Stocks Break Lower; Buffett's Bad Bet?

S&P futures down 20, Dow off about 150.

Warren Buffett Got a Bailout? $95 BILLION Worth!

Worse still, $7 billion went into his personal pocket!

Hint From Buffett: Prepare for Inflation!

BREAKING! Not every major investment guru is walking further out on the yield curve in a bet on deflation.
Bloomberg:

Twenty-one percent of holdings including Treasuries, municipal debt, foreign-government securities and corporate bonds were due in one year or less as of June 30, Omaha, Nebraska-based Berkshire said in a filing Aug. 6. That compares with 18 percent on March 31, and 16 percent at the end of last year’s second quarter.

The report goes on to speculate that this may be a reaction to heightened inflation expectation, which would be in violent disagreement with the cool-kid investors these days, who are almost uniformly deflationistas these days.
But Buffett has maintained a fairly standard-issue stance on the subject.
Back to Bloomberg:

Buffett, 79, urged Congress last year to guard against inflation as the U.S. economy returned to growth. In an August 2009 op-ed in the New York Times, the Berkshire chief executive officer said government must address the “monetary medicine” that was pumped into the financial system after the 2008 crisis.

“The United States is spewing a potentially damaging substance into our economy -- greenback emissions,” Buffett wrote. “Unchecked greenback emissions will certainly cause the purchasing power of currency to melt.” Buffett didn’t return a message for comment left with an assistant.

For what it's worth, Buffett may have other ideas in mind, including a move towards liquidity and stability, and if he's made a ton of money betting on long-bonds, then it makes sense to take something off the table. Still, it's an interesting shift.

Read more: http://www.businessinsider.com/buffett-shortens-bond-portfolio-duration-2010-8#ixzz0wE6JV23f

...But Warren Buffett Disagrees, Sees More Inflation Ahead!

This morning, CNBC viewers were treated with a three-hour visit by Warren Buffett and many nuggets of his monetary wisdom. While I am personally not a fan of Buffett's atheism (he's not willing to pay the price to know what the rest of us have paid the price to know), I admire his brilliant financial mind and his great wit and humor. His wisdom, common sense, and gift for humor are a joy to listen to. I can't help but like the guy, as long as I keep my admiration to only those subjects for which he has proven himself worthy of respect. Politics is not one of those areas!

He said that the surge earlier this year of commodity prices is only beginning to be reflected in retail prices that must eventually be passed onto the end consumer. He gave examples from the businesses in his empire, and said that their margins have been squeezed so tightly that they have been forced to increase prices repeatedly to their retail dealers. He said that they have been forced to increase prices again and again, sometimes in rapid succession. He also said that the price increases have only just begun, and that much more -- and many more -- substantial price increases are coming. Inflation is not dead! It is not under control! Take it from a man who should know -- Warren Buffett!

Oil Reaches $135

Good Grief! Oil rose more than $4 yesterday alone!

Interesting that Warren Buffett stated today in Europe that he personally doesn't believe that speculation is driving the price of oil higher, but that the high cost of oil is being driven by classic demand and supply concerns.