Warren Buffet's 2009 Annual Report - Concerns about huge spending programs.

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Warren Buffet's 2009 Annual Report - Concerns about hug... - 2/28/2009 6:29:32 AM

corysub

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Commenting on the federal government's actions to resolve the economic crisis, Buffett said:

Economic medicine that was previously meted out by the cupful has recently

been dispensed by the barrel. These once-unthinkable dosages will almost certainly bring on unwelcomeaftereffects. Their precise nature is anyone’s guess, though one likely consequence is an onslaught of inflation.

Moreover, major industries have become dependent on Federal assistance, and they will be followed by cities and states bearing mind-boggling requests. Weaning these entities from the public teat will be a politicalchallenge. They won’t leave willingly. Whatever the downsides may be"

And how will Obama face these challanges? We have already seen that...tax, tax, and tax..take, take, and take...give, give and give... cory

Edited to add link: http://www.berkshirehathaway.com/letters/2008ltr.pdf

< Message edited by corysub -- 2/28/2009 6:41:20 AM >

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RE: Warren Buffet's 2009 Annual Report - Concerns about... - 2/28/2009 7:47:54 AM

Termyn8or

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Don't forget that congress also votes on these things. The bailout was proposed during a neocon administration with plenty of urging from the oval office.

So a loaf of bread is going to be nine dollars. Of course a house might also be nine dollars because there will be no buyers (an exageration sure, but I got an excuse, it is Saturday).

One thing I am starting to wonder is just when the money is going to run out. Some may assert that this is impossible, that the main problem will be inflation, but I differ. There may come a time when we simply can't afford to pay any more interest. I am not so sure that we are not already paying interest on the interest.

After my remaining brain cell wakes up I might jog about the net and see if I can't find out just what percentage of the GDP is comsumed by this debt service.

Paying the debt down has been off the table for some time now on both sides of the aisle. I don't think any of "them" even gives it a first thought, let alone a second thought. After all we are paying interest on foreign aid, something which is exceedingly illogical to me.

It's bad enough that we gave Israel $5.5 B in 2003, because they are not broke and they are not that big. But when the interest is factored in the figure becomes more like $10 B. I don't see any pictures of Israeli families sitting in the sand malnourished with flies all over them. However aid to Israel is not the only problem, there is a hell of alot of foreign aid going out, and we are paying interest on almost all of it if not all of it.

It just seems stupid to me that we borrow money to give away, however I am aware of the situation extant now. We are buying our friends and propping up unpopular governments all over the place. If you add that all up, the stimulus package is not so scary. I am not saying it is dwarfed, by no means, but in comparison, are all these costs much of a bigger portion of the GDP than FDR's programs ? Of course the difference is that most of the FDR money for public works etc. was spent here. So perhaps it is apples and oranges.

I am to the point where I see this as digging their own grave. Every time we forstall the eventual collapse, we make it worse.

Both my only sibling and I are going to die without offspring, so maybe I can afford to be selfish, because we don't care what happens to our properties when we die. But on the upside, we hold no false optimism, which is something that may help to keep people with offspring at least sane and able to function.

So it boils down to this, the economy was going to get wrecked anyway. I supported Obama for one reason and one reason only, that he expressed a desire to get out of Iraq. Other than that I can't stand democrats, their platform or their ideals. It's just that the alternative was so much worse. A chicken in every pot indeed, go get your own chicken !

However, if the neocons call themselves republicans, count me out. There is only one republican I know of, Ron Paul, and he is not getting the big chair. I am not so sure I would even want him there, but if he had a chance at all I would've voted for him.

So it's to hell in a handbasket, and so be it. Without the power, which could only come from solidarity, this is basically all idle chatter. They are going to do what they are going to do.

I patiently await the day when they can no longer pay their soldiers, officers and other minions. Then the tables might turn. They have chosen to "serve Mammon" but they are killing Mammon. So rejoice in their suicidal ways.

T

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RE: Warren Buffet's 2009 Annual Report - Concerns about... - 2/28/2009 1:06:16 PM

rulemylife

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Warren Buffett and NBC's Tom Brokaw: The Complete Interview ...

Tom: You've talked about in your office, for example, you pay a much lower tax rate with all of your wealth than, say, a receptionist does.

Warren: That's exactly right, Tom. And I-- I think the only way to do it is with specifics, and-- and - and in our office, 15 people cooperated in a survey out of 18. I didn't make anybody do it. And my total taxes paid-- payroll taxes plus income tax-- and the payroll tax is an income tax. It's based on income.

Tom: Yeah.

Warren: Mine came to-- 17.7 percent. That-- that was the-- that was line 61 I think-- or, no, line 43-- is the percent of taxable income, plus payroll taxes, 17.7 percent. The average for the office was 32.9 percent. There wasn't anybody in the office from the receptionist on that paid as low a tax rate. And I have no tax planning. I don't have an-- I don't have a-- an accountant. I don't have tax shelters. I just follow what the U.S. Congress tells me to do.

Tom: Why do you think that there's not more outrage about that?

Warren: I-- I don't think people understand it. For one thing, you'll see a lot of surveys that say the rich, the top one percent pay this much of the income tax. Now I think what people don't realize is that almost one third of the entire budget comes from payroll taxes. And payroll taxes on income, just like income taxes are taxes on income.

And the payroll tax is over $800 billion out of two and a trillion, or something like that. And people don't understand-- they-- they-- that the rich pay practically no payroll tax.

I mean, I paid payroll tax last year on $90 odd thousand, whatever the number is. I paid income tax on $66 million. But my double income tax, one of 'em quits at $90,000. And the remaining $66 million does not get taxed with payroll tax. So, the person who makes $60,000 in our office gets ta-- taxed in full on the payroll tax, and taxed in full on the income tax. And-- and all the statistics you read, particularly the one don't like taxes, well now, they totally ignore the payroll tax. And it's huge now.

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RE: Warren Buffet's 2009 Annual Report - Concerns about... - 2/28/2009 1:22:21 PM

rulemylife

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Warren Buffet Backs Obama For President

Warren Buffett, the world's richest man, is backing Barak Obama for US president and thinks current US economic policy will push the dollar lower against other global currencies

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RE: Warren Buffet's 2009 Annual Report - Concerns about... - 2/28/2009 4:32:11 PM

LookieNoNookie

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quote:

ORIGINAL: corysub

Commenting on the federal government's actions to resolve the economic crisis, Buffett said:
Economic medicine that was previously meted out by the cupful has recently
been dispensed by the barrel. These once-unthinkable dosages will almost certainly bring on unwelcomeaftereffects. Their precise nature is anyone’s guess, though one likely consequence is an onslaught of inflation.
Moreover, major industries have become dependent on Federal assistance, and they will be followed by cities and states bearing mind-boggling requests. Weaning these entities from the public teat will be a politicalchallenge. They won’t leave willingly. Whatever the downsides may be"

And how will Obama face these challanges? We have already seen that...tax, tax, and tax..take, take, and take...give, give and give... cory

Edited to add link: http://www.berkshirehathaway.com/letters/2008ltr.pdf

Good Gawwwwddd.....

It always stuns me, all the "Republicans" that feel the need to explain to everyone (no assumptions on you...just the whole Rush trend)....that higher taxes suck.

I'm one of those guys that Buffet was talking about....no I'm not in his tax bracket....but I pay a ton of taxes. More than most. More than 99.99975%.

I pay less today than I should...less than I could...and if it changed (upwards) it wouldn't have even the remotest possible effect on my lifestyle.

Bush changed the tax laws several years back...and Buffet, Gates and others (again, I'm not in their class by any stretch) all said..."but I don't need this tax break...and...I don't want it...please don't give it to us....".

Now seriously....do you think those people (or I) would send extra? So they could simply put it into the general fund? To spend foolishly?

Nope.

With that said...I'm thrilled that Obama has raised the tax rate. It'll affect my tax bill by about 45%...which is a bunch in any calculation....most (91%) tax bills will go down.

It could be argued that people like me will retrench...hold our dollars...that's just not true...we'll invest (we don't have any choice)...in apartments and retail buildings for those who can't afford to buy, and because there will be fewer investors...my returns will go up.

Exponentially....but not right away.

And over time, this will help the economy...over the short term, it'll hurt...because there'll be fewer dollars in the private sector available for investment.

True. But equilibrium settles things magnificently...and this too will take time.

I don't know a single person in my tax bracket that isn't thrilled for the (long term) benefits of his tax plan.

Short term....it's gonna suck.

(And if anyone hadn't yet guessed...I'm a Republican.....and....I voted for Obama...and thrilled about it).

< Message edited by LookieNoNookie -- 2/28/2009 4:33:57 PM >

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