Isn't it interesting that Saint Warren of Buffett, the government's favorite billionaire investor, is suddenly pressuring Congress to exempt his firm's derivatives dealings from pending legislation?
Yes, and others like his firms', too, of course.
But the point is, when Buffett's corporate ox is about to be gored, suddenly no amount of lobbying is too small. No exemption from the regulation of hated derivatives is too trivial.
This is the same Buffett who so famously referred to derivatives as "toxic," crediting them for turning financial markets into a "casino."
Well, to paraphrase Churchill, we now know what Buffett is, only his price is left to be determined, isn't it?
Maybe Buffett should have made more nuanced, informed comments when dissing all derivatives. Because you can bet he's now singing a different tune. He's no doubt extolling the necessity of reinsurance and insurance firms using derivatives to hedge their legitimate business risks.
Yes, all true. But not what Warren was saying for the past decade, is it?
No, as losses from new regulatory compliance loom, Buffett is getting a new religion.
If this doesn't sour people on this false "oracle," from Omaha, what will? He's shown himself devoid of real principles when it's crunch time. His views echo his and his firm's P&L, nothing more.
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