H.J. Huneycutt

Bailout Should Be A Windfall For Taxpayers - Barron's

I'm getting really sick of Warren Buffett quotes being used to justify this. It seems like half the argument I encounter are "Warren Buffett knows more about economics than you!" Well, that's probably true, but I could probably find an economist that disagrees with the bailout and knows more about economics than Warren Buffett as well, so that's neither here nor there.

The fact of the matter is that Warren Buffett (like him or not --- and I think he's a good guy fwiw) will be the single biggest individual beneficiary of the bailout. So of course he likes it! He literally has billons of dollars at stake in this matter.

Warren Buffett might be smarter than me, but he's smarter than all the writers that keep citing him, too, because he's able to convince them that the entire world will end if they don't support a bailout that benefits him immensely.


The biggest misnomer here continues to be that falling home prices are the problem. As was pointed out already by a previous poster, that's simply not the case. The problem was that rapidly rising home prices in the early part of this decade that created a bubble that was bound to burst. This resulted from issues in the financial system. You can not remedy the problem by simply re-inflating the bubble which is what the bailout is designed to do.