Fabien Hug

Charlie Munger: 'We've Screwed Up'

I remember from my school days that economists showed a lot of contempt towards accountants, a lesser breed.

A Third Way in the Current Inflation / Deflation Debate (But It's Even Scarier)

I agree. It's a pleasure to read your articles.


On Apr 19 11:01 AM Maximus wrote:

> Great article Cam. You are far and away one of the best, most-insightful
> writers on SA. Thanks for your contribution.

Recession Hits Omaha: Moody's Downgrades Berkshire Hathaway

These rating agencies are always fighting the last war.

Berkshire Hathaway: Proof That the CDS Market Is Irrational

I don't know if this market became irrational but one thing is sure it allows some participants to manipulate it. Can you, average SA reader, buy a CDS? Can you take an opposite position to a CDS (akin to shorting it)? No and no. For instance, I you'd follow the opinion of TORO re BH, you can only buy their shares or debt (if it's traded, I don't know) and put a lot of capital in the play. The stakes are not in your favor. Consequently, your only option is to stay away because you simply don't have the tools to play the game. That's why I wouldn't buy shares of BH now, no matter what the fundamentals are.

Buffett and the Banks: Make the Most of a Bad Situation

Supporting zombi companies has effectively to do with wealth redistribution but not in the sense you think about.
As Bernanke said, it is to avoid systemic risk. Now if you want to really create a country of slaves you let C, BoA and AIG fail. Your small 401K will barf what's left of value and all the "safe" money you think you have in life insurance or annuities will vanish. The "master of the universe" will barely feel it because they'll be out before it happens.
Unless you are many times a millionaire, do not wish for a failure of these big maws. It will not serve you.

Preview from Europe: Slumdog Stock Market

I was a Swiss banker (was because now I am born again, I repent). When I was there I used to say; don't go to the States it's not good for you. Swiss don't have the right mentality for the States; to shy and consensual.
Regarding the banking crisis stop comparing US to Sweden. It will not work. You are not Sweden (just in case) and the global situation has nothing to do with Sweden in the 90s. It sounds like a limo driver in a LA canyon; that Mini is faster than me, let's buy a Mini!

Does GS Recapitalization Indicate It's Time to Invest?

Fundamentally it is good new. However, when BoA bought CountryWide for $19/shs, everybody was saying; "we have a nice put on the market".
Since I am long GS, I hope that WB is smarter than BoA.

Why You Should Short Companies Doing Share Buybacks

I like this article and saved it for future reference. It is always good policy to look behind the headlines and analyze why things happen.
Thanks