Me thinks there's more to lose on the way, even if, as I've been saying, the dollar will variously hover around buck thirty against the euro.
He's getting old.
The likelihood is that if the bet didn't pay off last time, it will pay off this time. However, if it doesn't, I won't feel sorry for Buffett.
For all those currently short against the dollar, you gotta ask yourself...Do you feel lucky?
Well...Do Ya!?
If short investors try to get out before a "squeeze", the Yankee dollar might see a nice upward climb.
Warren, ol pal, I don't normally give investment advice, but you just might consider going short on the French franc.
.
I hope he learnes what the Hunts learned in the silver business.
He will let it ride. The odds, given US deficit spending, and balance of trade imbalance, are highly in his favor.
Those who are having their chuckles now, can go play their favorite state lottery. Suckers.
I remember posting a few months ago , Buffy was trying hard to talk the currency market . Oopps ;O
I think you nailed it. Buffett was angry that Bush won, and stupidly put his money where his mouth was.
I could only guess when it comes to currency speculation. I don't think that our fiscal policy of constant deficits is prudent. The National Debt has increased every single year for the last 45 years. I would like to see them balance the budget and stop the bleeding. Ain't gonna happen.
The Euro has it's limits too. Europe has some serious problems in unemployment, high cost social programs, and the European demographic timebomb.
If I was going to speculate maybe I would bet on Chile, Ireland and maybe Iraq once they become stabilized. The Chinese Yuan is undervalued and pegged to the dollar by the government. That would probably be the safest bet. It can only go up in my opinion, and the worst case is that the government continues the peg and you get a return of capital instead of a return on capital.
It would be interesting to see just what currencies that Buffet is invested in.
I think that the problems that Buffet talks about are very real, and at some point we will have to confront deficits and debt.
I wouldn't bet against him. I also have some hedged positions against the dollar and will keep them.
The dollar is going down further.
BUMP
This is another example why I will never invest in a fund or corporation that is run by a luntic liberal or a pack of lunatic liberals.
Only God knows where, how, and why they invest your money.
Is it to make more money or was the investment triggered to harm America, President Bush and those of us who are not on the rat side?
If I'm interested in a fund, there is a site which shows the top 25 holdings held by a fund. If that fund's total holdings are more than 5-10% liberal controlled companies, I will not invest in that fund.
Below is the link to find out what holdings your fund owns or a fund you are considering buying holds:
http://moneycentral.msn.com/investor/partsub/funds/holdings.asp?Funds=1
Buffet has another problem with his AIG purhases and stands.
Buffett Parries Questions on AIG By Jonathan Stempel
Sat Apr 30, 6:48 PM ET
Warren Buffett on Saturday again went on the defensive, resisting attempts by shareholders of his Berkshire Hathaway Inc. (NYSE:BRKA - news) (NYSE:BRKB - news) to learn more about regulatory probes involving Berkshire units.
The 74-year-old billionaire has suffered unwanted publicity in recent months as U.S. and Australian regulators examine transactions involving Berkshire's General Re Corp. reinsurance unit.
"To protect the integrity of any investigation like this, investigators do not want one witness talking with other witnesses, because people can tailor their stories," Buffett said in his opening remarks at Berkshire's annual meeting. "To talk in a public forum is a way of signaling people what you said."
Despite this admonition, Buffett fielded a handful of shareholder questions on reinsurance, and at times appeared to sputter as he responded.
In one probe, U.S. regulators are examining a contract that helped giant insurer American International Group Inc. (NYSE:AIG - news) make its results look better. Regulators interviewed Buffett on the matter, and Berkshire has said Buffett was not briefed on the transaction's structure or any improper purpose.
That transaction led to the March departure of AIG Chairman Maurice "Hank" Greenberg, once considered the most powerful U.S. insurance executive. AIG delayed filing its annual report, or 10-K, and said accounting problems dating back 14 years may force it to write down some $1.77 billion of shareholder equity.
'I JUST HAVE NO IDEA'
"I don't really think I should comment on AIG," Buffett said in response a question from a Berkshire shareholder. "There will be more disclosure on the situation at AIG, and I really don't know about anything that will be in that statement (annual report). I will read that statement, and I will read it with interest."
Later, asked about Greenberg, Buffett said: "Hank Greenberg was the number one man in insurance. He developed an extraordinary company in his lifetime. ... But in terms of evaluating where it stands now, what will be revealed in the 10-K when it comes out, I just have no idea."
Greenberg would not answer questions from regulators looking into AIG's accounting, citing his constitutional right against self-incrimination.
Regulators have subpoenaed several companies, including General Re, on whether "nontraditional" or "loss mitigation" products might function as loans to help companies smooth earnings, or camouflage earnings weakness or losses.
Asked at what point a reinsurer might bear responsibility for another company's improper activity, Buffett said, "It really gets down to whether there is knowing participation."
He also said that "reducing volatility is not bad at all. ... But you can also get into abuses of that."