Salient to Investors:

Warren Buffett said:

  • The Fed is the greatest hedge fund in history because of its ability to profit from bond purchases while accumulating a balance sheet of more than $3 trillion, probably generating $80 billion or $90 billion a year in revenue for the US government, not the case a few years back.
  • The Fed is under no pressure whatsoever to deleverage so it can pick its time, though not on this scale before.
  • The next chairman should follow Bernanke’s approach to economic stimulus.
  • Dodd-Frank may limit future leaders from taking the steps that Bernanke and Paulson did in 2008 to calm markets as Congress does not like to give anybody that much authority.
  • There will be another panic from somewhere.
  • We have learned to turn out lots of goods and services, but not how to have everybody share in the bounty – nobody should get left too far behind.

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