Warren Buffett Backs Bailout Plan

The Bush administration's controversial financial bailout proposal may be getting a heavy dose of criticism today from angry lawmakers on Capitol Hill, but Warren Buffett tells us he wholeheartedly supports the plan.

He told CNBC's Becky Quick over the weekend, "It's what I would do if I were there."

Read the full story here

-OR-

Read about the Paulson, Bernanke and Cox testimony in front of the Senate Banking Committee

Comments

[PT6]

****DELAY PASSING UNTIL AFTER ELECTIONS WHEN WE HAVE MORE CONTROL****
**********­**********­******THIS IS NOT THE OBAMA PLAN!*****­**********­**********­*********

"NO TAXES FOR RICH FOR TWO YEARS!" WHAT "COOKS"

REPUB "COOKS" ARE GOING TO PAY ZERO TAX MONEY FOR NEXT TWO YEARS
WITH NO STRINGS ATTACHED - THIS WILL COST FAR MORE THAN $700 BILLION!
WITH NO CONTROLS

VOTE NO PLEASE VOTE NO!


Tom Delay the old Repub House Leader said he wants the CAPITAL GAINS TAX REDUCED TO ZERO FOR TWO YEARS!

That would be the BIGGEST BAILOUT IN OUR HISTORY!

IT WOULD MAKE THE $700 BILLION LOOK LIKE A peanut!

ANOTHER REPUB TAKE FROM THE MIDDLE CLASS!

OBAMA CAN KISS HIS PACKAGES GOODBYE!

DON'T LET THEM DO THIS!

TO HECK WITH THE HOUSE REPUBS!

[doctorkeys]

Surprise! Surprise!

Billionaire Warren Buffet comes begging tax payers for a handout. This is corporate welfare at its most extreme. Don't you have enough money yet Mr. Buffet? This would be hilarious if it weren't so outrageous.

[LMT]

OF COURSE Buffet is pushing for the bail-out! He now has a personal stake in one of the companies to be rescued (i.e. a PROFIT motive). Conflict of interest? Insider Trading? This stinks.

[themodernleader]

Shorthair. Read Martin Weiss and Kevin Phillips about the amount and extent of debt. Even Bernacke admitted he was "shocked at the breadth of the debt", this morning.. He knows, or should know, that 700 billion will be a temporary effort that will raise the market and releive people's minds until after the election. This is as much politics for the retrenchment of plutocratic power as it is saving our economy. In a couple months there will be more emergency sessions to demand more money to fill the pockets of domestic and foreign pockets. And our currency will be worth nothing and our savings will be wiped out and then their will be social unrest and talk of other than democratic processes to solve our problems. The system must collapse to cleanse our country of bankrupted entities and organizations. Then the government can meet and brain storm and originate rational policy.

[themodernleader]

The archfox of capitalism, Warren Buffett can smell a bonanza. When the 700 billion dollar gift is deposited in Goldman Sachs, Mr. Buffett will be paid back in largess, then he will quietly sell his stack for big money before the bank collapses. This is one result of the transfer of wealth through this outrageous policy to further the ends of entrenched plutocracy.

[ShortHair]

Normally I read the Huff Post to get inspired, but not lately reading rash comments related to the bailout.

Warren Buffet has plans to give his entire fortune to charity. He still lives in the same house he has lived in since 1958. What have you done themodernleader?

The economy will be worse for everyone with out the "bailout". It won't cost taxpayers 700 billion, because the assets are not worthless and can be sold later. Maybe even for a profit. Banks have strict accounting rules requiring them to write down the value of the assets. Also rules saying how much they can lend based on their assets...

[frappe]

Given that a taxpayer bailout is almost guaranteed, an important point for our congressional representatives to remember during this "negotiation" is that by virtue of this taxpayer bailout of Wall St., we, the taxpayers, are, in truth, investors and can, as such, demand an equity position in those firms being rescued just like any other source would insist upon had they handed over large sums of cash and assumed an inordinate amount of risk or liability on behalf of a private entity or entities. And, as such, taxpayers, through their congressional proxies, have an absolute right to make DEMANDS if Wall St. wishes to benefit from this spectacular influx of taxpayer revenues. After all, it is Wall St. that has come to the public trough, on its knees, asking for the financial help.

Given this configuration, it is Congress, and the taxpayer, who holds the power or leverage. This is not "funny money" after all. It's our hard earned cash, and we, the taxpayers, are being asked to make substantial sacrifices over a considerable period of time, perhaps decades, as a consequence of Wall St.'s aberrant behavior. After all, we would much rather use this money for other purposes (health care, renewable energy technologies, Social Security, etc.) than bailing out or assuming responsibility for others' mistakes or greed.

This is not a GIFT! We demand an EQUITY POSITION and COMPENSATION!

[NotesFromME]

The American MSM seems to completely overlook the connection between Paulson and his former firm when discussing what is going on. Isn't it rather odd that Goldman Sachs is magically one of the last survivors of the debacle, and the only one that Buffett (who generally avoids investment in Wall Street firms after his adventure with Saloman Bros) would consider capitalizing with 5-10 billion?

The Financial Times (of London) is reporting that Wall Street firms led by Goldman Sachs are "queing up" to MANAGE the portfolio of "toxic debt" once Paulson secures the 700 billion. The link is here:
http://www.ft.com/cms/s/0/59e93466-89d2-11dd-8371-0000779fd18c.html

In other words, the Wall Street firms led by Paulson's old firm (in which he no doubt still owns stock)will get the junk debt off of their balance sheets but make a bundle in the asset auction and in management fees once the Paulson's "fund" is created. Can anyone else see a problem with this?

Off course Buffet wants the bailout! He is banking on it!

[Speakupper]

NotesFrom ME, I absolutely agree. I respect Buffet and his integrity. But he is hardly a neutral observer of the bailout deal. Any reporting of Buffet's opinion on the bailout or Goldman Sachs should include the following:

1) Buffet backs the bailout in part because it helps fund his GUARANTEED 10% annual return on his new stake in Goldman Sachs.
2) Buffet did not pick Goldman Sachs out of a hat. He is well aware that Paulson is the former chairman and ceo there and will likely help insure that they benefit in this deal. (thanks for the above link).
Huffpost should include links the related stories that give more insight:
http://www.huffingtonpost.com/2008/09/24/buffetts-goldman-deal-is_n_128812.html

I wonder if his Goldman Sachs deal is contingent on the bailout going through on his terms? The timing of Buffet's move is interesting. Will Paulson will be able to use it as leverage in these "negotiations" with congress? Imagine the effect on the markets should Buffet suddenly withdraw his support "signaling a lack of confidence".

Wouldn't all Americans be cheerleading the bailout if we as taxpayers were guaranteed a 10% annual return on the money we are putting up?

[KBAR]

goldman sachs money obama
http://www.opensecrets.org/pres08/contrib.php?cycle=2008&cid=N00009638.
Goldman Sachs $691,930

[bobrobthomas]

Hurrah Warren!!! I will believe you when you pull a J P Morgan (ciria 1928) and drop 700 billion of your money into the market to buy up the bad paper of companies who ignored prudent business practices and ignored everything you have championed for the last 30 years. Since you are willing to do this, does this mean that the American taxpayer won't get stuck for the bill for a bunch of greedy CEO's? Oh, i'm sorry - are you only in favor of the American taxpayer saving your sorry butt from the effects of your own bad business discisions?

[Vasey]

It just goes to show that even smart people can be wrong.

[SurfCat]

It's called salting the mine.

On top of that, as an old Rockefeller and Rothschild ally, it's not even his money...

[Rog49Thomas]

Could this story be related in any way to the one with the headline "Buffet to Invest $5 billion in Goldman Sachs"?

[egal]

Of COURSE it's what he would do. He's not part of the 98.some percent of United States citizens who have to worry about losing homes, jobs, health; he's part of the top tiers this plan is designed to benefit without any oversight or limitations while leaving the rest of us to hang.

[Mildmannered]

but buffet is buying a $5B stake in Goldman Sachs, so I don't trust his objectivity

[XME]

Here's a though... I think they need to put it on the national ballot for a vote on November 4th:


BAILOUT? YES / NO


To say that if we don't do this by FRIDAY everything will completely fall apart is just ridiculous...they would have been able to see it earlier if it was that bad!!

[NTO08]

The reason to do it fast? Obviously someone has some interest in making fast money...