Monday, March 1, 2010

Questions for Mr. Buffett

I notice Warren Buffett is on CNBC this morning with his interviewer of choice Becky Quick. Yes, readers I will leave that issue all alone as I have said enough on it previously. But since Mr. Buffett is taking questions this morning from the peanut gallery this idiot , fringe blogger has a couple of em' for the oracle.

Two Questions from Lansing, Michigan Mr. Buffett and please excuse my lack of homage and diefication that you are so accustomed to receiving from your darling hostess from CNBC.

1) Mr. Buffett do you remember the movie A Few Good Men ? (hint Jack Nicholson played the fantastic Col. Nathan Jessop) I ask this because your statement today that "the finances of U.S. States and Municipalities have deteriorated dramatically" directly contradicts one's belief that an economic recovery is under way.

Just as Col. Jessop in the movie was asked under oath why
if Sanitago was ordered to not be touched, and your orders are always followed, was Santiago to be shipped off the base?

Why then are state and muni finances deteriorating if the economy is improving? How is it then one is to credibly believe that the economy is recovering in the slightest given their dependence on tax revenues?

2) Mr. Buffett - regarding your comments about shorting and to not do it, instead just buying companies that would prosper if the exchange closed for years. If one had this foresight to buy, lets say Citibank ticker C, say about 10 years ago at the (right?) price of then $25 and the stock exchange had in fact been closed since then as you suggested - how do you reconcile this lack of prosperity with Citi now at $3.50?

If you prefer Mr. Buffett you can insert any other name in there if Citi is too tough an example. Ford, GE, Merrill Lynch or any other, go ahead take your pick.

Good speculating to you all and please remember to never forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Long 1 unit Direxion Large Cap 3X Bear ticker BGZ @ $19.34
Long 2 units Direxion Small Cap 3X Bear ticker TZA @ $12.06
Long 1 unit Direxion Emerging Mkts 3X Bear ticker EDZ @ $6.05
Long 2 units Direxion Financial 3X Bear ticker FAZ @ $19.65
Long 2 units Ultrashort Xinhua China ticker FXP @ $8.49
Long 1 unit Ultrashort Real Estate ticker SRS @ $9.82
Long 2 units Direxion Tech 3X Bear ticker TYP @ $10.52
Long 1 unit US Dollar Bull ticker UUP @ $22.52 stop @ $21.97

Short 1 unit Daimler ticker DAI @ $52.23 stop @ $52.23
Short 1 unit CurrncyShr Aus Dlr ticker FXA @ $89.65 stop @ $91.71

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