Actually what he really bet against were the very Obama policies he has publicly supported. Well, old Warren would never let a little hypocrisy get in the way of larger profits for Berkshire Hathaway, now would he ?. Hidden away in Berkshire's quarterly filing is a large investment where he is betting AGAINST the debt of about a dozen state and local governments, especially California and Illinois. All the bond issuers are high tax , spend and borrow big, state and local governments.
Buffet has publicly supported Obama and the expansion of the welfare state. He publicly supports higher public spending and higher taxes on the wealthy. Except himself, of course. The reason his secretary pays a higher income tax RATE than he does is becuase he pays himself $100,000 a year in SALARY to run Berkshire and pays his secretary a LOT more than that. Best of all, ( or worst depending on your pov ) is his letting Obama use his name for a new tax on millionaires and billionaires that will not raise very much money and is little more than a political ploy.( Sorry for the collateral political mention.)
As we have pointed out in this forum many , many times, Governor "Dum Dum" Brown has been raising taxes in California and investing $8 billion in a HSR boondoggle that according to the most optimistic estimates will produce few new jobs. In Illinois, Governor Quinn has raised taxes and seen the state deficit go UP as its pension fund is even more underfunded. Meanwhile, businesses and jobs have packed up and moved to ... guess where ? Indiana and especially Wisconsin.
While he hasn't publicly said anything, Buffet doesn't have to. His money is speaking volumes as he bets against Brown, Quinn and other spendthrifts.



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