Thursday, February 12, 2009

Charlie Munger Speaks

Charlie Munger has always taken a backseat to Warren Buffett in the pantheon of Value Gods, not because of ability, but perhaps out of a lack of ego or some other reason. He penned an editorial in the Washington Post yesterday morning that made some interesting points.

The full editorial is here.

This editorial has been well covered so I won't go over each point, but the most interesting part to me was the last paragraph:

"...officials might want to consider a precedent that helped establish our republic. The deliberative rules of the Constitutional Convention of 1787 worked wonders in fruitful compromise and eventually produced the U.S. Constitution. With no Marshall figure, trusted by all, amid today's legislators, perhaps the Founding Fathers can once more serve us."

If Munger calling for a constitutional convention to solve our problems? This would, of course, be unprecedented in our history. Our constitution has been amended many times, but only by Congressional action, not through a convention which must be called for by two-thirds of the states. If a convention is called, then everything is on the table, not just the Financial system. This might be a little too radical a solution as the partisanship fighting would explode to new levels at such an event.

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  1. I think he was referring to these two ground rules at the Constitutional convention

    "Two ground rules would govern the proceedings of the Convention. First, all deliberations were to be kept secret. (Detailed word about the debates remained guarded until the publication of Madison’s notes in 1840.) Second, no issue was to be regarded as closed and could be revisited for debate at any time."

    I assumed that is what he meant to avoid the grandstanding that is currently happening that prevents progress.

  2. "all deliberations were to be kept secret"

    good luck with this in today's world.


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