January of 2009 United States of America will have a new president and new government. That's mean US will have a new Secretary of Treasury, the most important and crucial position in the government.
Now that is good news as we know Henry Paulson is one of the lousiest ever Treasury Secretary of all human history. Getting rid of him will surely bring some "change we can believe in".
Everybody talking about Warren Buffett, chairman and CEO of Berkshire Hathaway inc, as one of the hottest candidate for that position. Warren Buffett is a legendary investor. His life is a epic journey every investor should know. Every word that he said should be remembered by investors arould the world. He helped countless investor became millionaire and he is the world's richest man.
Besides that, he is a modest man. He live a simple life, driving a low cost car and staying in a medium-cost house.
However, as the head of the department of Treasury, The Secretary of the Treasury is the principal economic advisor to the President and plays a critical role in policy-making by bringing an economic and government financial policy perspective to issues facing the government. The Secretary is responsible for formulating and recommending domestic and international financial, economic, and tax policy, participating in the formulation of broad fiscal policies that have general significance for the economy, and managing the public debt. The Secretary oversees the activities of the Department in carrying out its major law enforcement responsibilities; in serving as the financial agent for the United States Government; and in manufacturing coins and currency.
In other word, The Secretary of the Treasury is the financial advisor for US government and in charge of economic policy(micro and macro) of US government. That's ironic because warren buffett is not famous of economic studies. Warren Buffett is a investor. He is not a economic expert that know how to ensure stability of a economy. Instead, he more comcern which type of investment will give him maximum return.
In other word he is a wall street guy and not main street guy. I bet he know much more about stock market that economic. However some time what good for stock market may not be good for economy and vice versa. So for me who should become next US secretary of Treasury?
A nobel prize winner may be a good candidate as he or she sure know about economy more than Buffett. If we can't find one then a prefessor in a famous University such as MIT, Harvard may be a good idea. At least his or her main focus is economy itself and not wall street.
The candidate must also know the importance of free market mechanism. Free market is the only tool that help US to become the most powerful nation in the world. It correcting government failure every single time. Without it, US uis already died in 1929 or 1970's. Every time US government agencies did something wrong, free market gave a warning and correct it. However this time government don't care about free market warning and ignore it. Let's see what is the consequences of that...
Anyway that's my point. Henry Paulson did such a lousy job because his main focus is wall street and ignore main street. He take care of the wealthy people and ignore the lower-medium class people. He helped chairman of big companies but he never help a poor citizen. Let us hope next US Secretary of Treasury won't be that.
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