Supposed Financial Genius Obama Takes Advice From is Losing Money Hand Over Fist

from Fox Business:

Warren Buffett’s Berkshire Hathaway (BRK.A) saw its profit decline 77% in the third quarter amid investment losses and declining revenue in some businesses.

Net income fell to $1.06 billion, or $682 per Class A equivalent share, from $4.55 billion, or $2,942 a share, in the same period last year.

Operating earnings per share fell to $1,335 from $1,655 a share in the three-month period a year ago, while revenue declined 6.7% to $27.93 billion.

While Berkshire saw a gain of $1.99 billion on investments and derivatives in the year-ago quarter, it took a $1.01 billion loss in the period this year amid the continuing credit crunch and overall financial crisis.

Also, the insurance business saw some losses. GEICO’s earnings before taxes and minority interests fell 27% — to $246 million from $335 million in the same period last year. The same type of earnings at Berkshire Hathaway Reinsurance Group swung to a loss of $166 million in the quarter from a $183 million profit in the same period last year.

The derivative market Buffet’s company is making money on is no more stable than the credit markets, and according to some people is ready to implode soon. Buffet is much lauded as some sort of financial genius because he made money on markets that we see now were heavily manipulated. I’m not enthused by the prospect of that kind of genius having a say in where we go from here.