Update: The GOP managed to stop the current bill by a vote of 57. Back to "negotiations" it goes. "Democratic" Ben Nelson voted with the GOP.
Did you know Warren Derivatives are Weapons of Mass Destruction Buffett was lobbying Congress to exempt existing derivatives contracts from collateral requirements? Did you know that Brookshire Hathaway, Buffett's company, has a $63 billion derivatives portfolio?
Well, this is a first. Warren Buffett's lobbyists were denied a derivatives provision in the Senate bill, according to The Wall Street Journal.
Mr Buffett, the celebrated "Sage of Omaha," believes that shareholders in the two mortgage companies look set to be wiped out as the pair attempt to raise more capital.
"This is not a field of specialty for me, but my general feeling is that the recession will be longer and deeper than most people think," Buffett said. "This will not be short and shallow.
"I think consumers are feeling gas and food prices," he added, "and not feeling they've got a lot of money for other things.
Warren Buffet's Kiss of Death on Minyanville is a most interesting analysis of Buffet's offer to give $800M to the bond issuers. The offer was presented as help and this article says more it's just Buffer smells a fire sale and will bottom feed, grabbing any debt that's actually good.
Recent comments