Did Warren Buffett's Father Just Turn Over In His Grave?

Tyler Durden's picture

Historically, Warren Buffett has seemingly disagreed with his father Howard who called for "a return to a gold standard" and knew the great Austrian economic school economist Murray Rothbard. However, we suspect his recent startlingly crony-laden comments on Tim Geithner's new book would have made his dad roll over his grave... "Sensational... Tim's book will forever be the definitive work on what causes financial panics and what must be done to stem them when they occur."

 

As Economic Policy Journal asks rhetorically, How much of a crony has Warren Buffett become?

He is quoted on the back of Tim Geithner's new book, Stress Test: Reflections on Financial Crises:

 

Sensational...Tim's book will forever be the definitive work on what causes financial panics and what must be done to stem them when they occur.

 

Buffett's father, Howard, who knew the great Austrian school economist, Murray Rothbard, must be turning over in his grave.

 

In the quote above, Buffett is not only discounting Austrian school business cycle theory but even Keynesianism, for an alleged-theory by the total crony Tim Geithner.

 

Let it not be forgotten that just days after Buffett invested $5 billion in Goldman Sachs, the Treasury announced that it would bailout Goldman and other top tier Wall Street investment banks. Buffett made a killing in Goldman stock as a  result of the bailout.

So, would Buffett have put $5 billion in Goldman if he wasn't tipped off that a bailout was coming? But of course he would, bath or no bath.

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Arius's picture

exactly!

what ever happened to that guy? he seemed well plagued in london connection and all that ...

no doubt poor Ruth was so upset;  she must have known how the game works and upset for being picked on

NotApplicable's picture

I'd say it's just a misquote. Here's how it should've read.

"Tim's work will forever be the definitive cause of financial panics."

+infinity for props to Rothbard. Other than his meddling in politics in the hopes that both "sides" would destroy each other, the man is my intellectual hero.

spastic_colon's picture

me thinks he doth protest too little..........ya think he may own the publisher?

whstlblwr's picture

Did Buffett also write how tax-cheat Geithner's peg as Treas Sec slapped in our face the misconduct and cronyism of the status quo.

CrashisOptimistic's picture

Tyler, heads up, most important story of the year.

http://www.latimes.com/business/la-fi-oil-20140521-story.html

Federal energy authorities have slashed by 96% the estimated amount of recoverable oil buried in California's vast Monterey Shale deposits, deflating its potential as a national "black gold mine" of petroleum.

thamnosma's picture

Like I would ever believe a word uttered by any agency under the control of the Obama Regime.

Liquid Courage's picture

 

 

Evil Eye for the Truck Guy

Canary on the fault-line, workin’ a slick line,
We’ll crack this baby open, ‘cause it’s a money mine,
Don’t worry ‘bout those tremors, nuthin’ ventured, nuthin’ gained,
To tempt the fate of half the State, you might think is hare-brained, but ...

We’ve all got to sacrifice to keep those wheels a-turnin’,
She all grinds to a halt, if there’s no oil for burnin’,
So what’s it to a Truck Guy if the ocean takes LA?
Don’t give a damn ‘cause he’s not goin’ there anyway.

So screw LA,
And San Fran too,
I got to have my fix,
Of that black, sweet sticky goo,
‘Cause I’m a Truck Guy!

Etc...

Skin666's picture

And free John Corzine damnit!

kchrisc's picture

Madoff will be released sometime in the next year do to "failing health."

Mark my words.

813kml's picture

Bernie should have been made FED chairman years ago, he knows how to properly manage a Ponzi.

Againstthelie's picture

He duped the tribe.

Therefore his son was punished and he rots in jail.

doctor10's picture

In other words-the NSA has sent each a copy of the others file-and let them know they're expected to play nice in public.

Jumbotron's picture

Just die already Buffet.

On second thought....let me kill you just a wee bit....the only way I know how....and transfer my auto insurance from Geico to another company.

Won't mean a thing.....but we all do what we must....when we can.

WelfareFTW's picture

I for one want him to live long... well long enough to see his ill gotten stawk wealth evaporate into nothing when the reset comes. Then I want him to die of heartbreak.

Vampyroteuthis infernalis's picture

Warren Buffet also touts that he was just raised in an average middle class house when his father was a US house Rep. Ha!

NDXTrader's picture

That does make it easier to raise money from dentists in your early 20s. Assuming you buy that official propaganda

aVileRat's picture

Yeah, he was a house rep but if you have read Snowball (or check a few sources) his family was wiped out in the depression, twice. Buddy had his family name and thats about it when he started around 16. 

Howard was an outcast and lost his seat, and failed in a prez. bid, and ran a failed brokerage. Family was pretty tapped out.

Just setting the record straight. What he did early on was good for financial empowerment & investor education.

 

Gaius Frakkin' Baltar's picture

A family name in politics goes a long way.

aVileRat's picture

It does, but it did not really help him as a social pariah in Omaha if you read his unvarnished history. They had a family grocery store franchise which was pushed to the brink to get him started off with a small investment pool.

Not defending WB, because he has Loomis for that (and Charlie) but the guy was a product of his upbringing. He admits he had a bad experience with what being a goldbug brought the US economy, as seen being in a dustbowl town where payables days streched into years.

Depression shaped his view, and he was (and is) convinced that the emergency backstop of a large free cash flow machine should only be used when you need to reboot the credit cycle. He often views his legacy to that of a "pure" JP Morgan, who in his view was a hero for his work in rebooting the cycle in 1932/33.

2008 and 1987 however he made a hard call where do you support the existing system, or do like JPM and buy the dip. At the end, I suspect having everyone from Bush to Whitehall giving you flashbacks to 1931 may have forced his hand a bit. Or so the biography claims.

So whatev. Does not excuse the situation, but gives context.

 

JRobby's picture

JEB 2016

(lets see how fucking stupid they really are.....)

Kaiser Sousa's picture

"I warn you that politicians of both parties will oppose the restoration of gold, although they may outwardly seemingly favor it.

Also those elements here and abroad who are getting rich from the continued American inflation will oppose a return to sound money. You must be prepared to meet their opposition intelligently and vigorously. They have had 15 years of unbroken victory.

But, unless you are willing to surrender your children and your country to galloping inflation, war and slavery, then this cause demands your support. For if human liberty is to survive in America, we must win the battle to restore honest money.

There is no more important challenge facing us than this issue -- the restoration of your freedom to secure gold in exchange for the fruits of your labors."

Howard Buffet

Shizzmoney's picture

When will the Grim Reaper visit this old geezer already so I don;t have to keep hearing about this sycophantic bullshit?

NotApplicable's picture

Don't worry. It will only get worse after he passes, as he will be painted as a saint.

TheFourthStooge-ing's picture

.

Don't worry. It will only get worse after he passes, as he will be painted as a saint.

I'd find it amusing if he lived just long enough to see his fortune wiped out completely. However, each morning brings him one day closer to the day he soils his diaper in the playpen for the last time.

Yes, he'll be painted as a saint, and everyone will pretend to agree. Fortunately, though, he has sealed his legacy with this comment:

"Tim's book will forever be the definitive work on what causes financial panics and what must be done to stem them when they occur."

Warren Buffett will forever be the definitive embodiment of the guy who licked the ass of Timmah "The Rat" Jeethner.

ChickenTrain's picture

That MickeyD's for lunch everyday is clearly the tonic spouting out of the fountain of youth. 

F22's picture

Can we just chalk it up to senility??

Chippewa Partners's picture

Obama says Warren wears ugly ties.

Most Nebraskans know how to use a nail gun.   Timmy should stay out.

madcows's picture

how much did they pay him for the quote?

ChickenTrain's picture

What else would he be expected to say?? Just look where his bread is buttered! 

Dr. Engali's picture

Speaking of graves.... Isn't Warren way past due?

Pairadimes's picture

Warren Buffett is a perfect example of what happens when a lucky man becomes powerful. He starts to believe his own bullshit.

ptoemmes's picture

Yes, people like Tim Geithner and Warren Buffet are what causes financial panics and not letting people like them in the room when they do occur is perhaps the best way to deal with them.

JustObserving's picture

Warren Buffett has always  been a consummate insider.  He knew that the Federal government was about to bail out Goldman Sachs and he used that information to add a few billion to his portfolio.

The sage of Omaha is actually the swindler of Omaha.

 

DOGGONE's picture

The establishment are CONPERSONS first ... look at what they keep out of sight:
http://www.showrealhist.com/yTRIAL.html

ebworthen's picture

The cartoon with the dollar bills flying around him say it all.

Buffet stands for nothing but abject greed; his entire persona is about money.

To Hell with the poor or the law, morals, ethics, or right and wrong.

10mm's picture

Yep, taking all to the grave.

John Law Lives's picture

He is also an outspoken advocate of an onerous Federal Estate Tax.  He believes Uncle Sam should reap a significant chunk the harvest upon the deaths of those who produced it.  Revolting.

Oracle_FUBAR.

Frank N. Beans's picture

Good to see such vitriol isn't reserved only for tribe members.

fair and balanced

 

Kaiser Sousa's picture

i want every one of ya'll to take the time to view this revelation on Warren fucking Bitch ass Buffet...

https://www.youtube.com/watch?v=gJYLmDbIV9s

NotApplicable's picture

I liked the part where Napalitano talked about Geithner's criminality concerning AIG.

kchrisc's picture

I sure would like to know what they are holding over Buffet's head.

Did he get caught acting like a Catholic priest of something?!

SanfordandSon's picture

Nothing over his head, it's all going into his bank account...

Liquid Courage's picture

Yeah. Somewhere between "derivatives are financial weapons of mass destruction" and TARP ... Warren got tapped ... somehow or other.

Oldrepublic's picture

Howard Buffet's prescient quote:

 

Even if it were desirable, America is not strong enough to police the world by military force. If that attempt is made, the blessings of liberty will be replaced by coercion and tyranny at home. Our Christian ideals cannot be exported to other lands by dollars and guns. Persuasion and example are the methods taught by the Carpenter of Nazareth, and if we believe in Christianity we should try to advance our ideals by his methods. We cannot practice might and force abroad and retain freedom at home. We cannot talk world cooperation and practice power politics