Posted on 09/25/2008 7:37:25 PM PDT by Lorianne
Taxpayers should wake up the politicians and ask them to tell Wall Street: "We want the same deal Warren Buffett got." The Omaha billionaire announced he is playing White Knight to Goldman Sachs by investing $5 billion in the endangered investment house. What a big-hearted guy. Buffett is an old-fashioned capitalist who invests in companies for the long term and I am a big admirer. But Warren Buffett did not get to be a billionaire by committing public-spirited acts of charity. He plays to win.
So his deal with Goldman Sachs is carefully wired to produce gorgeous returns for Buffett's Berkshire Hathaway. Upfront, he gets a 10 percent ownership stake in preferential shares that will pay a 10 percent dividend--even if Goldman's stock price keeps falling. But Buffett also gets the right to buy $5 billion in common shares at below the market price. So if Goldman flourishes in these hard times, Buffett will win big as its stock price soars.
To sweeten his chances, the Omaha sage quickly announced that he endorses the $700 billion bailout plan proposed by Treasury Secretary Paulson. Let's follow the bouncing ball. Buffett puts some of his capital at risk on terms that are smartly protected from loss. Then Buffett urges the taxpayers to put their money on the line too. Only the taxpayers don't have any deal. They are the naked investors in this drama, asked to put up many billions to rescue Wall Street firms with nothing more than a vague promise it will save the Republic. I am reminded of the oldest rule in the financial business: "Get it in writing."
(Excerpt) Read more at thenation.com ...
Wow! The Nation nailed it pretty well, for a left-wing rag.
Don’t they realize that Buffett is one of them? They’re not treating him with the usual deference they afford Leftists.
Show us also why $700 billion is needed at this moment.
Or was the pressure and Bush’s scare tactics not products of fear, but to trick Congress on the eve of adjournment of Congress?
Leftists don’t appreciate people capable of thinking and actually making money for themselves.
Hell, that’s UnAmerican to them! If you’re successful, you’re anti-poor and anti-compassionate.
This won’t be the last bailout. They want to do student loans, car loans who knows what else.
“businessmen who fail in neighborhood stores have to close shop and often sell their homes, while Wall Street titans are spared”
I say, KILL THE BULLSHEET BAILOUT, THEN SHOOT IT IN THE HEAD.
25billion FORD GMC ..wasnt enough, need more
30billion BEAR .....wasnt enough, need more
85billion AIG .....wasnt enough, need more
200billion FANNIES...wasnt enough, need more
770billion WHO ELSE? and no one will ask the question,” Will this be the last dollar we have to spend”? ....
...........Because it won’t be.
Spend $700 billion, 5 percent of our gross domestic product?
They either STOP this bailout, or we START with our Run on the Banks and Stocks. All our money out of there and into Treasury securities....a - FLIGHT TO QUALITY.
I know, I was stunned as well. It’s a good article
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.