Augustus

Goldman, Buffett Deal with Fannie Mae Inked a Month Ago

Note that the real kicker on the deal is that FNMA is still on the hook for the properties as they have agreed to buy them back. A good question would be whether they would be able to repurchase the properties in the future. having that Put does solve valuation problems for Goldman and Berkshire.

Explaining the Berkshire Share Price

Maybe the market is giving a big discount based upon the default insurance that BRK has on the many bond issues of others? That has become a graveyard for everyone else in that business, AAA or not.

Buffett Profits Plummet, Predicts Bleak 2009 and Possibly Beyond

The reason that Obama was successful was that he promised everyone exactly what they wanted to believe he promised. All he did was to say that he would bring "Change" to Washington. Never made anything clear as to what that change would be. so you could believe it would be the change you wanted, maybe very different from what someone else would expect. The guy has been a charlatan from the beginning.


On Mar 01 12:39 PM paultaut wrote:

> Buffet was not alone. Obama has that effect on people from all walks
> of life, Charismatic Orator, he promised everything to everyone and
> was supported by the Media.
>
> Obama campaigned on the premise of Taxing the rich and Redistributing
> the Wealth, why is there surprise that Corporations hold the Wealth
> and the Rich include everyone who is not "poor"?
>
> The Media never questioned how Obama could promise everyone a piece
> of the Pie. The people heard what they wanted to hear.
>
> Afganistan, more troops when the field commanders don't believe more
> troops will improve the situation?
>
> Bin Laden will be captured because his location is known, Obama will
> use it to enhance his popularity and passage of whatever he wants
> will be ensured. IMO

Buffett Buys More BNI

Isn't Buffett the wizard of Omaha who accumulated a big chunk of Wells Fargo? What would that share price be if Buffett was not defending it so vigorously? You can count on the wizard to keep the price at a reasonable level, that is for sure.

Schumer Is Way Off

Thanks for the good article and explanation of why this new plan faces the same problems as any other. Schmucker is certainly one of the worst. A dagger at the throat of the economy.

The idea that the banks will run out and lend money is a bit odd. What growing business will be able to pay it back in a shrinking economy? Don't you have to laugh when you hear about the problems at the auto dealers? Hell, they aren't selling any cars. Over leveraged in the first place, low volume for 18 months, finally facing financial reality. Many are just broke in a bad business. So this plan is hurried through to save them.

Buffett's Offer: Great for Him, Terrible for Bond Insurers

Bond Insurers "screwed over" themselves.
This deal will have a whole lot of Regulator appeal. Almost irresistable.
Regulators and their bosses get funded through the Muni Mkt.
This will allow them to keep on doing business as usual. Restores the Muni mkt to what it was.
How can a Regulator resist?