pharma

Warren Buffett Is Wrong on Fed Intervention in Bear Stearns

People sometime forgot that Mr. Buffett is a businessman. He runs and takes care of a very large investment company. His company is not much different from Goldman Saks and other investment banks. Therefore, the Fed is his business partner.

Consequently, the main driver behind every single statement he makes is well-being of his own company. So, do not be fooled by his appearances. He is not a monk. He is a very shrewed businessman.

Finally, big businessmen are all politicians! Do you trust them?

Monolines: The Spitzer Debate

The present financial crisis is lasing for too long. It is time for the Congress and Government to step in restoring trust in our financial system by:
- Bailing out the critical financial institutions and commercial banks [Lockheed's bailout worked just fine]. Looks like UK is just started this process.
- Financial markets must be much more transparent. Most of derivatives must be eliminated.
- Not critical financial institutions must be allowed to fail
- Leaders of financial institutions responsible for the present financial mess must be removed

The present Congress and Government response to the present situation reminds me a drug addict asking his doctor for help and, in return, getting a lone to buy more drugs.

Monolines: The Spitzer Debate

Any business and individual do make good, not so good, and bad decisions. This time monolines have made many poor decisions. This is life.

The main blame with the present financial crisis is lying with the Wall Street investment banks and Feds for allowing "derivatives" misrepresentation and outright fraud.

Finally, do we want our Congress and our Government to run insurance businesses? Just a reminder: the past Soviet and Chinese state-run economies did not do too well.