Beware of Warren Buffett

Warren Buffett took a break recently from advocating higher taxes on the wealthy, and decided to prop-up Bank of America.  All of this raises many questions about just what the F*$% is going on.  One of the richest men on the planet thinks that the wealthy should be paying more in taxes...income taxes, that is. Warren ignores the fact that real, down to earth 'Mericans like him who are lucky enough to be rich, are completely unaffected by higher income tax rates.  These guys ALREADY HAVE MORE MONEY THAN THEY CAN USE.  For example, Steve Jobs has an annual salary of $1.  ONE FREAKIN' DOLLAR!  You could tax these guys at 100% of everything they earn - income, capital gains, appreciation on their childhood baseball card collection - they will remain ludicrously wealthy.  Families that are at the low-end of the rich spectrum do not have that luxury; they are still busting their respective humps to get to the point where they are financially secure.  Raising their taxes does have an effect.

So, Buffett then makes a long-term investment of $5billion in BofA.  Exactly why is an 81-year-old making any long-term plans?  This guy doesn't need to check the expiration dates on milk before he buys a gallon.  Strange, no?

This is part of the subject of an article posted at Zero Hedge, wherein the author takes a few interesting stabs at Buffett. 

The truth of the matter is, as I and other have exposed these last several years, is that he essentially runs a financial services company.  When the system itself was threatened the status quo was threatened.  Buffett stepped in and became a government agent once he saw the writing on the wall.  He did not step up for America.  He did not step up for the people.  He stepped up for himself and his legacy.  He stepped up to save the status quo because he is the status quo.  All of this raises a very serious issue in America right now and one that needs to be dealt with in the next crisis (which has arrived) or we will never be able to recover into the world’s most vibrant and dynamic economy again.  A lot of people lament the lack of upward mobility in the U.S. right now and I share those sentiments.  However, equally important is downward mobility.  What makes the concept of America unique is not merely the concept that the poor can become rich but that the rich can become poor.  It is this second part that is the most dangerous to social cohesion when it disappears.

First of all, this $5 billion preferred investment by Uncle Warren in preferred stock is extremely bearish for the market, the economy and the financial system.  This is not an investment, it is political-economic strategy.  It tell us so many things that we probably already suspected.  It tells us that Bank of America did indeed need capital.  Even worse they probably need so much that they went to Uncle Warren for five big ones so that people would just look the other way and gain “confidence.”  This is how out to lunch these guys are.  They don’t understand that the root of the lack of confidence is that the people see a country devolving into a Banana Republic led by greedy oligarchs and politicians stealing everything in sight as the ship sinks.  So then they roll out the number one crony capitalist in America, tell us he is investing in Bank of America and expect that to lead to confidence!!  What a bunch of maniacs run this nation.  This is 1789 France folks as I have said many times before. Second, the fact that TPTB are resorting to Uncle Warren for everything now may mean the Fed is out of the game.  No one has confidence in the Fed to come save the day so they need the next thing.  That next thing is Uncle Warren.  Unfortunately it’s not working and it is not going to work.  You can see it in the market today.  People are waking up.  They are starting to see through the matrix.  Buffett is a fraud and a shill.  If you follow him it will be right over a cliff.

 The whole article is worth reading; I just wanted to give you a taste of it first.