/or manipulated to present things different than what they really are.

I've been waiting for over a year now, for this time. A time to finally be happy. Go out and joyfully celebrate with my wife. Eat caviar and drink Dom Perignon....to celebrate....the end of the recession! Is this the time to do it?
I am asking you. I am asking the Kudlows, the Kneales, the Cramers, the Whitneys, and now the Roubinis too! All I am expecting now is to see Peter Schiff on cnbc drinking with Kneale too!

Why not do it then?
I just can't. I feel like I'm the only one left that is seeing sour weeds out there.
Mention some? No prob.

1. CIT bankrupcy - (as I am writing this it just came out that this bankrupcy will not effect financial markets......hmmmm...really?)

2. UNEMPLOYMET - slowing down. really???? wow....green shoots. We are still at an average of 500,000 layoffs a week in the U.S. Why don't they say that now companies are laying off less becuase they have already cut their workforce to the minimum to go ahead? Whatever...

3. CONSUMER SPENDING/SENTIMENT - Now, the more u layoff, the more people out there already on welfare, the less they spend. Period! Who and where are the people that are really spending more?

4. Q2 EARNINGS - Better than expected.....I can clearly remember that even before Q1 were released, MSM was warning that Q2 would have been really tough in these market conditions. Q1 is always pretty much easy to "inflate"......now it seems that even Q2 for some companies it might be so. Some financials (not to say all of the big guys) reported Q1 results pretty amazing. Now we are seeing the same thing for Q2. That's too easy since we've seen the biggest bailout in US history and use of these funds for who knows what purposes...
Q2 earnings in other sectors have been completely misread. One for all INTEL.
Right now while I am writing, GOOG is coming out and CNBC has wrongly reported their numbers too. Do they have any clue what they are doing? Suggestion: before reporting, read, re-read, and re-read again. Then think...and then maybe ask for some assistance from someone who knows how to read quarterly reports before blowing information to millions of people watching you.

5. GDP - not much to say. We all know. But one thing we might not all be aware of is....how to read the gross domestic product to the public.

6. COMMERCIAL REAL ESTATE - This bubble is starting to bust already. But who cares. This can't change the economy. No? Disgusted

7. CHINA - This may not seem that important to the U.S. economy, as many people might think. Are we nuts???? If China's machine doesn't start producing again soon.....or let's say "yesterday"...we shall see some big things happening soon. Obama's motto has been buy America (throughout his whole Presidential campaign). And it'd be a great thing to do I say, but impossible. Why? Because if China decides (they already started) to reduce purchasing US debt, who is going to finance the U.S.? The Russians? Europe? You gotta be kidding me!!!
So now, the Gov is feeling like forced to start buying Chinese consumer goods in order to have them still buy US debt. Nice......but who needs Chinese goods now? Take a look at freight forwarding companies around the globe doing business with China. A pretty bad sight......

8. FEDERAL RESERVE - A private company that is running the U.S. Not auditable. Untouchable. What else to add? Ask Alan Grayson....he surely has something to add!!!

9. Last but not least, GS........what are they doing? What's behind their curtain? What's their next step? When are they planning their next big thing? Ask Matt Taibbi...he might have a clue. It's not only Cap&Trade. For sure!

10. I'm leaving this empty for SPITE!

SO, ALL SAID, NOW IT'S TIME TO CELEBRATE?

OH BOY......

Itsme

DON'T LISTEN BLINDLY CRISIS IS NOT OVER YET! or is it!! PART 3a
www.youtube.com/watch?v=fzVfQNrhNsk

July 10th .... is CNBC drinking too much "green tea"?

Two months ago I posted a video on youtube with thoughts that the crisis was far from over. At that point the DOW was in the 8500 area. Remember at that time, all the media was optimistic about the bounce we've seen from the 6500's and the biggest comeback ever seen in the markets since the Great Depression.
Now, I am not an economist, a financial guru whatsoever.....I'm just a "realist" like other claim thereselves to be out there....but they're looking at the wrong side of the coin!
Mathematics is not an opinion....it's pure fact and "maybe" subject to manipulation (can't imagine if the cookbooks hadn't been touched where we'd be now!!!).
I've been reading away.......information....information, our most precious resource available on the Planet.
Doesn't anybody else here smell that the roast in the oven is getting burnt? Way too many ridiculous "green shoots" being pumped into the media.
What do they think? That we are total idiots and we will go spend our last worthless dimes left now to show that we're all optimistic about the near future? That scares me even more!!!!
Anyhow, no need to layout my reasons here that the worst is not over. We are getting numerous out there about what is about to strike the World Economy once again. And it's not going to be milder than the previous one.....u can't hide an ugly face behind tons of makeup when it's about to rain hard and u don't have any umbrella!
Here's my last video (2 months after my 1st one)......

http://www.youtube.com/watch?v=oLrz4uEUPWI


Cheerz.

Itsme