Warren Buffett Thanks Uncle Sam for Averting an Economic Meltdown

Warren BuffettWarren Buffett, the Oracle of Omaha, thanks Uncle Sam in an op-ed letter in The New York Times Wednesday for acting to save the U.S. from the worse economic crisis in generations.

In 2008, Buffett begins his letter, Fannie Mae and Freddie Mac were forced into conservatorship, Lehman Brothers went belly up, and AIG (AIG) was at "death's door." With financing for companies disappearing, "all of corporate America's dominoes were lined up, ready to topple at lightning speed," Buffett writes. And it wasn't just the corporations, he adds, "300 million Americans were in the domino line as well," with their jobs, income, and 401ks at risk.

"Well, Uncle Sam," the CEO of holding company Berkshire Hathaway (BRK.A, BRK.B) continues, "you delivered. People will second-guess your specific decisions; you can always count on that. But just as there is a fog of war, there is a fog of panic -- and, overall, your actions were remarkably effective."

Buffett goes on to commend Ben Bernanke, Hank Paulson, Tim Geithner and Sheila Bair, who "grasped the gravity of the situation and acted with courage and dispatch." He even credits George W. Bush for his leadership.

Commenting about the housing crisis, Buffett called it a mass delusion that produced a bubble. "This bubble was a doozy and its pop was felt around the world."

Signing off as "Your grateful nephew," Buffett concludes: "In this extraordinary emergency, you came through -- and the world would look far different now if you had not."

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ed huetteman

Amazing. Someone is praising the government. The tea baggers would have had us in a real depression if they let the the free market fix things.

November 18 2010 at 5:13 AM Report abuse rate up rate down Reply
Robert & Lisa

He's totally wrong. With giving Wall Street all of this money we didn't have, only puts off the day of reckoning and makes it far worse. Let the free markets do the job. The big fat cats go broke and the little people pick up the pieces and prosper. The system resets itself as long as the government gets the H___ out of the way. George Soros's puppets, Obama and thugs strike again.

November 18 2010 at 4:42 AM Report abuse +2 rate up rate down Reply
1 reply to Robert & Lisa's comment
trblhnds

Does George Soros really have that musch control? I am just asking ?

November 18 2010 at 6:21 AM Report abuse rate up rate down Reply
enpassant44

He's right. Without swift, decisive action this economy could have been much, much worse. People who don't realize that are living in a fog. Even Bush's TARP was essential. And politicians who know nothing about the economy should trust the actions of Ben Bernanke, who is a scholar on the Great Depression.

November 18 2010 at 12:53 AM Report abuse -1 rate up rate down Reply
1 reply to enpassant44's comment
Robert & Lisa

So you think everything is ok now. It was a temporary fix. By bailing out the rich people it only makes the rich richer and the poor poorer. If they wanted to do something smart, they should have given every taxpayer $10,000. Thanks, George Soros, the puppet master and Obama and thugs for turning a bad situation into a far worse one.

November 18 2010 at 4:21 AM Report abuse +1 rate up rate down Reply
pmurph2000

Thanks Uncle Sam for the insider knowledge so I could recoup my losses and become even more obscenely rich. I just bought bank stocks and sold my Home Depot shares cause I know the big one is coming. I love my old banking buddies. Love, Warren Warren Buffett is nothing but a New World Order NeoConservative.

November 17 2010 at 10:56 PM Report abuse +1 rate up rate down Reply
wlpdcp

Buffett is 100% right on this one. That TARP money stabilized an economy on the brink and is being paid back with interest. That's more than can be said for Obama's horribly expensive scatter-shot "stimulus" gift to the public service and teacher unions and his other political buddies. Imagine where we'd be today if that money had been targetted at creating permanent private-sector jobs. And now he's given us another huge entitlement program -- Obamacar -- that is going to be like a suffocating blanket on the private sector. Geeze...do we ever learn?

November 17 2010 at 9:11 PM Report abuse -1 rate up rate down Reply
1 reply to wlpdcp's comment
enpassant44

It's only because of the Democrats that we made money on the TARP. Bush and Paulson were going to make it a giveaway. Democrats insisted on making it a stock purchase.

November 18 2010 at 12:55 AM Report abuse +1 rate up rate down Reply
mmonrau

Warren Buffets article was very intelligent and understanding of what the people in charge had to go through to pull the economy out of the big chasm it was falling into. However he wrote as if President Obama did nothing when he was in the middle of the bailout and his work saved us at least as much as the others that he mentioned. I guess he voted for the tea party and listens to Glenn Beck and Hannity too much to see the president clearly.

November 17 2010 at 8:27 PM Report abuse rate up rate down Reply
1 reply to mmonrau's comment
enpassant44

I don't think so. He commends Obama's appointees, Geithner and Bair, and Bernanke, who Obama kept on as chairman of the Federal Reserve.

November 18 2010 at 1:07 AM Report abuse +1 rate up rate down Reply
prn13norm

Buffett,Soros, Immelt, Gates and the rest of the ultra rich who supported Obama have made out like bandits during this Great Recession. While those of us in the middle class have struggled with unemployment, underemployment and losing our homes. The Liberal Democrats are always trying to tie the Republicans to the wealthy however we now see that the really big money trial leads directly to the elitist Democrats!

November 17 2010 at 6:51 PM Report abuse +7 rate up rate down Reply
jlarge5396

Love these quotes side by side. "My friends, we live in the greatest nation in the history of the world. I hope you'll join with me, as we change it."-- Barack Obama ''Life's tough, pilgrim, and it's even tougher if you're stupid.''-- John Wayne

November 17 2010 at 6:29 PM Report abuse +6 rate up rate down Reply
mimsysc

Thank the little kids who will be stuck with this debt and even more wasteful spending from this admin. Did ya notice a billionaire is happy about this, he had no money worries,,, as for the real people, we are screwed.

November 17 2010 at 6:21 PM Report abuse +10 rate up rate down Reply
1 reply to mimsysc's comment
trblhnds

Ever hear of that song " The rich get richer and the poor get poorer " That is what is happening right now. Our middle class has been successfully destroyed. It is a tragedy to our American way of life. Too many people are suffering. Our legislators need to fix this in whatever way they are able. America needs to wake up and realize how serious of a situation we are in. If we are going to be the greatest country in the world we are going to have to try some new strategies that will help get people back to work.

November 18 2010 at 6:28 AM Report abuse rate up rate down Reply
blano54

alan 5:52 PM Nov 17, 2010 * (1) vote this comment up * (1) * TJD I would like to add your statement to my blog site. What a wonderful way of explaining Capatilism. Thank You I would need your permission.*******just google Capitalism, that's where TJ Lifted it from. Wikipedia. See full article from DailyFinance: http://srph.it/cLBVOa

November 17 2010 at 6:09 PM Report abuse +1 rate up rate down Reply