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Warren Buffet's company Berkshire Hathaway will invested 5 billion dollars in Goldman Sachs.

Berkshire will buy $5 billion of perpetual preferred stock that carries a 10 percent dividend. It also will receive warrants to buy $5 billion of common stock at $115 per share, exercisable within five years.
Reuters 9.23.08

more

The Goldman Sachs Group, Inc. (NYSE: GS) announced today that it has reached an agreement to sell $5 billion of perpetual preferred stock to Berkshire Hathaway, Inc. in a private offering.
Welt 9.23.08

Buffet expressed confidence in Goldman Sachs "Goldman Sachs is an exceptional institution"

Buffet referred to Goldman Sachs's extensive global franchise, strong management, and financial capital explaining his investment.

Goldman Sachs released the following public statement

We are pleased that given our longstanding relationship, Warren Buffett, arguably the world’s most admired and successful investor, has decided to make such a significant investment in Goldman Sachs.
Welt 9.23.08

Goldman Sachs will also issue 2.5 billion in common stock

Goldman's shares are up 8,4% on news of the deal.

U.S. stock index futures surged in extended trading on Tuesday after Warren Buffett's Berkshire Hathaway surprised investors with a $5 billion investment in Goldman Sachs Group
Reuters 9.23.08

UPDATE
You can find the contents of AndrewNYC deleted diary on this subject in the comments here.

Originally posted to pollyusa on Tue Sep 23, 2008 at 03:31 PM PDT.

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Comment Preferences

  •  I guess that idea of limiting CEO pay really (3+ / 0-)
    Recommended by:
    Bouwerie Boy, driftwood, Norbrook

    shook them up.

    "Nothing is more powerful than an idea whose time has come." Victor Hugo

    by lordcopper on Tue Sep 23, 2008 at 03:34:05 PM PDT

    •  No Warren (10+ / 0-)

      Is try to show the public he has confidence in Goldman and the Street over the long haul.

      In the choice between changing ones mind and proving there's no need to do so, most people get busy on the proof.

      by jsfox on Tue Sep 23, 2008 at 03:35:54 PM PDT

      [ Parent ]

      •  Berkshire Hathaway doesn't engage in charity (11+ / 0-)

        by investing in companies.  More likely the G&S management team reached out to Buffett to shore up their balance sheet.  Why forego the govt., bailout unless you're afraid of the strings that come with participation.

        "Nothing is more powerful than an idea whose time has come." Victor Hugo

        by lordcopper on Tue Sep 23, 2008 at 03:45:58 PM PDT

        [ Parent ]

      •  It's preferred stock which means Berkshire gets (3+ / 0-)
        Recommended by:
        Julie Gulden, sd4david, ActivistGuy

        a cut of the assets should Goldman fail also. At least they get paid first.

        "If they can get you asking the wrong questions, they don't have to worry about answers." - Thomas Pynchon, "Gravity's Rainbow"

        by Uwaine on Tue Sep 23, 2008 at 04:12:53 PM PDT

        [ Parent ]

        •  No, but preferred stockholders have priority (3+ / 0-)
          Recommended by:
          AndrewNYC, KenBee, Uwaine

          over commonstock.  Plus that nice 10% dividend, and don't forget the warrants.  This a structure the Treasury should take note of when they begin handing out cash.

          "Nothing is more powerful than an idea whose time has come." Victor Hugo

          by lordcopper on Tue Sep 23, 2008 at 04:59:03 PM PDT

          [ Parent ]

          •  Debt for Equity (3+ / 0-)
            Recommended by:
            KenBee, lordcopper, Uwaine

            This a structure the Treasury should take note of when they begin handing out cash.

            Quite right. I can't say this often or loudly enough: the bailout plan should involve debt for equity or no dice.

            Talking about limiting Executive compensation packages is all very well but it amounts to nothing more than a kick in the teeth for the top dogs at these institutions.

            We have to be talking about protecting the public's interest and that can only come with a debt-for-equity swap. Anything short of that is a capitulation by government and a free ride for the institutions.

            The Buffett deal is nothing close to charity. In fact it's almost predatory: the bank is weak and BH steps in as the White Knight making a healthy profit out of the deal. GS is happy because they don't have to wait for the bailout with its unforeseeable terms, they get an immediate injection of cash on terms they can swallow.

            I also want to point out again that the Paulson bailout plan suits the Republicans just fine either way: if Obama wins, this creates additional fiscal hurdles for Democrats' plans including, but not limited to, healthcare reform. If McCain wins, it provides an excuse for them to go after programs such as Social Security. So I'm sure the Administration thinks that sending Paulson on a one trillion dollar shopping spree as they're walking out the door is very clever.

            Beggars can't be choosers. Congress is operating from a position of strength and the banks need to accept whatever deal they're offered or face both bankruptcy and responsibility for any subsequent market failure.

            One more time: debt-for-equity or go home.

            •  I agree. Sec. Paulson claims to want to maintain (1+ / 0-)
              Recommended by:
              Uwaine

              flexibility, but I can't imagine another arrangement other than the one you detailed.  The taxpayer must be treated like any other investor, and be compensated for risk.

              "Nothing is more powerful than an idea whose time has come." Victor Hugo

              by lordcopper on Tue Sep 23, 2008 at 05:36:01 PM PDT

              [ Parent ]

      •  No, he's making a good investment for his (3+ / 0-)
        Recommended by:
        KenBee, lordcopper, drbloodaxe

        own portfolio. I doubt at all that this is for charity for the nation.

        Children in the U.S... detained [against] intl. & domestic standards." --Amnesty Internati

        by doinaheckuvanutjob on Tue Sep 23, 2008 at 04:52:02 PM PDT

        [ Parent ]

  •  Well, Where are we goinig to get the other (1+ / 0-)
    Recommended by:
    citizenx

    695 Billion at.<snark> I am happy somebody is stepping up to the plate. It feels like Bush/Cheney is holding the American people hostage.

    Dick Cheney is asking Americans for $700,000,000,000. Impeachment Anyone? Obama/Biden 2008 America First!

    by Tricky on Tue Sep 23, 2008 at 03:35:36 PM PDT

  •  Who else likely owns options in GS? (1+ / 0-)
    Recommended by:
    KenBee

    Could it be somebody named Paulson.

    note: I am assumming (speculating) that he owns options in GS because of his prior relationship to that company.  

    •  I believe... (1+ / 0-)
      Recommended by:
      gramofsam1

      Paulson either liquidated his stock or placed it in a blind trust before being appointed Secretary of the Treasury.  That's standard protocol.

    •  Paulson had to sell his stock... (2+ / 0-)
      Recommended by:
      Norbrook, gramofsam1

      ...as a precondition of taking the Treasury job:

      http://www.marketwatch.com/...

      On the upside (for him), all profits on the forced sale are free of capital gains tax, to remove any disincentive to taking up the position.

      Tony.

      quis custodiet ipsos custodes -- Juvenal VI, 347-8

      by golem on Tue Sep 23, 2008 at 04:03:36 PM PDT

      [ Parent ]

      •  Not exactly right (2+ / 0-)
        Recommended by:
        KenBee, Norbrook

        When executive branch officials are forced to sell assets, they are allowed to defer paying the capital gains tax owed if they buy "permitted property" within 60 days of the sale.

        Permitted property includes Treasury securities and a "diversified investment fund," such as a stock mutual fund if approved by the Office of Government Ethics.

        Paulson will have to pay a tax on his gains eventually, but one advantage of the forced sale for any executive branch official - not just Paulson - is the same as it is with any tax-deferred vehicle, like 401(k)s: the longer you put off taxes, the larger the balance that remains invested and the faster your money can compound.
        CNN 6.26.06

        •  hey polly, here (1+ / 0-)
          Recommended by:
          pollyusa

          is a transcript of Bernie Sanders on Thom Hartmann's show today
          some quotes:..

          speaking of the banks, Mitsubishi UFJ, Mitsubishi Bank is buying ten to twenty percent in Morgan Stanley. They hold $1.15 trillion in deposits. They spent $100 billion in August to buy UnionBanCal corporation, the Bank of California.

           and as regards Paulson, my comment was referring to this, and here is the quote:

          He himself, by the way, you should know, in his last year I believe at Goldman Sachs received a $38 million bonus, in 2005.

          [Thom Hartmann]: He walked away from Goldman with $700 million in Goldman stock, and because of a provision in the IRS code that was put in there by Bush senior, so that, for his buddies, he was able because section 1043 of the Internal Revenue code says if you are in the Executive Branch and you have to sell stock in your company to defer, to avoid conflict of interest rules, you defer paying capital gains. So he sold $700 million that had a basis of around $200 million. He had almost a $400 million capital gain that he never paid tax on.

            but most importantly, he says:

          What I fear is that you're going to have a Nancy Pelosi / Harry Reid / George Bush bailout of Wall Street. You're going to have Mr. McCain saying "Oh, not me, not me, I'm not going to bail out these reckless Wall Street traders, not me". And the Democrats are going to be locked in with George Bush, taking the heat for this, and the Republicans are going to laugh all the way to election day. That's my nightmare scenario.

          [Thom Hartmann]: This is the October surprise.

          [Senator Bernie Sanders]: This could be the October Surprise. So the Democrats are worried that on the one hand if they don't act they will be punished by Wall Street with declining markets and other economic problems, but if they do act, they're going to be lumped with Bush, and McCain and Karl Rove are going to laugh all the way to election day. Now what is the answer?

          Obama: One Spouse, One House, One Car

          by KenBee on Tue Sep 23, 2008 at 09:50:51 PM PDT

          [ Parent ]

  •  Microsoft also put $40 Billion in the market (9+ / 0-)

    by buying back their own stock.

    Good time to buy of course, but it's these kind of things that put some kind of confidence back in the market.

    And it will be Buffet's reputation, more than even his money, that will help.

    Remember: we are the ones we have been waiting for. Now do something: donate, organize, GOTV, investigate or spread the word

    by Calouste on Tue Sep 23, 2008 at 03:36:57 PM PDT

    •  correction: they authorized... (4+ / 0-)
      Recommended by:
      MajorFlaw, KenBee, Calouste, Norbrook

      they authorized a 3 year share repurchase program.  That doesn't mean they have to execute it, but it does show that they can.

      I have been writing about this - corporate balance sheets have been written about as being as strong as they've been in 20 years.  Many companies have been building cash, and Microsoft is an example of that.  Buffet has been putting some of his $39 billion to work.  Venture cap has been available, and hedge funds have been creating distressed sale buyout funds.  There is money out there.  A  lot of it.

      •  Thanks for the correction (1+ / 0-)
        Recommended by:
        Norbrook

        Of course they are not going to buy shares immediately. It is a $40 billion promise, not a $40 billion injection of cash.

        I think another few of these multi billion dollar announcements by companies could do more to stabilize the markets and restore confidence than Paulson's $700 billion grab.

        Remember: we are the ones we have been waiting for. Now do something: donate, organize, GOTV, investigate or spread the word

        by Calouste on Tue Sep 23, 2008 at 03:53:00 PM PDT

        [ Parent ]

    •  So, doesn't this prove that (0+ / 0-)

      they can do it themselves?  Don't need our 700B?

      Moderation in all things-NOT

      by Julie Gulden on Tue Sep 23, 2008 at 04:57:34 PM PDT

      [ Parent ]

  •  He did the same with Salomon Bros (13+ / 0-)

    in the late 1980's and made money.

    Buffett is acting in his own economic self interest.

    "What has not been examined impartially has not been well examined. Skepticism is therefore the first step toward truth." - Denis Diderot (1713-84)

    by windje on Tue Sep 23, 2008 at 03:38:49 PM PDT

  •  OMG, a "free market" solution (8+ / 0-)

    Imagine that!

    The way to win is not to move to the right wing; the way to win is to move to the right policy. -- Nameless Soldier

    by N in Seattle on Tue Sep 23, 2008 at 03:39:17 PM PDT

  •  Opportunity knocks - Buffett answers (12+ / 0-)

    This is Warren Buffett seeing an opportunity - and no one will think that he's doing this just out of the goodness of his heart.  He's just done more in one move to help shore up some confidence than the Bush Administration has done in the past few weeks.

    I think that I have had enough of you telling me how things will be. Today I choose a new way to go ... and it goes through you!

    by Norbrook on Tue Sep 23, 2008 at 03:40:45 PM PDT

  •  Hm... (3+ / 0-)
    Recommended by:
    Marie, KenBee, Norbrook

    So if we can find 140 more people to invest, we won't need the bailout! Maybe Bill Gates could lend a hand?

  •  Goldman Sachs isn't holding a giant stinking pile (4+ / 0-)
    Recommended by:
    lysias, Inland, Norbrook, bobscofield

    of credit swap derivatives.

    "The old boy's network. In the McCain campaign, that's called a staff meeting."

    by Simian on Tue Sep 23, 2008 at 03:41:03 PM PDT

  •  Buffett's possibly playing a deep game... (4+ / 0-)
    Recommended by:
    Timaeus, KenBee, mrchumchum, Norbrook

    He always struck me as the kind of chess player who's always thinking several moves ahead.  Possible motives: anticipated profit in light of bailout; profit because GS stock is currently at bargain basement rates regardless of bailout; sending a message of confidence in economy; donating spare change; other (pick at least 2 out of 5)

    •  Not really a "game" so much (5+ / 0-)

      He looks at a company's balance sheet and cash flow, compares it to the valuation, and makes a move.  There's no hidden magic here, and you've got access to the same information he does.

      No games, just basic research.  He's an old-fashioned long position holder all the way.

      Be angry -- but don't hate. They fear your anger, but they use your hate.

      by sproingie on Tue Sep 23, 2008 at 03:53:12 PM PDT

      [ Parent ]

  •  Paulson's retirement funded! (1+ / 0-)
    Recommended by:
    JML9999

    Yay!
    Wouldn't want to have to fight with him in the hash house, he looks pretty predatory.

    Thom Hartmann today was saying how Paulson, ex head of Goldman owns 40 bazillion shares of stock, bailing them out would seem a bit ....like Uncle Scrooge always says: 'Pay yourself first!'
    (he was quoting an article from Forbes)

    His interview with Bernie Sanders today is probably up soon at Air America and Thim Hartmann.com
     Sanders says this is Bush's October Surprise, that the Reepers are ready to run it against us, and that 75% of the country is against the MOAB.
     Any Dems voting for it will be branded either way of course, but that's just what Bernie was saying...as do a lot of us'ns here.

    Obama: One Spouse, One House, One Car

    by KenBee on Tue Sep 23, 2008 at 03:45:25 PM PDT

  •  You watch folks, They'll bail out their own. (7+ / 0-)

    Been expecting a Buffet move for days. The others will follow suit ...the more Congress can stall on this whole bailout deal, the faster the problem will solve itself. The other money will come from the other billionaires who are circling the wagons even as we speak.

    What, ruin our playground? Ruin Wall Street? nah, they won't let it go down.

    As for the Four Horsemanure of the Apocalypse and their cries of ARMAGEDDON, send them home without a dime. Congress, STAND YOUR GROUND.

    No noose is good noose, they said as they put the rope around the neck of the person who couldn't read the sign: Keep off the grass!

    by LRLine on Tue Sep 23, 2008 at 03:46:25 PM PDT

    •  From Limelight's list... (4+ / 0-)
      Recommended by:
      hoolia, KenBee, mrchumchum, Losty

      Warren Buffet,Investor, $62B;
      Charles Koch, Big Oil and Commodities, $17B;
      David Koch (Chuck's bro), Ditto, $17B;
      Abigail Johnson, Investment Manager, $15B;
      Carl Ichan, Leverage Buyout King, $14B;
      Donald Bren, Real Estate, $13B
      Michael Bloomberg, started as a Wall Street trader, wants to give away his fortune -- let him! $11.5B;
      George Kaiser, Oilg, Gas, Banking, $11B
      Edward Johnson III, Investment Manager, $10B;
      Ronald Perelman, Leverage Buyout Crown Prince, $9.5B;
      George Soros, Hedge Funds, $9B;
      Rupert Murdoch, Karma -- make him put up start up capital, $8.3B;
      Philip Anschutz, Investor, $7.4B;
      Harold Simmons, Investor, $6.9B;
      Steven Cohen, Hedge Funds, $6.7B;
      Eli Broad, Investor, $6.5B;
      Stephen Schwarzman, Investor, $6.5B;
      Robert Rowling, Big Oil, Gas, Investments, $6.2B;
      Samuel Zell Real Estate, Leverager, $6.0B;
      Charles Schwab Broker, $5.6B

      Trust me, there are more of these folks out there, and they are swarming. Just waiting to pick up the bargains. (This partial list was compiled by Limelight, so I want to give that person total credit for a great job on another thread.)

      No noose is good noose, they said as they put the rope around the neck of the person who couldn't read the sign: Keep off the grass!

      by LRLine on Tue Sep 23, 2008 at 03:50:10 PM PDT

      [ Parent ]

  •  Buffett demonstrates how to bail out a bank (21+ / 0-)

    [Diary deleted on request]

    From Bloomberg:

    Berkshire will buy $5 billion of perpetual preferred stock [from Goldman Sachs] that carries a 10 percent dividend. It also will receive warrants to buy $5 billion of common stock at $115 per share, exercisable within five years.

    This is perfect: it re-capitalises Goldman Sachs' balance sheet, it injects cash and it gives the investor a stake in the Bank.

    The perpetual preferred stock is great because it's paying a dividend but (usually) doesn't include voting rights so existing stockholders' investments aren't diluted.

    However, the warrants are where the kicker is (and that's a key part of Dodd's plan) because they're priced well below the current stock price and are convertible to Common Stock which is a dilution of voting rights.

    In other words, the Bank has to get its house in order PDQ before Buffett decides to exercise the Warrants and, in the meantime, he's got a nice 10% dividend stream from the perpetual stock.

    From the Bank's perspective, it gets liquidity & capital with incentives to perform and it gets punished for screwing up.

    What's interesting about this deal is that it's a more complex financing structure than a blank check would've been...and yet it seems to have taken no time at all to throw together: proof, if any were needed, that even the expediency argument does not necessitate a blank check approach.

    If it's good enough for Buffett it ought to be good for the taxpayer.

    •  I've updated this dairy (2+ / 0-)
      Recommended by:
      SamSinister, KenBee

      to link to this comment containing the information from your deleted diary

    •  Absolutely correct. (5+ / 0-)

      People don't realize it but we've been in a Bear market for years. Like the other LIES we've seen from this administration, all the wonderful myths about low inflation etc. were just manipulations. To have earned a 10% longterm return, according to Morningstar, you need to have bought in at least 20 years ago and held on.

      Buffett has boiled it down this way, he says:

      If a stock I own goes down to 50%, I'd look forward to it. In fact, I would offer you a significant sum of money if you could give me the opportunity for all of my stocks to go dow 50% over the next month. (from the Berkshire Hathaway Annual meeting May, 2008).

      He has good businesses, so he wants prices to go down, not up, so he can buy even more shares more cheaply before the bounce back. If he's in, we don't need any kind of blank check approach to this problem.

      BushCo has been working this one up for months, and let's hope everyone sees it for the sham it is.

      No noose is good noose, they said as they put the rope around the neck of the person who couldn't read the sign: Keep off the grass!

      by LRLine on Tue Sep 23, 2008 at 03:56:52 PM PDT

      [ Parent ]

    •  One thing that is surprising (3+ / 0-)
      Recommended by:
      Timaeus, KenBee, Norbrook

      is that Buffet/Berkshire Hathaway don't get a seat on the board of directors or a blocking vote. I thought that was their standard mode of operations when making big investments and/or buying troublesome companies.

      Remember: we are the ones we have been waiting for. Now do something: donate, organize, GOTV, investigate or spread the word

      by Calouste on Tue Sep 23, 2008 at 04:04:53 PM PDT

      [ Parent ]

      •  He may not need it because (2+ / 0-)
        Recommended by:
        KenBee, Norbrook

        as I understand it he is looking for places to put his homegrown BH managers ...could be that if he buys enough of it, he'll just wind up running it period. This is only the first block to be bought I think.

        No noose is good noose, they said as they put the rope around the neck of the person who couldn't read the sign: Keep off the grass!

        by LRLine on Tue Sep 23, 2008 at 04:11:28 PM PDT

        [ Parent ]

  •  GS has made a ton of money on the mortgage mess (2+ / 0-)
    Recommended by:
    Norbrook, iBlue

    Check out this article from about a year ago.

    GS has made a fortune on the mess that they helped to create. They screwed over their own customers in the process. Now they want support from taxpayers. Sick.

    •  I posted the same thing about GS earlier (1+ / 0-)
      Recommended by:
      Norbrook

      GS has made a fortune on the mess that they helped to create. They screwed over their own customers in the process.

      Don't expect moral on Goldman. It is simply a money machine. An evil one.

      McCain is not Bush III. He will be worse than Bush.

      by iBlue on Tue Sep 23, 2008 at 04:19:20 PM PDT

      [ Parent ]

  •  Buffett is an Obama financial advisor (6+ / 0-)

    It means he knows a) the bailout is not going to pass as Paulson wrote it and b) Obama is going to win the election.

    louise 'hussein' to you! proud donor to "White Dudes for Obama" Endorsed 11/1/07 and never looked back!

    by louisev on Tue Sep 23, 2008 at 03:59:04 PM PDT

    •  I so hope you are right on both counts! (1+ / 0-)
      Recommended by:
      Norbrook
      •  he is not an idiot (1+ / 0-)
        Recommended by:
        KenBee

        And I don't think Obama is an idiot either.  As the election approaches, with the polls in Obama's favor, we are fast approaching the moment when Bush will have nothing to say about any of this.  And I really think that considering the Senate Banking Committee hasnt had one good word to say about the Paulson Plan as yet, that it isnt going to get out of committee.

        louise 'hussein' to you! proud donor to "White Dudes for Obama" Endorsed 11/1/07 and never looked back!

        by louisev on Tue Sep 23, 2008 at 05:16:47 PM PDT

        [ Parent ]

  •  I would love to hear some suggestions (1+ / 0-)
    Recommended by:
    Catte Nappe

    from Buffett on what the gov't should do right now.  I'm not naive about his intentions but he's an investor with some integrity and a view for the long-term, a very rare breed.  I don't trust Paulson or Congress and we desperately need sensible solutions and some measure of trust in our leaders.  Most of us don't know enough to understand what the best solution is.

    The readiness is all

    by mrchumchum on Tue Sep 23, 2008 at 04:03:58 PM PDT

  •  What should I do with MY $5 billion? (3+ / 0-)
    Recommended by:
    hamletta, ActivistGuy, maizenblue

    That's the question.

    •  Funny...and the right way to think about it. (1+ / 0-)
      Recommended by:
      Norbrook

      Collectively, this is our bank account that's being discussed and we're already heavily overdrawn.

      There are around 138 million taxpayers in the country and the national debt is around USD 9.7 trillion, which means every taxpayer is already in the hole for USD 70,000.

      The banks (and Paulson) are asking us EACH to borrow another USD 5,000 upon which we will have to PAY interest. In return, we will get some worthless pieces of paper and the hope* that at some distant date in the future, the assets upon which they're based will be worth what we paid for them plus interest plus inflation.

      (*hope sold separately. Offer void where prohibited)

      In contrast, Buffett has effectively loaned the boys at Goldman a wedge of cash and will RECEIVE interest and have the option of buying, at a cheap price and at his discretion, a stake in the bank.**

      **(Profit guaranteed. 'Hope & A Prayer' not required.)

      Notwithstanding the demand for total control of the funds, the sheer cheek of the Paulson proposal is just astounding.

    •  Buy a few of Cindy McCain's (0+ / 0-)

      convention dresses. You may have enough left over to get yourself a cup of coffee.

      "All tyranny needs to gain a foothold is for people of good conscience to remain silent". - Thomas Jefferson

      by bobscofield on Tue Sep 23, 2008 at 04:52:11 PM PDT

      [ Parent ]

    •  I have an investment opportunity for you (1+ / 0-)
      Recommended by:
      KenBee

      I strongly suggest you put all $5 billion into the Pass-Through Certificates of the Activist Guy Leveraged Capital Investment Hedge Fund, which maintains a diversified portfolio of innovative investment products in the over-the-counter derivatives market.  

      A nation of sheep will beget a government of wolves. ~Edward R. Murrow

      by ActivistGuy on Tue Sep 23, 2008 at 05:02:09 PM PDT

      [ Parent ]

  •  does that mean the money (0+ / 0-)

    Paulson's bailout price tag is 5B less...lol

  •  is this a msg to other mega wealthy to do same? (1+ / 0-)
    Recommended by:
    Norbrook

    Reformer? Palin? NOT! http://www.dailykos.com/story/2008/9/4/115448/2478/479/586348

    by foggycity on Tue Sep 23, 2008 at 04:35:00 PM PDT

  •  I think this is Warren Buffett (two t's) (0+ / 0-)

    being a patriot, although it is also in the interest of himself and his shareholders.

    He doesn't want to see the financial markets freeze.

    And of course, Congress is about to write Goldman Sachs an UNLIMITED blank check.

    Even if the Congress seems very aggressive in knocking back Paulson's astonishing proposal, it's clear that Goldman Sachs will be the biggest beneficiary.

    One wonders why Paulson is not openly charged with a conflict.

    I thought about investing in Goldman Sachs myself over the weekend, seeing this coming.  But I won't, because I think all those finance guys are parasitic assholes.

    Read Deuteronomy 28.

    by Timaeus on Tue Sep 23, 2008 at 04:57:35 PM PDT

  •  Is Buffet betting that King Pigmen Paulson (0+ / 0-)

    pulls the scam of the millenium off.....or is he trying to derail the King Paulson.....I think the former.

    People this is the @#$%$# of the century....

    We need to go call are reps and raise holy hell! Right now...we the American people have to stop this Fraud of all Frauds in it's tracks.

    This economy will not implode....that is pure bullshit.

    Congress can give authority for a much smaller amount.

    Also we need to create 7 regional Federal development banks each capitalised with 100 billion...which they can then lend credit worthy institutions,Corporations,and mortgage banks money to meet their capital requirements. Banks with clean balance sheets can loan up to 10 to 1 giving them 7 Trillion to lend to expand manufacturing and credit.

    We also need to create a over the credit market to dispose of the Trillion(s) dollar dirivative market.

    Create a federal financial Bankruptcy court to clear the instutions that can't meet capital requirements. There's a start!

    And remember since these federal banks will have spotless balance sheets they can be sold at a profit.....to the private sector after the Pigmen are deposed and go thru bankruptcy!

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