A Buffoon
See more about that in my previous blog post here.
He Wants Bernanke To Stay On
Warren Buffet was all over the news again domestic and international, see e.g. here. He endorsed Ben Bernanke to continue for another term.
The reckless chief of the Fed should have resigned a long time ago. See my previous blog posts here, here, or here.
Fed Is Greatest Hedge Fund In History
However, Mr. Buffet is quite right to call the government run Fed has become the “Greatest Hedge Fund In History” under the auspices of Ben Bernanke.
Which raises at least one fundamental question whether any government run central bank ought to make profits in the financial market? E.g. the German Bundesbank was also famous for its frequent and significant annual profits which were then transferred to the German federal budget.
Or should government run central banks (e.g. Fed, or EZB) be allowed to buy government treasury bonds at such an extent that their balance sheet triples in a few years like it has happened in the wake of the Great Recession?
Buffet A Latecomer
Where were Mr. Buffet when the Fed started to become the “Greatest Hedge Fund In History”? He is coming a little late to the party. I wonder whether he waits with his investments until several years later?
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