He talks about some of the reason why the economy is so bad. And why what there doing isn't helping.
Also heres a story I posted the other day that is related.
www.abovetopsecret.com...
Derivatives bubble explodes five times bigger in five years
Wall Street didn't listen to Buffett. Derivatives grew into a massive bubble, from about $100 trillion to $516 trillion by 2007. The new derivatives bubble was fueled by five key economic and political trends:
Sarbanes-Oxley increased corporate disclosures and government oversight
Federal Reserve's cheap money policies created the subprime-housing boom
War budgets burdened the U.S. Treasury and future entitlements programs
Trade deficits with China and others destroyed the value of the U.S. dollar
Oil and commodity rich nations demanding equity payments rather than debt
In short, despite Buffett's clear warnings, a massive new derivatives bubble is driving the domestic and global economies, a bubble that continues growing today parallel with the subprime-credit meltdown triggering a bear-recession.
"What we are witnessing is essentially the breakdown of our modern-day banking system, a complex of leveraged lending so hard to understand that Fed. Reserve Chairman Ben Bernanke required a face-to-face refresher course from hedge fund managers in mid-August."
[edit on 13-3-2008 by JBA2848]
[edit on 13-3-2008 by JBA2848]
