Intelligent Response Is All That's Left

If you are a Warren Buffett follower, you will want to listen to this 51-minute inteview. Though most of the discussion centers around Buffett's recent call to raise taxes on the rich (see Stop Coddling the Rich), Buffett explores more including the deficit, the S&P downgrade, the economy, and the markets. He says all his 70-some businesses are doing better each quarter, except those related to the housing industry. He sees corporate America as doing fine, except those in residential real estate, which will not get better until the excess inventory drops to a million units. You will most likely agree and disagree with Buffett in this interview, perhaps even be surprised at his views, but if you follow him, it's a must hear.

Here's the famous op-ed Warren Buffett wrote claiming the rich, like him, should pay more in taxes, a now familiar complaint from the Oracle of Omaha. While he gives some statistics in the editorial, he seems to leave out how big an impact his recommended tax increase would really make in the government's deficit. It's not really as much as all the noise would make it seem. By the way, an interesting editorial in the Wall Street Journal (Warren Buffett's Tax Dodge) provides an enlightening counter-point to Buffett's op-ed.

In his usual colorful explanations, Jim Rogers shares the specific investments he is in and those he is avoiding. He explains, with an historical perspective, what he sees happening today. Agree or disagree, Rogers certainly has no doubt about his views. Listen to this one.

Jim Rogers suggests that the downgrade by S&P was really nothing new to the markets because everyone that invests already knew that Treasuries were in bad shape. He suggests the recent market "panic" was more about what was going on in Europe. Because Rogers is convinced the only thing central banks know how to do is print more money, he is invested in real assets like gold and agricultural commodities. He points out that nations need to let bad companies go bankrupt. Japan did not for the past twenty years and their stock market is "75% below what it was twenty years ago." We should not do the same thing, but that's what they're doing according to Rogers. You'll want to listen to this one.

Marc Faber suggests the Fed will move forward in the future with QE3 and even QE4. As such, he sees gold as a key long-term investment.  He recommends diversification, but today, even though he sees equities going lower, he still thinks it is the better asset category.

Though he thinks gold may currently be overpriced, nonetheless Marc Faber thinks you are irresponsible if not adding gold to your portfolio every month. With central banks primarily printing money, Faber sees gold as a long term value. Furthermore, though he thinks equities may go lower, it is a better investment than Treasuries because he expects more easing by central banks. It's worth listening to this interview.

In an interview from Thailand, Marc Faber suggested that even with the rebound on Tuesday, he expects the market to go lower. When that happens, he thinks the Fed will then implement QE3, though he thinks they were right in not announcing it this month.  And in typical Faber fashion, he said the best thing the Fed could do for the economy is to "collectively resign."

At this time Faber claims the long-term Treasuries are in a huge bubble and are the "short of the century." And finally, he says every responsible adult should increase his holding of gold over time, even though he sees a correction in gold as overdue. He gives lots of specific investment advice toward the end of this interview. You don't want to miss it.

Carl Icahn discusses what he sees as the lack of good corporate governance in America in this interview. As he is asked, he also explains why he agrees with Warren Buffett that the wealthy can and should pay more in taxes, but the taxes on corporations need to be reduced. A corporate tax, he says, is really a tax on the middle-class because they own shares through their pension funds.

"Billionaire investor Carl Icahn said Friday he intends to nominate 11 people, including himself, to replace Clorox Co.'s whole board at the company's next shareholder meeting..."

Carl Icahn explained his approach and big win with the sale of Motorola Mobility to Google. Icahn, as the largest shareholder with 11% of the shares, actively worked with the company moving it to the spin-off which led to the current sale. Interesting interview where you get to hear from Icahn himself.

As a member of Barron's Roundtable, Mario Gabelli was asked where investors should be in the midst of the current market turmoil.  Gabelli suggests that the chance for a double-dip recession has risen from 10% to 15% in his mind and he acknowledges that it is difficult to determine best allocations. He does, however, mention a couple of energy companies that look attractive following significant price drops.

Take a look at this excerpt, you may find some ideas.  Additionally, two other Market Lions, Bill Gross and Marc Faber, were interviewed as well so there is even more than Mario's comments in this article.

Bill Miller, in this complelling opinion piece, explains why S&P's downgrading of the US credit rating was "precipitous, wrong, and dangerous."  He explores the implications of S&P's action on several levels, strongly arguing they should not have downgraded the US. Whether you agree or disagree yourself, you'll want to read this easy-to-understand explanation.