nmelendez

Buffett's Latest NYT Op-Ed: The Greenback Effect

On Aug 19 11:40 AM John Lounsbury wrote:

Louns,

You are both right. Your forecast is 10 to 12 years down the road. Ace's prediction are for the next 10 years. As the market deflates and credit bust really takes off you will see prices collapse as demand for dollars, not credit, is the enabling factor.
So for now deflation with a future prediction for inflation. Now here's the tricky part to make the buck, timing!!!!!


> Market Ace - - -
>
> You wrote:
>
> "I think the inflationist are missing a very important point They
> mistake those green pieces of paper that Bernanke keeps printing
> and dumping on the banks so they can buy US Treasuries as money and
> this "excess" money will cause inflation."
>
> I feel you have argued well, but missed one point. There is inflation
> and the bubble is now in Treasuries. My view is that when this bubble
> breaks the next inflation bubble will be in commodities (basically
> the dollar and other currencies undergoing devaluation). While inflation
> in Treasuries can occur without flowing through to what people buy
> (in fact Treasuries can bubble when there is deflation elsewhere).
> With the commodity bubble, rising costs will flow through to consumer
> prices and broader inflation will occur.

Financial Weapons of Mass Destruction Aimed at Omaha

my bets on the "Guru of Omaha", one savvy and patient investor. Think Tortoise.

Buffett Likes to Be Early; Don't Rush to Follow

This article would be great, except it precludes the obvious. Buffett is making money like crazy. You don't think he has spreads on his holdings? Pleaaaaaase. Duh.