Wednesday, August 19, 2009

Buffet: Thanks for saving my ass, now tighten

Warren worries about the Greenback effect of too much stimulus. Says the worry now is too much inflation.

One can never fail to notice that the urge to tighten always comes when the participant has been saved. This link details how Warren Buffet profited from the bailout. And Dean Baker points out that inflation hurts Buffet enterprises. Expect to hear from PIMCO and the rest of the welfare ridden financial sector as they try to stop the stimulus once their sector is saved.

Inflation is traveling down the yield curve. When one inflated sector cashes in, then they want the inflation bubble stopped. This moral hazard is the reason the wealthy can expect a large tax hike in the future.

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