Monday, April 26, 2010

Mr. Buffett; Meet Mr. Obama

Warren Buffett is lobbying fiercely to exempt his own firm, Berkshire Hathaway, from the absurd provisions of the new financial regulatory reform bill, now circulating through the US Senate. What Buffett objects to in the bill is the provision that will make existing derivative contracts provide the ridiculous levels of collateral that will be required under the law. As Buffett notes, "legitimate hedgers" will be penalized.

What Buffett doesn't seem to understand is that no one really knows who the "legitimate hedgers" actually are.

Buffett's firm has $ 60 billion in derivative contracts in place (why is this a surprise...they are an insurance company after all). Buffett, who has been one of the nation's greatest critics of other people's use of derivatives, seems to think what is good for the goose is not good for the gander. Buffett thinks he should play by his own set of rules. Such hubris!.

Lets hope that Buffett loses in his effort to carve out another Nebraska "Cornhusker" provision for himself. Buffett has been a cheerleader for the Obama stranglehold on this country. He should pay the same price as everyone else and play by the same rules as everyone else.

Welcome, Warren, to the new ObamaWorld.