I thought this bill was the worst idea ever, until I heard Warren Buffett speak up for it two days ago. Buffett has both integrity and economic skills, and he probably understands this proposal better than any of us.
The US government has a pretty poor track record for "emergency proposals" and other decisions these last 8 years, so I understand the skepticism. I'd vote against it myself. But there's more to the story than what you hear in most inflamed internet postings. Buffett himself says that we eventually need to roll some heads, but that it shouldn't be our first priority.
They shouldn't buy them at what they're carrying, what the carrying value is, necessarily.
They should buy them at the kind of prices that are available in the market.
People who are buying these instruments in the market are expecting to make
15 to 20 percent on those instruments. If the government makes anything over its
cost of borrowing, this deal will come out with a profit. And I would bet it will come out with
a profit, actually...
Fuck Warren Buffet. Who died and elected him grand master of the universe anyways?
Note that I'm not asking whether he knows how to make money - clearly he does: witness putting $5.000.000.000 into Goldman Sachs and then lobbying like hell for the bailout of ....... ..... (guess who?)
Is it the swearing that gets the downmods, or the contrarian view? Either way: Any of the downmodders have further thoughts now that the Dow is taking a beating despite the bailout?
For instance, http://ph.news.yahoo.com/rtrs/20080924/tbs-buffett-bailout-7...
The US government has a pretty poor track record for "emergency proposals" and other decisions these last 8 years, so I understand the skepticism. I'd vote against it myself. But there's more to the story than what you hear in most inflamed internet postings. Buffett himself says that we eventually need to roll some heads, but that it shouldn't be our first priority.