You are right, he is not invested in real estate. The actual problem
is in the companies that own the mortgages like Bear Stearns, a big
part of which he owns. He is right, some intervention is necessary.
The issue is who will benefit most from the intervention. The press
makes it sound like we all will be in deep trouble if the present
bailout bill does not pass. The present bill helps the financial
industry directly. It does not help us ordinary people, except to
prevent a worse situation. A better bill would help us directly as
well, but the information controllers have made this impossible by
generating panic. Why after the spin and lies that gave us Iraq would
anyone believe anything the general media says?
Ed
On Oct 2, 2008, at 1:19 PM, Jed Rothwell wrote:
Edmund Storms wrote:
You need to remember that Warren Buffett is heavily invested in the
financial industry. Consequently, he is going to benefit from the
bailout.
I have no idea where Buffett has put his money, but I doubt that he
has any invested in real estate funds. He has been saying for years
that they are economic insanity. If he has nothing invested in them,
then he will not benefit directly from the bailout. He will benefit
indirectly, along with the rest of us, if it works. In other words,
if he has no stake in any real estate CDOs then his views are
disinterested, and should not be suspect any more than the views of
any other concerned citizen or knowledgeable businessman.
Buffett is referenced in the radio program, with his name spelled
wrong, on p. 3:
"Alex Blumberg: So, a CDO is sort of a financial alchemy. Jim takes
that toxic stuff,
these low-rated, high-risk tranches, puts them all together. Re-
tranches them, and
presto: he has a CDO whose top tranche is rated AAA, rock-solid,
good as money.
If this seems too good to be true to you, you're in good company.
Guys like
billionaire investor Warren Buffet said the very logic was
ridiculous."
- Jed
