If's and but's are irrelevant. The fact of the matter is it didn't get wiped out, and Buffet stands to make alot of money because of it.
You don't know nobody else had the chance to grab the investment...For all you know, others passed due to the risk involved. That being said, it was indeed a sweet deal. You claim corruption, but the way I see it, it was just a smart man making a smart investment at a time when others (besides the US government) wouldn't touch it with a 10 foot pole. I say congrats, Mr. Buffet.
The warrants never hit the markets, it was a direct deal between Buffet and Goldman. It's not like he just purchased preferred or common stock. It's actually not complicated to figure out why only he got access to that deal, but I'm sure it's way above your level of comprehension. Buffett is yet another welfare case of these corrupt bailouts. He took the investment while lobbying hardcore for the bailouts. It is corruption, as most taxpayers were against it, while those receiving the payouts were "coercing" Congress into approving it. Don't forget to wipe when you get off your knees.
Who else has the capital to make such an investment?! A public offering surely would not have raised nearly the amount required... The deal was publicly announced and all details were released. Nobody tried to hide anything in this deal...Of course I don't expect you to buy into this because you are of the "government information is all lies and manipulation" crowd who are likely short the market. Go back to your garage and build some computers.
IT would have been wiped out if the government didn't pour hundreds of billions into the system, so basically the system would have collapsed and GS would have been trading in the single digits. Thank the fed and the government for the last 40%+ rally we have had.
Exactly, Kass doesnt understand the manipulation that goes on. Exactly right that no one would ever get the chance to get the investment he was offered. Sad but that's how the wealthy run the broken system.
Or, alternately, he's accepting the world as it really is and trading/investing/judging accordingly. Isn't that the rational thing to do?
Ahh, the irony of misspelling genius. You think taking a 50% mark against the position was genius? How about the $8B loss on the binary puts he wrote?
Anyone remember this thread?: http://elitetrader.com/vb/showthread.php?s=&threadid=156098&highlight=buffet S2007S, Still sticking to your Berkshire under 25,000 call?