Warren Buffett sounds warning to Washington as Berkshire reports record profit, cash

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  1. His warning:

    >But he also sent a cautionary message to Washington, lamenting how capitalism “has its faults and abuses–in certain respects more egregious now than ever,” with malfeasance by “scoundrels and promoters” in full force.

    >He urged lawmakers to help preserve a stable U.S. dollar, saying “fiscal folly” can destroy the value of paper money and the country has at times “come close to the edge.

    >”Buffett said long-term success of Berkshire and the American economy, which he called the “American miracle,” has depended on people’s ability to participate.

    >That, he said, is something Uncle Sam can encourage, or take away.

    >”Take care of the many who, for no fault of their own, get the short straws in life. They deserve better,” Buffett wrote, addressing the government.”

    >And never forget that we need you to maintain a stable currency and that result requires both wisdom and vigilance on your part,” he added.

    >Cathy Seifert, an analyst at CFRA Research who rates Berkshire “hold,” said: “Talking about the business of America being messy was his way of addressing the political landscape and its impact on the macroeconomic environment. He is warning Washington: Be careful where you tread.”

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