fnu149

Buffett Puts Money to Work; Buys General Electric Preferred Stock

Let me play devil's advocate. He said the gov't is the only who has the capacity to save the economy from collapsing. Yet, he said you should never borrow money to invest. But in a way, isn't the gov't borrowing the 700 billion to invest in this junk debt?

Afterall, I don't think his approach is really calling a bottom in Wall Street. He only loses if Goldman and GE defaults and these are very unlikely. At the same time he guarantees himself a very good yield. I think Mr. Buffett also wants to do his part in helping the US economy. If he doesn't make a move to help out good companies like GE and Goldman, there are not too many investors who can.