By Michael Corkery
January 22, 2010, 12:38 PM ET
Is it time to sell?
Warren Buffett would seem to think so. Buffett said this week in an interview with CNBC that if Ben Bernanke wasn’t reconfirmed as Federal Reserve chief, “just tell me a day ahead of time so I can sell some stocks.”
Then today, several more Democrats voiced opposition to Bernanke’s nomination. A vote is expected next week.
Here was Buffett’s take on the matter:
CNBC:….Should he be confirmed?
Buffett: If I could vote twice I would. He should be. He did a magnificent job over this period… We can’t sit here and armchair quarterback him. But when we look back at September and October 2008, he took some extraordinary actions….we talked about it being an economic pearl harbor. He did what he should have done in response.
Q: What happens if he’s not recommended?
Buffett: Well, just tell me a day ahead of time so I can sell some stocks.
Q: You think there would be a strong sell off in the market?
Buffett: Oh, I think so. Sure.
Q: Across the Board
Buffett: Yeah, I think it would be justified.
Q: You do?
Buffett: Yeah, I think Congress is a worry of the American people, particularly what they have seen over the last 12, 18 months. If Congress essentially said we can do this better than Ben Bernanke…I would get very worried.
So far today, the market appears to be ignoring Buffett’s advice, or at least thinks Bernanke still has a good chance of being reconfirmed.
After dropping sharply this morning, the Dow Jones Industrial Average recently was down only 35 points and the volume is light. Then again, maybe Mr. Market is too nervous to trade.
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