‘Financial panic' over, Warren Buffet says

Fundamentally, the US economy has lost its engine -- desigin and manufacturing consumer products is the essential engine, and it has all but evaporated.

It hasn't been effective in those spheres for a long time.Design..maybe. It has to get better at its strengths which are intelligent and value add processes and services. Trying to protect tire manufacturing - not so much

Hard to compete with slave labor, there, RNG, when it comes to making tires.

Specially when you see that a large proportionof the major investors in those Chinese tire plants are in fact American tire manufacturers spreading their investments, as they lose market share with their domestic made product. There is so much irony in that at so many levels, and then the protectionists tried to close the door, on American investment in China, being imported back into America...well, you can see the circularity of the flow and how we keep managing to shoot ourselves in the foot

I just started reading Paul Krugmans book Depression Economics about recessions and depressions and inflations and deflations.  I am only 70 pages in, but he presents the material with historical basis and significance and looks at the economic crisis in a practical way with practical solutions.  He doesn't preach doom and gloom, rather says this is how a recession is created and this is how its solved.  The Capitol Baby Sitting Coop analogy is really genius, and its the first time that I felt confident in my knowledge of a recession. 

If Warren Buffet says its over and put his billions where his mouth is, then we should give him the benefit of the doubt.   Transportation projects have always been a great economic stimulator, so his investment in railroads is following in a great tradition.  (I always buy the railroads when I land on them in monopoly.)   : )

Yay you are reading Krugman! It is going to make things so much clearer. maybe we should save up and send a copy to PIM

I just watched the Gates/Buffet symposium at Columbia.  They had so many positive things to say.  I liked in particular what Buffet said when they asked about his investment in Burlington Railroad.  He said its an investment in America, the jobs are not going anywhere but right here.  And rail is definitely the future because one train on one gallon of diesel fuel equals 400 trucks in the same distancce.  That is pretty amazing.  He said rail will be the future because of its economy and ability to travel the whole U.S.  They did said laughingly that those trains will be carrying goods from all over the world as global markets continue to grow.

Bill Gates talked about the future of new industries and where the next "microsoft" might be.  He was predicting in the area of sustainable energy; however, he cautioned that many will fail, but the few that are success can equal microsoft in scope and innovation.

They spoke on other topics as well,  and if they show it again, I highly recommend it.   

I would have a lot more faith in their prognosticating abilities, had they been telling folks in 2006 or 2007 to be prepared for a long tough spell.

I'm sure if Buffet was a little surprised that the derivatives he so heartily condemned cost him multiple billions when things fell apart last year.

Buffet is a lying old statesman who will say anything to keep people putting money into his coffers. He just bought the railroad business...knowing darn well things are getting bad not better. Why would he invest so much in the Railroad business, unless he wasn't trying to railroad us? He knows less jobs are in the future....and that means the need for cheaper transportation....to move the stuff that we do have.... If trains go electric he has a chance to salvaging some of his worthless money...Given the size of the US debt...the still inability of banks to pay back the bailout, and of course the no plan Obama has in paying back the stimulus....because jobs are not made out of thin air...Just what the hell are you fantasy talkers talking about? People still can't pay their mortgages, and States are cutting off their middle fingers because of no budget to pay for services. With the still on going lying war...and the heap of money they still dish out to the Military for no damn good reason..they are planning to give Americans' a new Healthcare system.. Now tweak this and tweak that..and all we have is rosey colored eyes from last night.....and everyone thinks Buffet is the American Crystal Ball to prosperity and green acres for everyone? He is nuts...literally going senile... I am surprised he has no big bell sticking out of his ear...and yelling what'ya say? Buffets secret is take and lie...and blame everyone else for the trouble.... Obama has made sure to limit Chinese goods into America....and just what are they going to do? But ramp up the manufacturing and try to sell goods on the inflated side in exports to China? Isn't going to work.... Infact they will go bankrupt again... And given the Global warming problem......American's could give a shit about that...They want to do more and more damage to an environment already on the edge to no return.. Just what sense is that? BUy more cars...for what? I am really amazed and ashamed that Americans do nothing to solve this problem..except buy more gas cars.....and keeping the pressure on for more and more oil.. How many times have we been warned....yet they want you to shop til you drop....so they can keep money hoarders like Buffet in the top Fortune 500.. He is a disgrace to the meaning of being a billionare and a man of influence.. His track record and him being in the United States proves his collossal failure...... So by all means believe this pie in the sky leprechaun...and he might have you believing you won the International Lottery from The Republic of Nigeria.

The Rev.