Warren Buffett and the Fear

Oh come on! Can Warren Buffett be serious? Fear is what is causing the Depression?

Mr. Buffett was interviewed recently and according to the report:

Buffett said Americans are in a cycle of fear, "which leads to people not wanting to spend and not wanting to make investments, and that leads to more fear. We'll break out of it. It takes time."

Mr. Buffett is not stupid, and we certainly hope not senile. Is this then just the new Administration party line? (Just to clarify, Mr. Buffett is an adviser to the US president-elect. ) Is Mr. Obama going to serve us warmed over "We have nothing to fear but fear itself" pablum?

OK, people: the world economy is not falling apart because Mr. and Ms. Average suddenly got the heebie-jeebies. There was a massive CREDIT BUBBLE that exploded and sent trillions upon trillions of dollars, euros, pounds, and yen to money heaven. Mr. Buffett knows this, by the way, as he coined the term 'weapons of mass financial destruction' to describe banks' use of derivatives.

The world could use a little honesty here. Mr. Buffett is proving very disappointing in this department. We suspect more disappointment will follow.