Bloomberg.com: “Buffett Says He Can’t See Rationale for Bank Levy”

Posted on by John at 16:08 | Be the First to Comment

Berkshire Hathaway CEO Warren Buffet appeared on Bloomberg TV yesterday, and spoke out against President Obama’s plan to tax certain financial institutions. Bloomberg quotes the Oracle of Omaha:

“I don’t see any reason why they should be paying a special tax.” Supporters of the plan to tax the banks “are trying to punish people,” he said. “I don’t see the rationale for it.” “Look at the damage Fannie and Freddie caused, and they were run by the Congress,” said Buffett. “Should they have a special tax on congressmen because they let this thing happen to Freddie and Fannie? I don’t think so.”1

Buffett held a fundraiser for Obama and advised the future president on economic issues during his campaign.

In addition to levying an additional tax on certain financial institutions, President Obama intends to impart new restrictions on banks. 2 These are two factors that explain in part why the “Dow Turns Negative for ’10.”

  1. http://www.bloomberg.com/apps/news?pid=20601087&sid=aPdhurDmpnhE&pos=1 []
  2. http://online.wsj.com/article/SB10001424052748703699204575016983630045768.html []

Nobel Political Prize

Posted on by John at 15:16 | Be the First to Comment

The deadline for nominations of the Nobel Peace Prize was February 1, just two weeks after President Obama was inaugurated as President of the United States.1  However, he managed to impress people enough in just two weeks to be nominated for the prize, as well as convince the five committee members elected by the Norwegian Parliament who determine the prize recipient, that he deserved the prize.  According to the prize founder, Alfred Nobel, the the Peace Prize should be awarded to the person who:

“during the preceding year [...] shall have done the most or the best work for fraternity between nations, for the abolition or reduction of standing armies and for the holding and promotion of peace congresses.”  ((http://en.wikipedia.org/wiki/Nobel_Peace_Prize))

It is unclear what Obama did to merit the prize.  It is also interesting why he was awarded the prize, while individuals such as Mohandas Ghandi (who led the India independence movement through non-violent opposition), Pope John-Paul II (who, inter alia, was instrumental in the fall of communism in eastern Europe), Irena Sendler (who saved 2,500 Jews during World War II), and Liu Xiabo (a human rights champion in China, who is currently in prison), were not awarded the prize for their efforts.

It seems likely based on the statement issues by the Nobel Comittee2, as well as the known political persuasion of the Nobel Committee, that this prize was given to ensure that Obama did not back out on his promises, and he follows through with his agenda.  Thus, instead of awarding the prize for accomplishments, it is instead used as a political tool to influence Obama’s policies.

Not everyone in Norway agrees with the controversial decision.  Siv Jensen, leader of Norway’s Progress Party, was quoted in the Wall Street Journal:

“It is just too soon.  It is wrong to give him the peace prize for his ambition. You should receive it for results.”  She said that the decision to bestow the award on the president was the most controversial she could remember and was one of a number that had moved the prize further away from the ideals of Alfred Nobel.3

Former Polish President Lech Walesa, who won the Nobel Peace Prize in 1983 was also quoted as stating,  ”So soon?  Too early.  He has no contribution so far,” ”He is still at an early stage.”  Bestowing this honor upon President Obama so early in his presidency is a disservice to the former Chicago Senator as well.  Awarding the prize so early, without providing the former Chicago Senator with an opportunity  to prove the impact he can make on the world, diminishes the prize to a “call to action.”  Nobel Peace Prize recipients have been controversial in the past, and the current decision affirms that the prize is not an award for accomplishment, but instead, a political tool.

  1. http://online.wsj.com/article/SB125509603349176083.html []
  2. http://nobelprize.org/nobel_prizes/peace/laureates/2009/press.html []
  3. http://online.wsj.com/article/SB125509603349176083.html []
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