O Ye Of Little Imagination

The "Oracle" of Omaha has once again demonstrated that his crystal ball doesn't work so well. According to Warren Buffet, the economic downturn is as bad as he could possibly have predicted. He follows up by saying he doesn't see how things can get any worse.

My response is simple: Warren clearly lacks imagination if he can't conceive that things can get worse (which they will).

Buffett said economic developments have been very "close to the worst case" that he had imagined,

As I've written before, the great business people of the last 60 years are getting their come-uppance now. The principals that have served them well for decades (e.g. "value" investing) just don't work in a protracted depression with crashing asset values.