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Milton J. Madison - An American Refugee Now Living in China, Where Liberty is Ascending

Federalism, Free Markets and the Liberty To Let One's Mind Wander. I Am Very Worried About the Fate of Liberty in the USA, Where Government is Taking people's Lives ____________________________________________________________________________________________ "Extremism in defense of liberty is no vice. Tolerance in the face of tyranny is no virtue." -Barry Goldwater-

Thursday, June 25, 2009

Quote of the day.....

BUFFETT: Well, it's been pretty flat. I get figures on 70-odd businesses, a lot of them daily. Everything that I see about the economy is that we've had no bounce. The financial system was really where the crisis was last September and October, and that's been surmounted and that's enormously important. But in terms of the economy coming back, it takes a while. There were a lot of excesses to be wrung out and that process is still underway and it looks to me like it will be underway for quite a while. In the (Berkshire Hathaway) annual report I said the economy would be in a shambles this year and probably well beyond. I'm afraid that's true.
From here.

The bottom line is that businesses will respond to the real economy and the actual economic situation. Also, recognize that some businesses will benefit from the horrendously misguided $787 billion economic stimulus rushed through by the Obamessiah and his Renfield minions, the Democrats. But these ephemeral benefits since they are government mandated and not necessarily based upon actual economic need but many times are political in nature, will not be as productive as the investments that could have been made with the capital that was diverted away from the real economy through government borrowing or taxes.

So, Buffet's businesses and many others are paying the price of the higher taxes or crowding out of borrowing either directly or from their customers and their long-term expectations. So what companies are going to invest in expanding their businesses and increasing employment if it is unclear that it will pay off from an economic standpoint or if they will be able reap the benefits of this expansion and risk taking if it will be seized through the upcoming hostile tax regime?

It will take a long long time for the USA to bounce back as long as Marxists are in change.

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