During the credit crisis of 2008, Wall Street and the Bush administration called upon billionaire investor Warren Buffett to help the banks and the government stem potential insolvency in the financial system. Buffett went on to invest in Goldman Sachs, thus helping to save the banking giant, and he also advocated more government spending and economic stimulus for the economy.
Once again, with an imminent financial crisis facing the country, the President, this time Barack Obama, is calling on Warren Buffett for advice to help stem another market collapse. This overture for assistance on August 22nd comes at a time when the President is off on vacation, and Congress is in recess.
It may not be quite Obama telling us to buy stocks as he did on March 6 due to attractive "profits and earnings ratios", but it is about as close as him advising it is time for everyone to do their patriotic duty and buy shares of floundering Wells Fargo:
· OBAMA CALLED BUFFETT TO DISCUSS MEASURES FOR SPURRING ECONOMY
We can't wait to hear what 'altruistic', taxpayer bailout-funded ideas the Octogenarian of Omaha had. In the meantime we wonder: just why does Obama have an economic advisory team. Oh wait, after everyone bailed on him, Obama has no economic advisors left at all. Carry on then. - Zerohedge
The American people need to look at two aspects of this decision to call in the billionaire private investor for assistance, as the results of his previous advice did little too help the US economy, and instead provided an opportunity for the Oracle of Omaha to make enormous profits. Buffett's investment in Goldman Sachs at $105 a share nearly doubled over the next two years thanks to the government bailout of the institution, and Fed intervention at the discount window. Secondly, the Obama adminstration already has numerous advisors, economic czars, and cabinet personnel that are paid by the taxpayers to deal with crises such as this one. If they are not capable of dealing with the crisis, then new people may be needed to serve the American people.
Couple this with President Obama's track record of using private business advisors such as Jeffrey Immelt (CEO of General Electric), who's company paid $0 in taxes in 2010 and just recently shipped thousands of jobs overseas, and the evidence points to the fact that corporate interests will profit on their own advice over the needs of the American people.
If President Obama is once again seeking the guidance of billionaire Warren Buffett to help the administration during another financial crisis that is currently brewing in the markets, and the banking system, then the American public should have serious doubts about the people currently in office who are being paid to deal with both the economy, and the financial security of the nation.