Warren Buffett has just announced that he has purchased $5 billion of Bank of America preferred stock.
A trader emails:
probably means Bernanke is going to offer the mkt somethingRemember, Buffett bought his Goldman Sachs stake just days before the huge bankster bailout was announced. And Buffett spoke with the President earlier this week.
As for Buffett, he's in full Howdy Doody mode. He told CNBC that he got his idea to buy BAC while he was in the bathtub.
Recall Buffett just recently "advised" Secretary General Obama on the economy. Recall the Dear Leader is giving an "important" speech on the economy on September 5th.
ReplyDeleteI don't think Bernanke will announce much of anything. I do believe that Obama will announce some absurd, hair-brained scheme that might relieve BAC of some/all of its mortgage-related problems.
Well at least he wasn't sitting on a can while he decided to make a 5bn purchase.
ReplyDeleteI have 0 percent respect left for Buffet. He's a moron!
"He told CNBC that he got his idea to buy BAC while he was in the bathtub."
ReplyDeleteKeeee-riced.
Seems to be just another part of the theater/circus surrounding JH, which should continue for several days. I would expect more disappointment and euphoria via speeches, press statements, op-eds and the like over the next few days. Fed is simply gauging market reaction now, and you can bet the timing was optimally coordinated with the help of Bernanke.
Bernanke: "I just want to thank those of you attending the conference here at Jackson Hole. Your work is appreciated. As a token of gratitude, I want to offer something to all of you and also to our friends on Wall Street: Starting tomorrow. . . The Fed is giving out bricks of cocaine, thousands of whores, gallons of booze and loads of cheap money. Make sure to invest, don't worry about fucking it up, we'll save you."
ReplyDeleteBuffett, stark naked, sitting in his bathtub doesn't hear this. But using the same precognitive abilities that allowed him to profit off Goldman, says to himself: "My antennae have detected a shift in the ether. I must buy some BAC."
So Buffet shares his bathtub with others who can whisper in his ear? How gross is that?
ReplyDeleteKing of the welfare queens.
ReplyDeleteHe scooped up preferred and warrants in the bank Jamie Dimon might soon be gifted with, just after he talked to Obama?
ReplyDeleteThat isn't suspicious.
Trader Vic takes on Bernanke at the American Spectator (hat-tip to Christopher Manion, LRC blog)
ReplyDeleteBuffett is going to make another fortune off the backs of taxpayers. How much of that $100B of taxpayer theft/government investment goes to Buffett for his support of the Mafia Don in Chief?
ReplyDeleteSo is BAC the new Infrastructure Bank, or what?
ReplyDeleteBuffet's Billions came from buying tax-threatened businesses and using his lawyers to wiggle out of IRS clutches.
Then Goldman the week before bailout.
Now BAC the week(s) before...?
Yeah, I'm betting on BAC = NIB.
Bernanke called Brian Moynihan and told him, "You need capital. Buffett is calling in 10 minutes, you're not allowed to say no."
ReplyDeleteAlmost every day for the last month, Moynihan has said that BAC "doesn't need capital". If that was true, he would have told Buffett: go buy BAC common stock in the open market. This was a Fed-brokered deal, plain and simple.
Also, if the Fed had done the deal directly the entire financial sector would have tanked. Big time.
My dream come true would be Buffet(King Rent Seeker), Obama(King), & Bernanke(Overseer/Driver) were all prosecuted for "insider trading".
ReplyDeleteThat is why Buffet said he want to pay more tax, because he can always get back much more in return for the extra tax that he pay. And the other wealthy lots get dragged in to supply the money in taxes that eventually go to him and other bankers.
ReplyDelete