A long, but worthwhile explanation on where we are…and why the bailout was necessary. Thx to ADK.

Some highlight Buffett-isms from the video:

• I would rather be approximately right than precisely wrong

• This is truly an economic Pearl Harbor.

• The patient on the floor in cardiac arrest is not Wall Street, it is the American Economy

• Everyday you don’t react to Pearl Harbor you are otherwise behind in a war that you would have fought.

• Sheila Bear and Hank Paulson are great leaders…need more tools. They need money and flexibility.

• Derivatives…financial weapons of mass destruction.

• We naturally go through the 3 I’s: Innovators, Imitators, and the Idiots.

• Leverage is a lot like Cinderella at the ball…we all know they turn into pumpkins at 12…nobody wants to leave before then.

• Confidence in institutions is a lot like oxygen…when it is gone for 5 minutes it is the only thing you think about.

• The American System unleashed more potential in human beings…we have all the ingredients for an incredible future.

• Beware of Geeks bearing formulas.

• I’m not worried about the country, I’m worried about anything that gums up the potential of the country.

• The recession is going to get worse…best case is 6 months. Worst case is a long time….5 years.

• It is more important who the Treasury Secretary is than who the Vice President is.

• I would hand a blank check to someone like Hank Paulson.

• Mark to market is a good idea. Telling the truth never hurt anybody. You get in a lot of trouble when you start putting fictitious numbers on assets.

• I am paying the lowest tax rate in my life…and that is crazy. I should be paying more taxes.

• We need real leadership in government. Someone who can explain things to people.

• If AIG had tried to unwind its derivatives book, it would have hit every financial institution in the world.

• It would be crazy not to do this….you are going to see more bad news. But over time the system will work.