Charlie Munger's insane, ignorant and illogical "cultural theory of keynesian intervention efficacy" about 4 and a half minutes in. Oh and then right after that he calls Krugman "one of the smartest people we have". He "has no problem with the Federal Reserve System" and that Greenspan "overdosed on Ayn Rand" (has the great polymath ever READ Ayn Rand? I don't remember Ayn Rand ever writing in favor of a central bank induced economic boom?
Munger and Buffett have gone completely bats. Conant is 100% correct in his comments about Munger.The U.S. is going directly down the same road as Greece, as is Germany, China etc. Keynesian economic policy doesn't work anywhere. If you print money and cause a manipulated boom, there will be consequences to pay. The consequences will be more painful the more socialist in thinking a population already is, but every country that buys into the mad economics of John Maynard Keynes is stuck having to pay the Keynesian check on the downside of the Keynesian created business cycle.
As for Krugman being "one of the smartest people we have". I'd like to see Munger turn over a chunk of his portfolio for Krugman to manage, based on Krugman's concern of developing deflation.
Finally as far as Ayn Rand goes, she was not an economist. Indeed, she didn't even understand how the government propped up the banking system:
I became her financial adviser in the last few years of her life, so we talked about her finances... I asked what did she have, how did she have this invested. She had it across the street at a savings bank. I guess the utter horror that I felt was apparent just looking at me.
She had always expressed the view she didn't want to be in government bonds, because of it being government. I said, “You know the savings banks, the only thing that's keeping them afloat is the government."
They were probably the riskiest place to have money over the minimum that the FSLDIC insured, because they were borrowing short and lending long. After that conversation, we started changing what her investment holdings were.Rand was a novelist and a philosopher, her advocacy of capitalism came from that perspective. There is no indication at all that she understood the business cycle, how the Fed operated or anything close to that. For Munger to charge that Rand influenced Greenspan in his Fed thinking is absurd and totally laughable.