What's goin' on

So Warren Buffett testified, saying, "who me?? How could -I- ever have seen the housing bubble? Heck, no one did!"

Hmmmm....ok.

But let's take him at his word. To be fair, Warren's never claimed to be a macroeconomic guru or financial wizard. One of his main tenets is, "invest in what you understand."

So, what's scary is that we're in a world where Warren Buffett doesn't understand what's going on or why.

That should give the rest of us pause.

Warren's style of investing is to look at a company that produces stuff people want in a profitable way, and looks likely to do so for a long time, then buy it when it's cheap. (I know he's done derivative trades and the famous GS trade at the pit of the crash, but largely that's what he's always been about.)

So as you mull your own investments, bear in mind that we're living in a world so complicated that it's well beyond the intellectual scope of the greatest investor ever.