Redman

Central Banks Are Destroying Traditional Risk Spread Methodologies

A very good article. Despite the so-called "dangers' of this new methodology..you gotta do what you gotta do! There would be no reason for this if the banks had kept their collective eye on the ball in the first place! These above 'normal' rates companies are paying now are a direct result of a pricing mechanism that didn't/doesn't work in any environment. The market (bonds, stocks, Libor, etc.) are trying, albeit lamely, to re-price what they think is the current value for instruments that they and the banks invented and possibly never really understood! Who ever thought that home values would collapse? Certainly not those who invented and marketed these products! Hence the neurosis surrounding the current atmosphere. If we are to survive this crisis then the steps being taken ( and remember, these are short-term steps) will have to be accepted as they are until the de-leveraging process works itself out.

Why Is Everybody Selling as Buffett Is Loading Up?

Buffet can afford to wait...but he could be early and wrong this time around...consider his previous over-weight allocation in insurance.
Sure he'll get a 10% dividend on his preferred shares..IF..Goldman and GE don't have future problems. Nothing is sacred in this atmosphere..even Buffet.