I hope Capitol Hill is listening. It’s too late for partisan posturing and pandering, the horse left the barn long ago, the damage is done. Buffett just warned us all on CNBC that we almost went over the edge last week, and that if something isn’t done immediately, we will go over the edge. Forget recession, think depression. Even Cramer has this one right.
It’s extremely disappointing but oh so predictable that the “lawmakers” have chosen to get on their high horses now. Where were they two or three years ago when Wall Street and mortgage brokers were running amok? How shameless can these guys be?
Hey, I hate the idea of throwing a rope to anyone on Wall Street, but this is far more important. We are bailing out the entire global financial system and hence global economy. As Paulson said, “I’ve got news for you Senator: the taxpayers are already on the hook for this”. Buffett just gave Paulson his endorsement, saying there is no one better to have cleaning up this mess. Let’s not forget: Paulson ran Goldman. Unlike your average politician, he truly understands what is happening here.
Buffett also said something that I too believe: the Treasury may well make money on this bailout deal. Most of the $700B of securities purchased will actually prove to be good over time, only a small percentage will likely default. We aren’t on the hook for anything close to the $700B total. I guarantee the world economy will be far better off in the end with the bailout.
This move will simply buy time for the financial system. As Buffett said, you will do well over time if you own a piece of the US economy - just don’t do it with leverage, where someone else can sell you out. That’s the lesson everyone should learn from this.
Hey lawmakers: GET OVER IT. Do the right thing, SOON.
(disclosure: long BRK, GS)
It’s extremely disappointing but oh so predictable that the “lawmakers” have chosen to get on their high horses now. Where were they two or three years ago when Wall Street and mortgage brokers were running amok? How shameless can these guys be?
Hey, I hate the idea of throwing a rope to anyone on Wall Street, but this is far more important. We are bailing out the entire global financial system and hence global economy. As Paulson said, “I’ve got news for you Senator: the taxpayers are already on the hook for this”. Buffett just gave Paulson his endorsement, saying there is no one better to have cleaning up this mess. Let’s not forget: Paulson ran Goldman. Unlike your average politician, he truly understands what is happening here.
Buffett also said something that I too believe: the Treasury may well make money on this bailout deal. Most of the $700B of securities purchased will actually prove to be good over time, only a small percentage will likely default. We aren’t on the hook for anything close to the $700B total. I guarantee the world economy will be far better off in the end with the bailout.
This move will simply buy time for the financial system. As Buffett said, you will do well over time if you own a piece of the US economy - just don’t do it with leverage, where someone else can sell you out. That’s the lesson everyone should learn from this.
Hey lawmakers: GET OVER IT. Do the right thing, SOON.
(disclosure: long BRK, GS)
