Buffett Says Banks Cleared of Excess Risk Pose No Threat to U.S.

Traders have been relying on the Bernanke Put for years since the financial crisis reared its ugly head. Now we have the Warren Buffett guarantee that banks won't implode global financial markets.  Both signal the Fed ginning up the printing press.  This isn't a bold statement on Buffett's part--he's a big investor in Wells Fargo, Bank of America, and Goldman Sachs.  They've been given cheap money (zero interest rate loans), free money (bailouts), and mortgage-related shenanigans have been prosecuted with slaps on the wrists (billion dollar fines).  Balance sheets have been recapitalized.

So yeah, their solvency has been restored--as long as one doesn't account for shadow assets mispriced to reflect un-reality.  Meanwhile, Buffett's vote of confidence has coincided with the USDollar tanking--while gold and silver rise in tandem.  That's the same gold which Buffett has denigrated as worthless, and the same silver that Buffett profited from in the 1990's.

The song "Money For Nothing" by Dire Straits comes to mind.

The old man is talking his book, and that's probably worth several billion in market capitalization right there.  The extend and pretend crowd can certainly delay the implosion of the bond market and currency crisis.  See Japan.

And I certainly wouldn't bet against the octogenarian.  At least not yet.

http://www.bloomberg.com/news/2013-01-10/buffett-says-banks-cleared-of-excess-risk-pose-no-threat-to-u-s-.html