Vinny’s Blog

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OK so I have been absent for a while. After all it’s summer. I went out for a few short vacation trips here and there (after all we need to support the economy). Then there were guests from overseas and all the photos and videos I took during my short trips they all were to be organized. While I was organizing my memories on digital media my computer gave some hick ups so I landed up ordering some hardware backup devices and software……you get the point…I was busy…

Anyway, I am back for now and so back to our topic….Greenshoots or not….?

I already made a post on GreenShoots before and Like I mentioned in my earlier post that I was going to cover this Greenshoot thingy sector by sector and I started to do so because after reading all the news in the media I somehow did not believe there were Greenshoots. It actually looked to another futile effort to prop up the moral of public.

Anyway, who am I, I am no pundit I don’t even have a degree in finance, those who did see Green thingy they do have a degree in finance. So when my views don’t match up with them it’s not a fair game. So I have to constantly seek news, articles on the web from credible people to make up a good, solid, valid counter argument.

I can continue with my coverage sector by sector or I can stop right here, right now you may ask why ? because the biggest news that dis-credits this green thingy theory has already made it through the press. None other but Mr. Warren Buffet has come out openely and said there are no greenshoots on the contrary economy will require MORE MEDICINE you heard it right..that TARP, TALF and every other package put together has failed and MORE yes MORE money is required to bail out this economy.

As always I have all the right news with references for you righ here…..

Greenshoots and buffett.
Jun 24, 2009, 12:07 p.m. EST
Buffett says he has trouble seeing ‘green shoots’
By Alistair Barr
SAN FRANCISCO (MarketWatch) — Berkshire Hathaway Chairman Warren Buffett told CNBC Wednesday that he has trouble seeing so-called green shoots of economic recovery in the U.S. The risk of a collapse in the financial system has past, but “we haven’t got the economy moving again,” he explained. When asked whether Ben Bernanke should be re-appointed as Federal Reserve Chairman, Buffett said “I don’t see how you could do better.” He also said the stock market is attractive versus other types of investments over a long-term period such as 10 years. Fixed-dollar investments will be eaten away by inflation over the long term, Buffett added. “We could see a lot of inflation,” Buffett warned.

Well not only he has trouble seeing Greenshoots but as it turn out that economy may require another…yes another stimulus package….now that’s intersting. Because as per Feds and some of my friends that I talk with already believe that we are out of recession and in world’s greatest economy all is well. After all it’s America, seems like they have a direct challange to their logic and understanding from Mr. Buffet. So..hold on to your $%^# and read ahead………..

Buffett Says U.S. May Need a Second Stimulus Package (Update2)
By Andrew Frye, Betty Liu and Erik Holm
June 24 (Bloomberg) — Billionaire investor Warren Buffett said the U.S. may need a second economic stimulus package as unemployment is poised to continue rising.

“It looks like we’re going to need more medicine, not less,” Buffett said today in a Bloomberg Television interview. “We’re going to have more unemployment. The recovery really hasn’t got going.” Buffett is chairman and chief executive officer of Omaha, Nebraska-based Berkshire Hathaway Inc. President Barack Obama signed a $787 billion stimulus bill in February, which included tax cuts and spending on infrastructure projects intended to save or create 3.5 million jobs. The Federal Reserve, under Chairman Ben S. Bernanke, has doubled its balance sheet to help thaw credit markets.

In the first quarter, the U.S. gross domestic product plunged, and Berkshire reported its first loss since 2001.

The economic rebound “will be a slow process,” said Buffett, who predicted the joblessness rate will exceed 10 percent. The economy “hasn’t turned yet. There’s no telling how long it will take. It will happen.”

And here is link to a video in case you want to see Mr. Buffett talking. He called the efforts so far as 1/2 a tablet of Viagra with bunch of candy mixed together.

…and how do you know what Mr. Buffet said is correct…..well this is how you know.

Obama Adviser Says U.S. Should Mull Second Stimulus (Update2)
By Shamim Adam

July 7 (Bloomberg) — The U.S. should consider drafting a second stimulus package focusing on infrastructure projects because the $787 billion approved in February was “a bit too small,” said Laura Tyson, an adviser to President Barack Obama.

The current plan “will have a positive effect, but the real economy is a sicker patient,” Tyson said in a speech in Singapore today. The package will have a more pronounced impact in the third and fourth quarters, she added, stressing that she was speaking for herself and not the administration.

Tyson’s comments contrast with remarks made two days ago by Vice President Joe Biden and fellow Obama adviser Austan Goolsbee, who said it was premature to discuss crafting another stimulus because the current measures have yet to fully take effect. The government is facing criticism that the first package was rolled out too slowly and failed to stop unemployment from soaring to the highest in almost 26 years.

So you see it does not require me to cover all those sectors in detail one by one now as this is the biggest coverage you got right here. Now you know that Greenshoots was big baloney.

But for those who are detail oriented and would like me to cover each sector I will go on covering them……These are the next few I would cover in this post and remaining in the last one.

5. Manufacturing (…. published 07/12/09…)
6. Bonds/Currency (…. published 07/12/09…)
7. Inflation (…. published 07/12/09…)
8. Housing (…. published 07/12/09…)
9. Pensions (…. published 07/12/09…)

Detail coverage on sectors that I published before were…you could read them by clicking the links given below.

1. Banking. ( Published 06/11/09)
2. FDIC      ( Published 06/11/09)
3. Commercial Mortgage ( Published 06/11/09)
4. Transport (Airline/Trucking/Rail) (Published 06/11/09)

Disclaimer¹

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