Warren Buffet: Now Is the Time to Buy American Stocks

Warren Buffett says now is the time to buy American stocks:

Buffett, at times the nation's richest man (back and forth with Bill Gates of Microsoft) says prices are low and a better value than holding cash or cash equivalents. He says the stock market will go back up...maybe not in a month, but in the next 5 or 10 years.

Buffett said:

"THE financial world is a mess, both in the United States and abroad. Its problems, moreover, have been leaking into the general economy, and the leaks are now turning into a gusher. In the near term, unemployment will rise, business activity will falter and headlines will continue to be scary.

So ... I’ve been buying American stocks. This is my personal account I’m talking about, in which I previously owned nothing but United States government bonds. (This description leaves aside my Berkshire Hathaway holdings, which are all committed to philanthropy.) If prices keep looking attractive, my non-Berkshire net worth will soon be 100 percent in United States equities.

Why?

A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors. To be sure, investors are right to be wary of highly leveraged entities or businesses in weak competitive positions. But fears regarding the long-term prosperity of the nation’s many sound companies make no sense. These businesses will indeed suffer earnings hiccups, as they always have. But most major companies will be setting new profit records 5, 10 and 20 years from now."

Read the rest here.

The Market Breathes a Sigh of Relief. Dow Up 936 Points

[George Soros is the creepy guy in the picture]

Update at bottom***********************

The market breathed a sigh of relief as the Dow was up over 900 points and world markets rebounded. The relief was based on the central banks of the Western world meeting and their plans to rescue the various banks and markets across the world.

This is good news but the storm may not have passed. Great Britain has nationalized it's three largest banks and George Soros is floating a plan for the US to buy equity [read controlling interest] in all of the American banks.

Of course, I don't trust George Soros. When he's happy about the government buying into banks, my warning system goes off.

Wait a minute...can you see Nancy Pelosi dictating who the banks should give loans to? OMG. It was Obama's advisors who ran Fannie Mae into the ground. [Click here for Washington Story.] Besides them, it was the Dems who pushed for open lending so everybody could get a loan. They ignored the Republicans warnings in 2006 that the system was broken. It was Mass. Rep. Barney Frank, head of the Congressional Banking Committee, who said in this past summer that going forward Fannie Mae and Freddie Mac were doing fine.

My mind boggles.

Imagine the new Soros planned US Government owned bank loan application:

1. Purpose of Loan: Never mind!
2. Do you wholeheartedly believe in Global Warming? If yes, go to #3
3. Do you support same sex marriages? If yes, go to #4
4. Do you support putting more and more animals on the endangered species list? if yes, go to #5
5. Do you support more and more taxes?

If you answered no to any of these questions, LOAN REJECTED!

I'm having a nightmare while awake.

Next thing you know, they'll put some community organizer with no leadership experience in charge just because of hope, or change, or some such drivel.

Oh yeah, they're trying to do that now. His name is Obama.

Update: It appears the US is already planning to buy equity shares in the top nine US banks.

Job Market 2009

My sister sent me this. Quite hilarious and very apropos. You only need to watch the first 2 minutes.