No bailout needed, says billionaire investor Warren Buffett.
The investing legend said this week that he thinks the U.S. economy can fix itself soon enough, and without a federal stimulus plan.
"I am a huge bull on the American economy," Buffett told Ontario daily The National Post. A recession is looming, but Buffett says the United States has overcome worse and come out ahead.
Now, his view is slightly less bullish than mine. What is most interesting is Buffet's belief that little needs to be done to fix things. He continues...
In any case, a government-led bailout simply won’t be necessary, Buffett said. The banks took the risks, and they should take the losses, not American taxpayers, he said.Now, the reason this is all interesting is that Buffet is a supporter of Hillary Clinton's. I would like to know why because what Buffet suggests we do is the exact opposite of what Hillary Clinton wants. Hillary Clinton is a proponent of massive bailouts and stimulation. Hillary Clinton wants to use this mortgage crisis to set up all sorts of new rules and regulations.
"Somebody has to bear those losses. Is it better that the XYZ bank bears it or is it better to socialize it for the American public?” Buffett asked.
"I'd rather have the XYZ bank pay for it,” he said.
I would be curious to know exactly why Buffet supports Hillary if his position on the economy and government's role in it is 180 degrees opposite of hers. It has been reported that Buffet has been giving Hillary economic advice. While they both seem to agree on the positive effects of the inheritance tax, they are 180 degrees from each other on this. I can only assume that economic issues are the most important issues to Buffet. Yet, on the most immediate economic issue, Buffet sees the world exactly 180 degrees opposite of the candidate he supports, a candidate he supposedly advices on these issues. I must ask again, why does he support Hillary Clinton.
I will be curious to watch Buffet on the campaign trail for Hillary and see how he views her economic perspective.