Friday, October 17, 2008
Everyone needs to read this op-ed by Warren Buffett. On CNBC's Power Lunch today, the talking heads were discussing "how right Buffett is". Interestingly, they were interrupted by the breaking news that three Lehman Brothers executives, including Richard Fuld and Erin Callan, had been subpoenaed in relation to Lehman's fall. The heads went wild, saying that "you can't prosecute someone for not knowing that the trouble was so bad" (although the heads admitted that someone in the banking world should have known better) and my favorite, that "the politicians and the regulators should be the ones investigated and cross-examined on national television." (I agree.) Which is so interesting. Last week or so, they were screaming for intervention from Washington and for the bailout package to be passed. Now, they want thier heads, instead of the CEOs. Who is right? Tough to say, but let's circle back to Warren. At least he is putting money into the markets and encouraging others to do so as well. I really do think he is quite brilliant and wish I was in a position to take advantage of some of these bargain stocks. No, the short term picture isn't pretty, but the market will always turn back around. Like so many others, I relish hearing from someone with 1) real business sense (a businessman vs. a politician) and 2) workable solutions instead of political soundbites.