Just announced after a volatile day on Wall Street, Warren Buffett will invest $5 billion in Goldman Sachs (GS).
According to The Wall Street Journal:
Berkshire Hathaway will have warrants to buy another $5 billion in common stock with a strike price of $115 a share, which are exercisable at any time for a five-year term. The perpetual preferred stock will have a dividend of 10%.
A pretty lucrative deal for Mr. Buffett for sure. But, I’m mentioning this not just because it’s big financial news, I’m mentioning it because this tells me that the government bailout is essentially a done deal now. There’s no way Warren Buffett would risk any of his own money without that being known.
He probably already knows that the Democrats are putting up a front to make it appear that they are concerned about the hardworking average taxpaying citizen, when it truth, many of us are already under the impression that they’re just as corrupt as their Republican brethren.
C’mon, what would happen to their presidential nominee if the Democrats appeared not to put up a fight? The election would be over even before the first vote is ever cast.
IMO, this bailout was a done deal even before it was ever announced to the public. The Treasury/Fed proposal didn’t just appear out of thin air. It would have taken months to put such a plan together, and even more effort to keep it under wrap. I’m sure that those in Congress most-likely already knew what was planned. It’s only us “unimportant” Americans who are kept in the dark.
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I read somewhere (which may mean I read something false) that the big hang up in approval is that the Fed has a clause in there seeking no oversight. The reasoning was that they can then act swiftly if economic changes are needed. I think that will end up being the only deal breaker of the plan, otherwise I think it will push through quickly.
What do you think about the government loan out to the US Automakers, you called that one. Also, WaMu sold to JP Morgan.
Posted 26 Sep 2008 at 5:58 am ¶I’m disgusted with any type of bailout. It’s all criminal in my opinion… and to tell you the truth, it’s going to change my whole way of thinking when it comes to my investments.
Posted 27 Sep 2008 at 10:42 am ¶Post a Comment