lowercase thought.
Wednesday, June 27, 2007
Warren Buffet for Fed Chairman?
In late 2005 when Ben Bernanke was being offered up as a replacement for outgoing Federal Reserve Chairman Alan Greenspan, he was trumpeted as "the right man to build on the record Alan Greenspan has established"--as though that were such a great thing. In hindsight, Greenspan could have done much more in the way of using his public soapbox to pressure public policymakers into making the tough fiscal choices needed in order to right the ship of our current financial state.
With that in mind, let me make a suggestion to the next President of the United States, whom we can assume will be a Democrat given on-going polling trends, the downward spiral in Iraq, and the uninspiring cast of Republican candidates. In 2010, at the end of Bernanke's first term as Chairman, replace him with Warren Buffett. I realize that Buffett would likely not want the position, given that he'd have to give up his post at the helm of Berkshire Hathaway. But you know, a man can dream.
Here's why: The "Oracle of Omaha" is perhaps the most intuitive mind alive in the United States when it comes to finance. Most investors would give their right testicle (or ovary, to be fair) just to have lunch with the guy in order to pick his brain, and his public comments regularly send large sums of money flowing at the drop of a syllable. Instead of convincing fund managers to get off their asses and make a move, perhaps it would be nice to have members of Congress or the Administration perking up to hear Buffett's sagacity.
Case in point--Buffett has been an outspoken critic among his corporate peers in spotlighting the idiocy of Republican efforts to cut the dividend tax rate, and has once again stated his disbelief in the unfairness of our current tax system.
Buffett has hit the nail on the head. For all the bitching an moaning conservatives do about how overtaxed the rich are, the facts simply don't back it up. Despite this, we're supposed to make sacrifices in Social Security and Medicare, which benefit the poorest among our senior population, in order to balance the books. Just don't touch the Defense budget or record oil profits.
So do us all a favor, President Obama. Call Warren Buffett and ask him if he's willing to serve his country in a way that is perhaps even more selfless than the billions he's already given away in charity. Ask him to wield his wisdom as a big stick. Ask him to be the Fed Chairman.
With that in mind, let me make a suggestion to the next President of the United States, whom we can assume will be a Democrat given on-going polling trends, the downward spiral in Iraq, and the uninspiring cast of Republican candidates. In 2010, at the end of Bernanke's first term as Chairman, replace him with Warren Buffett. I realize that Buffett would likely not want the position, given that he'd have to give up his post at the helm of Berkshire Hathaway. But you know, a man can dream.Here's why: The "Oracle of Omaha" is perhaps the most intuitive mind alive in the United States when it comes to finance. Most investors would give their right testicle (or ovary, to be fair) just to have lunch with the guy in order to pick his brain, and his public comments regularly send large sums of money flowing at the drop of a syllable. Instead of convincing fund managers to get off their asses and make a move, perhaps it would be nice to have members of Congress or the Administration perking up to hear Buffett's sagacity.
Case in point--Buffett has been an outspoken critic among his corporate peers in spotlighting the idiocy of Republican efforts to cut the dividend tax rate, and has once again stated his disbelief in the unfairness of our current tax system.
Buffett said he makes $46 million a year in income and is only taxed at a 17.7 percent rate on his federal income taxes. By contrast, those who work for him, and make considerably less, pay on average about 32.9 percent in taxes - with the highest rate being 39.7 percent.
To emphasize his point, Buffett offered $1 million to the audience member who could show that one of the nation's wealthiest individuals pays a higher tax rate than one of their subordinates.
"I'm willing to bet anyone in this room $1 million that those rates are less than the secretary has to pay," said Buffett.
Buffett has hit the nail on the head. For all the bitching an moaning conservatives do about how overtaxed the rich are, the facts simply don't back it up. Despite this, we're supposed to make sacrifices in Social Security and Medicare, which benefit the poorest among our senior population, in order to balance the books. Just don't touch the Defense budget or record oil profits.
So do us all a favor, President Obama. Call Warren Buffett and ask him if he's willing to serve his country in a way that is perhaps even more selfless than the billions he's already given away in charity. Ask him to wield his wisdom as a big stick. Ask him to be the Fed Chairman.
Docciavelli 1:39 PM