Warren and Charlie

I often tell friends to put peanut butter in the basement, which I stand by, as a safeguard for normal people, but here is Warren Buffet on Charlie Rose with a macro view. As usual he speaks in everyday terms. Indeed, he says be afraid of geeks and formulas. You can click on the title.

From my perspective, I agree with views on causes, events, remedies and human nature, but the key thing to see is his positive (make more money) view of investment in the best economic machine there is, with the exception fanning the real estate bubble (Fannie and Fredie craziness.) For example, our exports are up to 12 percent from five, just a few years ago. He says we are doing a good job.

He projects a likely inflation down the road because of the decisions being made now to deal with the problems at hand. He says this is a later pain for today's injury. So, adjust to that. On the other hand, he is confident things will be dealt with and the government will actually make money.

You can tell he is an Obama fan as he never mentioned the "B" word for an hour, though he loves Paulson and the people working at Treasury (he'd like to hire whoever got the terms in the plan) and was satisfied that Congress will do something that is better than nothing (tape is from last month). The plan is Congress' to him. I miss how they have a plan, especially if he wants to hire people in the Treasury. I recall Harry Reid saying, when the plan was presented, he didn't know what to do.

I do recall McCain and the B administration went to this Congress 17 times to try to reel in Fannie Mae, as it was a time bomb. I do recall the Democratic banking leaders in 2005 ridiculing concerns over the housing monsters. To this day, I don't understand why McCain didn't play the tape of his appeal in 2005 every day, all day, not that he would be much good, either.

One must agree with Buffet's notion that first you get the athlete off the ground, then find who is at fault. Sadly, those at fault are the ones in charge of the search and they will be appointing the investigators who report to the press. Last week there was an AP story how the Bush administration was too lax. One hopes there is a hell.

Re the insertion of socialism in return for federal assistance [if you don't get it, you may want to consider the "auto czar," the promotion of unions by bailing out car companies and eliminating the secret ballot at union elections, and the announced need for a national medical system to help the burdened car companies], he said, first, get the athlete off the ground, later we can deal with who did what and what has happened.

You have to love his long, tempered view. I draw some solace there, in the midst of people being idiots. I just hope we don't lose, or sell off, our way. The drumbeat of fear can lead us all to doing even more idiotic things.

Part of the problem is, he can take the high road. So, it is easy to be detached if you are in the Krupp family.