Warren Buffett: Cowboy Up and Buy American. I Am.

I hope Barack Obama reads this: Warren Buffett, the Oracle of Omaha, called it right this morning in the New York Times. As he puts it, "Over the long term, the stock market news will be good. In the 20th century, the United States endured two world wars and other traumatic and expensive military conflicts; the Depression; a dozen or so recessions and financial panics; oil shocks; a flu epidemic; and the resignation of a disgraced president. Yet the Dow rose from 66 to 11,497."

Quick thoughts:

1) Unless you think America is about to enter a decade or more of stagnation, like Japan has since its credit crisis, you shouldn't question Buffett's advice—and probably not even then. We are moving far faster to deal with our financial problems, and we have better long-term fundamentals, particularly in demographics. Japan is old and suffering population loss, both growth killers.

2) Don't forget that the World Economic Forum just rated America—again!—as having the world's most competitive economy, thanks to our efficient labor markets, innovation, and great higher education.

3) Buffett advises Obama, and I hope the Democratic nominee takes the mental leap and concludes that one way to help our entitlement system provide a better return is by putting dough in the market. What a buying opportunity!

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