Friday, September 26, 2008
After Warren Buffett buying into Goldman Sachs ($5bn preferred stock with guaranteed 10% dividend, for his 'brand value') which he is now earning by warning that the US financial system faces an "economic Pearl Harbor". (Not only the US, but Europe too of course!) We now have a pearl-handled starting gun waiting to fire up the markets. He ordered Congress to pass Paulson's TARP ($700bn "bad bank"), to allow firms to sell toxic assets. Speaking to CNBC the "sage of Omaha", 77, commented: I'm not saying the Paulson plan will eliminate the problems but it's absolutely necessary, in my view, to avoid going off the precipice." He added: "I bet they'll make a profit…I would love to have $700 billion at treasury rates to buy fixed-income securities - there's a lot of money to be made."
Posted by Muh Sholex at 5:09 AM