Buffett to the rescue.

[BigBagel]

http://www.bloomberg.com/news/2011-0...res-surge.html


Buffett gives FIRE a shot in the arm. I believe that no one can untangle the bag of worms called Bank of America and determine it's true worth, not even the "Great Sage".

[c1ue]

Re: Buffett to the rescue.

Let's not forget Sir Warren got pounded by derivatives he gained when he bought into General Re.

But this isn't about investment per se - this is Sir Warren bottom fishing.

I have no doubt that the terms of his 'investment' are just a punitive as they were with his Goldman deal.

[FrankL]

Re: Buffett to the rescue.

Let's not forget Sir Warren got pounded by derivatives he gained when he bought into General Re.

But this isn't about investment per se - this is Sir Warren bottom fishing.

I have no doubt that the terms of his 'investment' are just a punitive as they were with his Goldman deal.

You mean Warren Buffett charges usurious rates for the TBTF when he knows the government and reserve bank have his back? Who would have thought! You're just being negative about this good Samaritan for the US economy!

[Chris Coles]

Re: Buffett to the rescue.

Bank of America. Perhaps the best bank name in his country.

A very shrewd move!

[touchring]

Re: Buffett to the rescue.

Let's not forget Sir Warren got pounded by derivatives he gained when he bought into General Re.

But this isn't about investment per se - this is Sir Warren bottom fishing.

I have no doubt that the terms of his 'investment' are just a punitive as they were with his Goldman deal.

I don't get it, why pay 6% when they can borrow from the Fed at near zero? Or did I get it wrongly?

[rdc2008]

Re: Buffett to the rescue.

Um, so if Uncle Warren called Barry a couple of days ago to discuss said deal, and Barry reassured Warren that he wouldn't let BoA fail, and Uncle Warren traded on that tidbit, do they both get to go to jail? They don't even try to hide the collusion anymore. Sad.

[flintlock]

Re: Buffett to the rescue.

Cramer called it!

They are playing it on an endless loop on CNBC!

[c1ue]

Re: Buffett to the rescue.

I don't get it, why pay 6% when they can borrow from the Fed at near zero? Or did I get it wrongly?

Because if BofA borrows from the Fed directly, everyone knows that bank is f***ed.

But if Warren invests, BofA *must* be ok.

This premium is what the punitive conditions are for. Warren knows the value and so hasn't fallen for selling it out in the name of short term profit like the ratings agencies.

[BK]

Re: Buffett to the rescue.

Perhaps a BofA deal - backstopped by the Full faith and support of the US Treasury is a nice reward for Mr Warren Buffet begging for higher taxes for the Rich- just last week - Mr Buffet works well with the current Presidential Administrations Policy interests and it seems to pay off.