Sunday, March 1, 2009

even the experts can't figure out this market

http://www.huffingtonpost.com/2009/02/28/warren-buffett-admits-mis_n_170729.html

Warren Buffet, who's Berkshire Hathaway stocks have tumbled dramatically, tried to put a brave face on his missteps in not seeing the recession that has now hit us. I bought one share of Berkshire Hathaway and have seen it's value drop by about 1/3. I was trying to decide whether to keep the money as cash or put it in some solid investment. Oops.

So, everywhere you turn, you can find financial experts like Buffet who completely missed what's going on now. Even the experts don't know what's going on. And if that's the case then I think the prudent thing to do is to quickly move to simplicity, security, and oversight. Keep the system simple enough that humans can understand what's going on (no inventive crap like derivatives). Be convervative with investments and don't run after the Bernie Madoffs promising grand returns. And make sure there is government oversight of the economy.

Capitalistism has shown its soft underbelly. Now it needs to show that it can repair its weaknesses.

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