I think I'll send Mr. "Productive" a copy of the Declaration of Independence. Being "nonproductive" about taxes lead to the creation of the greatest nation on Earth.
Buffet will look good in tar and feathers—it matches his complexion.
I knew he was really gone when he jumped up on the buffet table in Vegas and screamed, “I’m Mr. Buffet! Eat the RICH!”
up yours warren
Obama voter, ‘nuff said.
I’m sure Warren Buffett knows what its like having to choose between paying the power bill or buying food for the kids.
FOAD buffett!!!!!!!!!
LLS
It's stimulative for you and your croney capitalist, rent-seeking ilk, Warren. The rest of us have to foot the bill.
Stop attacking the productive people, and stop trying to make them feel guilty and ashamed for wanting to keep taxes low so that they can keep what they have earned and deserve, and use it to pursue their own personal happiness.
The article is utter nonsense, not to mention the factual errors. It would be funny if it weren’t sad someone is writing about something they don’t understand.
The so-called “naked” puts sold by Berkshire Hathaway were collateralized by a massive up-front cash payment upon which the firm got to hold and earn interest and dividends for years. Factoring in the time value of money, the maximum potential liability was approximately $40 billion over a period stretching long after Buffett’s expected lifespan.
The only way - LITERALLY - the ONLY way - the entire amount could have been “due” was if the entire stock markets of the combined European Union, representing a massive portion of the industrialized world, went to ZERO. Even in the case of hyperinflation (which isn’t likely because the printed money from the western nations still has barely exceeded the M2 and M3 money supplies caused by the credit bubble), the nominal value of the markets would be astronomical, meaning Berkshire got to keep ALL of the money.
Furthermore, unlike the idiots at AIG, Buffett was intelligent enough to negotiate terms that mean that under NO CONDITION can Berkshire be required to come up with ANY cash prior to the maturity date on the underlying positions. It was the collateral calls that caused AIG’s meltdown. It cannot happen here.
So if we do have high inflation = no payout plus all the dividends and interest
If the market does fall over the next few decades = $40 billion represents a relatively small portion of the total pre-tax profits generated by the subsidiaries over the same period! The loss could be thought of as interest expense on a loan.
But the major point is, if the entire European Union goes to ZERO a few decades from now, the whole world has gone into Armageddon hell-in-a-hand-basket.
The same author further displays the depths of his ignorance when talking about the bailout and how banks like Wells Fargo raped the American people. Anyone who was within 3,000 miles of Montgomery in San Francisco knows that the Board and executives of WFC were beyond livid that the government FORCED them to take TARP money, basically threatening to put them out of business if they didn’t.
The White House knew that if only the weak banks took the cash, the market would know which ones were on the verge of failing. That is why it forced the stronger banks with virtually no problems relative to tangible capital, such as U.S. Bancorp and Wells Fargo & Company to take the money anyway. Everyone involved bitched to high heaven and repaid the funds as soon as allowed by the Treasury department. To act like it was some great raid of the public coffers by those players when the real thieves were the folks at Citigroup, etc. is just moronic.
The whole thing oozes the kind of ignorance of someone who doesn’t have more than a third grade education in accounting, economics, finance and banking regulations but their own life sucks so they want to blame someone.
Unfortunately, they are blaming the wrong people - you want to know who is guilty? Take a look at the Tier 1 capital ratios and adjust the Basel II figures for asset quality a year before the meltdown. Wachovia was screwed. Washington Mutual was screwed. Citigroup was screwed.
But Wells was a damn fortress. Northern Trust was a goldmine. U.S. Bancorp was so strong it looks like they were overcharging reserves to purposely drop profit (the local branch managers were buying shares at $8 each, some of whom were putting most of their liquid assets in it during the crash!).
The original author’s diatribe is neither conservative nor intelligent. The civilization would be greatly improved if he had the good sense to pull it down before anyone else saw it.