And I'm not talking about his decision to maintain his selling view on the U.S. dollar. That is indeed a sound investment decision, what with the growing U.S. deficits, both trade and budget. Myself and a number of other currency traders were betting against the greenback way back when, when the trade gap war around $40 bln. Now, with the goods and services gap being around $60 bln, Buffett's bet seem reasonable.
I am refering to his comments during Berkshire's recent shareholders' meeting, where he provided support for Hank Greenberge, the embattled ex-president and CEO of AIG. Mind you, the support came in the form of praise for Greenberg's ability to transfor AIG into the leading insurance company in the "property casualty business". But, at the same time one wonders what did Buffett say to the regulators (i.e. Elliot Spitzer) about AIG and Gen Re that started this whole thing off. Did a deal take place between Spitzer and Buffett, whereby in order to save Gen Re, Buffet would have to deliver AIG on a silver platter? We can only make suppositions and wait to see how General Re will fare at the end of Spitzer's investigation.
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