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Here I Go, Criticizing Warren Buffett

You can't blame a buy for getting the best terms possible for himself, I mean that's what I try to do. Does anybody go out of their way to pay more than they have to for their investments? I think that all the shareholders of GE and GS benefit when WB buys into the company, it's a pretty solid endorsement and it's worth way more in my book than an upgrade from some analyst. Is he a "vulture" investor, I don't know what that means but again, can you blame him for being opportunistic? Warren Buffett isn't doing anything in secret as far as I can tell, he is above board and if there is any conflict of interest the SEC is free to call him on it. Also, both GS and GE were not forced to go along with these deals....they could have said no or bargained for better terms. If you have a problem with anybody it should be with the CEO's at GS an GE because they are charged with the responsibility of doing what's best for the company; not WB.

As far as Buffett telling people to buy stocks goes; it's probably good advice but buyer beware. If you don't have a 5 year minimum investment time horizon you shouldn't be buying stocks anyway....ever. The people trying to make a quick buck in the market may get burned by Buffett's advice to get into the market but the people with years to stay in won't. Note the Buffett is NOT calling a bottom, he never does that. He is saying that he sees value in US stocks at these levels. All that implies is that he believes these companies will be worth more in 5, 10, 20 years; it does not mean that he is certain they will not go down more before they go up again.

Wells Fargo in the Lead for Wachovia; Is Bailout Really Necessary?

I think that we're about to see another bull market and it will be in, of all things, distressed mortgages. It sounds like some banks and private equity firms are getting ready to try to buy some of this stuff with all the money that's been sitting on the sidelines. My fear is that the private buyers will get in right before the final vote on this bill and buy the best of these "mystery bonds" at the lowest prices and by the time the government starts buying the market for these "investments" will already be in motion and Uncle Sam will will overpay for the runts of the litter.

There's Only So Much That Goldman Can Do

I don't think that anyone really knows what GS owns and doesn't own. Really, how many of these firms came out in the recent past and said that everything was fine only to implode days or weeks later. The GS CEO has been very quiet while the stock sinks below $100. The people at GS are smart but I don't think anyone could have predicted the mess we are in. I'll bet that GS will be talking about a merger with someone by next week at the latest. It sure didn't take Morgan Stanley long to put themselves up for sale after a "better than expected" quarter. The best we can hope for is that GS buys a bank to partner with instead of getting bought by a bank at fire sale prices.