Douwe Osinga's Blog: Taking from the poor, giving to the rich

Wednesday, October 8, 2008

Taking from the poor, giving to the rich

Desperate times call for desperate measures and in the 700 Billion dollars to bail out Wall Street certainly falls in that category. The question is whether it will help and the signs aren't so good so far.

A big problem with the whole thing is that the people that get the 700 Billion seem more like part of what went wrong than part of what is right. The guy running the rescue operation made 700 million while at an investment bank.

So I have an alternative plan: give the whole load of money to Warren Buffet. 10% of all the profits he makes with the 700 billion Warren can keep and 1% of any losses he should make, he'd have to cough up himself. Obviously the deal of a life time for mr Buffet, but then again, he has advanced in his life time quite a bit and has promised to donate his money to good will after he dies anyway.

Warren Buffet has a much better track record when it comes to picking winners when investing than the government (duh, I might add). Our chances to see back the 700 billion are just much better with him than with Bush & co. More over since he is quite rich himself, he has a nicely vested interest in rescuing the world economy if for no other reason than that is also his money on the line.

Ultimately I think that just making him king of the world economy would calm down nerves enough to restore sanity to the markets.