"Warren Buffett on the Economy July 12 2012"
Video: Buffett on Taxation
FJ light edit of Munger (Buffett's business partners comments on - Current Investment Scene:
The Great Recession came about from a combination of megalomania (Dick Fuld/Lehman Bros cited here) + insanity + evil. Greenspan overdosed on Ayn Rand. Can’t have complete freedom where gambling is permitted. Investment bankers had a great edge (better than casinos because no overhead required for entertainers, restaurants, bars, etc.) and they didn’t want to give it up. The entire process was helped by the accounting profession who doesn’t want any serious responsibility (i.e., for a system collapse).
Munger believes the US doesn’t need this kind of financial inventiveness; it’s ok to be boring. Activities should be regulated if government is expected to extend credit.
Country is too divisive at the moment. No tax increase at all is crazy. Just let the rich pay is crazy. Need moderate taxes on broad base. Marshall Plan at end of WWII was good example where US was not vindictive. Need to tap into those kind of values again.