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

[NicoleAnon]

Does anyone else think that Goldman Sachs is going to change again in about a year when this is all over and become an investment bank again?

And they will be the only major investment bank left in the country - all the others were destroyed. It's funny how that works when the former CEO of GS is in charge of the Treasury department.

[NTO08]

NicoleAnon, we will all be tipping our hats to you when this comes to pass.

[BernieBernie]

All of this will come to an end soon! You will then see the all billionaire down on their knees.

[NTO08]

Never in a a trillion light years would that happen...these robber barons know how to save their own filthy, tainted money.

[raker]

Stop the presses. Second richest guy in the world is ok with the government saving his ass by paying a trillion dollars in a swindle perpetrated by the banking industry and the Republican government. As they say at John McCain's houses, quel surprise.

[macohmz]

I'm so sick of the deification of rich people. The great majority of people in the country aren't rich. Most do some form of physical labor for a living. I really don't care if someone is rich. I just get sick of that aspect of it being brought up again and again.

[robeson]

Buffet should buy up all the bad loans. Paulson said he might even make a profit from them.

[hypnotoad72]

And as the US is buying them means, if the US makes a profit, the national debt gets taken care of more quickly.

It's not very pretty a situation, but to do nothing would crash all. Far worse a prospect. If you want everything to crash, I suggest you found a mountain or tree or rock to live under and live off of berries and dirt.

[RStone]

Buffet is not going to buy up the bad loans, he is going to buy up the bad companies that are getting bailed out. Golman Sachs, merged with his insurance company. He has a major bank with bailed out debt. How cool is that!

You have got to love this guy.

http://www.bop-o-rama.com

I am bopping McSame at 9pm. Tell ten friends!

[ajax2]

Did Buffet disclose his recent $5 billion purchase of Goldman when he gave his endorsement?

[hypnotoad72]

Where's the beef?

[SmootyBooty]

This is what's really meant by the phrase : "redistribution of wealth."

[Heavenhelpusall]

It's what I'd do too if I had nothing to lose. When will someone address the cause? Here' s the James Bond theory:

http://www.dailykos.com/storyonly/2008/9/23/133349/153/556/607628

[navy62802]

That blew my mind!! WOW!

[ggirl00]

Um ... So! He's a billionnaire, what does he care!

[leftLibertarian]

LOL. Another billionaire asking for a handout from the lower middle class.

[Roxanna]

Of course Warren Buffet would say this.... Do you think he might loose some money if the bail out doesn't come?

[Cybersquirt]

He's gotta be willing to shore up the very system that keeps him rolling in billions.

[iambusto]

I will take a stab at the latest news. allow me :).

Goldman Sachs just announced that Warren buffet will invest 5 billion$ in Goldman.

http://money.cnn.com/2008/09/23/news/companies/goldman_berkshire/index.htm

what it means?

1) Warren Buffett will get 5billion $ worth of Preferred Stock (not common stock) yielding interest of 10%/year

2) Buffett also gets warrants to buy additional Goldman stock at 115$/share. Stock closed at 125$/share today. that means he is already up 10$/share based on how many shares 5 billion can buy @115 (all in todays prices of course). he has the option to exercise the warrant in next 5 years.

3) Goldman Sachs will issue a secondary offering raising 2.5 billion$.

all in all, looks like they dont need the govt. bailout. I hope MS does something soon and maybe the Congress can vote against the bailout. But maybe i am too much of an optimist.

MS sold 20% stake to Mitsubishi Bank day before yesterday. Maybe Singapore Investment fund can look to invest or some other soverign funds.

Write to your congressman that 2 biggest investment banks are already getting capital infusions. we dont need to give out the 700 billion bailout.

[l.blissett]

some more dots to connect:

Litton Loans

http://tinyurl.com/4ota33

[l.blissett]

of course he does:

http://www.cnbc.com/id/26859155

hint:
warren buffett is NOT your friend.
unless you're an investor in berkshire that is

[joebaggadonuts]

Yup. Invested 5 big ones in Goldman Sachs. http://www.ft.com/cms/s/83bf493c-89ba-11dd-8371-0000779fd18c,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F83bf493c-89ba-11dd-8371-0000779fd18c.html&_i_referer=http%3A%2F%2Fwww.ft.com%2Fhome%2Fus

[ritenow]

Let Warren Buffet PAY FOR IT!!!

Put his money where his mouth is.