HOW TO FIX OUR FEDERAL DEFICIT

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Warren Buffett, "I could end the deficit in 5 minutes," he told CNBC. "You just pass a law that says that anytime there is a deficit of more than 3% of GDP, all
sitting members of Congress are ineligible for re-election. The 26th
amendment (granting the right to vote for 18 year-olds) took only 3 months
& 8 days to be ratified! Why? Simple! The people demanded it. That was in
1971...before computers, e-mail, cell phones, etc. Of the 27 amendments to
the Constitution, seven (7) took 1 year or less to become the law of the
land...all because of public pressure.

Warren Buffet is asking each addressee to forward this email to a minimum of
twenty people on their address list; in turn ask each of those to do
likewise.
In three days, most people in The United States of America will have the
message. This is one idea that really should be passed around.

*Congressional Reform Act of 2011*

1. No Tenure / No Pension. A Congressman collects a salary while in office
and receives no pay when they are out of office.

2. Congress (past, present & future) participates in Social Security. All
funds in the Congressional retirement fund move to the Social Security
system immediately. All future funds flow into the Social Security system,
and Congress participates with the American people. It may not be used for
any other purpose.

3. Congress can purchase their own retirement plan, just as all Americans
do.

4. Congress will no longer vote themselves a pay raise. Congressional pay
will rise by the lower of CPI or 3%.

5. Congress loses their current health care system and participates in the
same health care system as the American people.

6. Congress must equally abide by all laws they impose on the American
people.

7. All contracts with past and present Congressmen are void effective 1/1/12.
The American people did not make this contract with Congressmen. Congressmen
made all these contracts for themselves. Serving in Congress is an honor,
not a career. The Founding Fathers envisioned citizen legislators, so ours
should serve their term's), then go home and back to work.

If each person contacts a minimum of twenty people then it will only take
three days for most people (in the U.S.) to receive the message. Maybe it is
time.

THIS IS HOW YOU FIX CONGRESS!!!!! If you agree with the above, pass it on.

Warren Buffet says.........

Here's what the richest man in America said about the Residential real estate market. I found this on the http://www.resultsinvestmentrealty.com/ website. Just click on their link for more great news. Credit Carisa at BIC with this blog.

Thursday, March 04, 2010

Is Warren Buffet Right about Residential Real Estate?

He's affectionately known as the Oracle of Omaha. So when billionaire investor Warren Buffett dropped a few choice words about the real estate market into his annual letter to shareholders in his company Berkshire Hathaway Inc., beleaguered homeowners across the nation did a little happy dance.

The reason was simple: Warren Buffett predicted that the protracted real estate slump would end some time in 2011. "Within a year or so, residential housing problems should largely behind us," he wrote on February 27 in his letter. "Prices will remain far below 'bubble' levels, of course, but for every seller or lender hurt by this there will be a buyer who benefits."

While Buffett built his empire by betting on industries and companies he felt were undervalued, he has also made a few bad bets, as well. Indeed, reading between the lines of his investor's letter, hopeful housing watchers might proceed with caution.

Buffett, who was named the richest person in the world in 2008 by Forbes magazine with $62 billion, has a personal interest in seeing the residential real estate market recover. Berkshire Hathaway owns a real estate brokerage, a pre-fabricated home manufacturer, and other makers of products used to build homes. All of these investments were hammered during the housing crisis of the past two years. Clayton Homes, the pre-fab home company, saw its profits before taxes drop 9 percent last year.

In his letter, Buffett was frank about the dim prospects for new construction. "People thought it was good news a few years back when housing starts -- the supply side of the picture -- were running about 2 million annually," he wrote. "But household formations -- the demand side -- only amounted to about 1.2 million." With characteristic humor, Buffett said the only ways to correct that imbalance were for the U.S. to "blow up a lot of houses," "speed up householder formations by, say, encouraging teenagers to cohabitate," or to pull back on home construction.

Buffett's point is that housing values are at historic lows, which will induce more home shoppers to become buyers. But the troubles of the hundreds of thousands of people who owe more on their mortgages than their homes are worth won't be solved by a slight uptick in sales.

Buffett has always prided himself on investing when other investors are running scared. Last year's purchase of Burlington Northern Santa Fe Railroad is a good example. But Buffett's purchases of reinsurance firm General Re and corporate jet company NetJets both resulted huge losses. But this is a strategy available mostly to people with deep pockets, who can afford to make a mistake once in a while.

The key to the housing market, as Buffett would likely agree, is timing. Buy low and sell high works in any market. Just as Buffett did: He still lives in the same 5-bedroom stucco house he bought in Omaha, left, in 1958 for $31,500. Of course, it's now worth an estimated $700,000. That's appreciation we can relate to.