The Oracle Says Stick It to Bailed Out Bosses

The Oracle of Omaha spoke to Columbia University students Thursday and told them heads of companies that go for government bailouts should be in the hot seat.

“More sticks are called for,” Buffett said in a town-hall discussion broadcast on CNBC. “There should be more downside to the head of any institution that has to go to the federal government to be saved for reasons of the greater society.”

Buffett appeared with Bill Gates at the town hall, and the two richest men in the world told the audience the worst of the recession is behind us.

"We proved that we can make mistakes," said Gates. "But the fundamentals of the system, a marketplace-driven system where we invest in education and a great infrastructure for the long-term, that's continued."

Buffett is making what he calls an all-in bet on the future of the American economy. His company, Berkshire Hathaway, is spending $24 billion to buy the portion of the Burlington Northern Santa Fe railroad that it doesn't already own. That's a bet that long-term energy and shipment needs will improve, since the railroad's business is hauling coal to power plants and other goods around the country.

"The financial panic is behind us," Buffett said. "The bottom has come in stocks. Don't pass on something that's attractive today."