GE has fallen 42 percent this year as a result of negative reyurns from its huge finance arm.
Both, Goldman Sachs and General Electric will be major beneficiaries if the $700 billion Paulson Plan is passed. Thus, the most significant beneficiary of the $700 billion Paulosn Plan is the richest man in America. Cute.
Buffet's father, Howard, is surely turning in his grave. The senior Buffett was an old school conservative. He most assuredly would have preferred dying a pauper then to accept or benefit from government "bailout" money in anyway.
On CNBC today Boone Pickens said that "[Treasury Secretary] Paulson is in communication with Buffett; that's good. The coach is out there in Nebraska. It's a nice, quiet place to think. He's available."
So Pickens, who has been hawking a bailout in advance of his future money losing wind turbine project, knows Buffet is talking to Paulson. Guys, this is one small club.
-Robert Wenzel
And Warren isn't old school? It seems to me that he's recognizing an opportunity to make a hugely profitable investment, as well as keep a large international firm afloat. If he didn't invest that money someone else would.
ReplyDeleteWarren may be using his success and connections to profit from pathways not commonly available to the rest of us, but he didn't orchestrate the situation. His investment habits and business practices are exactly the opposite of what caused this mess.
just to play the advocate. What if he is using his reputation and money to stabilize fears and the economy.
ReplyDeleteWell if he is using his reputation and money to stabilize fears and the economy.
ReplyDeleteHe is doing it in a dumb way. He has to know that the bailout is not going to help banks in trouble, and only benefit those who can take advantage of the situation.
If it were up to me Buffett would do the 700B investment. The US would make huge profits.
ReplyDeleteBuffett actually said if he had 700B he would start buying up the junk for reasonable prices and profit.