Leucadia 2010 Letter to Shareholders

The Future

The day this was being written, the Morning Joe television talking heads announced that the unemployment rate fell below 9% after hovering close to 10% the past 21 months. One of us is an immigrant who arrived here at age 15. Since that age, he marveled at the resilience of Americans to get up, get to work, and fix any problem. Less than 9% unemployment suggests America may be getting back up and back to work again.

There are, nonetheless, several lurking problems:

1. The United States Congress is in an eternal mud fight with no adult supervision.

2. The Country has a huge, dangerous debt.

3. Inflation lurks behind each future borrowing.

These things are dangerous and must be stopped and fixed.

Those who throw stones, such as we have, also have the responsibility to provide suggestions for improvement. On December 1, 2010, the White House released The Moment of Truth: Report of the National Commission on Fiscal Responsibility and Reform to the American people. The Report presents many long-term and short-term suggestions that would help the United States get its fiscal house in order now, as well as, in the future. The Congress gave little notice. Surely some of the suggestions would have been helpful and we recommend the entire Report to our readers.

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Link to related report: The Moment of Truth: Report of the National Commission on Fiscal Responsibility and Reform