Buffett says economy needs immediate help

Discussion in 'Wall St. News' started by S2007S, Oct 2, 2008.

  1. S2007S


    Wonder if he is worried about his last 2 investments in GE and GS...

    Buffett says economy needs immediate help
    Thursday October 2, 10:27 am ET
    By Josh Funk, AP Business Writer
    Buffett says financial crisis is an 'economic Pearl Harbor' that needs immediate counterattack

    OMAHA, Neb. (AP) -- Billionaire investor Warren Buffett said the nation has been hit with an "economic Pearl Harbor," and the government must respond quickly.

    Buffett talked about the nation's ongoing financial woes in an appearance on the "The Charlie Rose Show" that aired Wednesday night on PBS stations.

    "This really is an economic Pearl Harbor," Buffett said. "That sounds melodramatic, but I've never used that phrase before. And this really is one."

    Buffett's spokeswoman did not immediately respond to messages left Wednesday afternoon and Thursday morning.

    Buffett said the nation's economic problems are already starting to be felt by furniture and jewelry stores such as the ones owned by Buffett's company, Berkshire Hathaway Inc.

    The billionaire predicts that the rest of the "Main Street" economy will start to have problems if the government's financial bailout plan doesn't pass Congress soon.

    "In my adult lifetime, I don't think I've ever seen people as fearful economically as they are now," the 78-year-old Buffett said.

    The fear in the marketplace has allowed Buffett to make several sizable investments over the past month in proven companies that needed cash quickly. And Berkshire, which had $31.2 billion cash on hand at the end of June, was ready to invest because, Buffett says, he always tries to be greedy when others are fearful.

    Berkshire, based in Omaha, Neb., announced Wednesday afternoon it would buy $3 billion of preferred shares of General Electric Co., which carry a 10 percent dividend. The terms are similar to those Buffett struck with Goldman Sachs last week when Berkshire invested $5 billion in preferred Goldman Sachs shares with a 10 percent dividend.

    Berkshire also has the option to buy $3 billion worth of GE common shares for $22.25 each and an additional $5 billion in Goldman Sachs common stock for $115 per share at any time over five years.

    Buffett said he was approached about the GE investment Wednesday morning by someone at Goldman. And Buffett quickly decided to invest in GE because he's familiar with the company and confident in its long-term prospects.

    "It was an attractive investment," Buffett said.
  2. Help the economy, because Buffett is long... for the long term. "Be greedy when others show fear", was it?
  3. I do not see anyone begging on the streets that I travel.

    I turn on CNBC, and it is open line for billionaires begging for a Gubmint bailout.

    One day it is Buffy getting a full ego massage from Becky Quick and the boys and the next day its T Boonie hand wringing and crying over his portfolio.

    In the 21 st century, a economic crisis is defined by shameless BEGGING BILLIONAIRES.
  4. What a putz. 700 billion isn't help???
  5. rros


    He needs inflation (or the government to reflate). Remember his 4.5 billion in puts expiring 11 to 15 years from now? Not a very long term considering the Nikkei did nothing in almost 18 years... still down 70% from its peak.
  6. AK100


    Personally I think Buffet was ordered to invest in GS as a nice soundbite to calm the market down.

    Of course, he demanded great terms and got them.
  7. I say Buffett just trusted a politician's trading tip and is taking it up the ass for millions.
  8. Mort Zuckerman is a billionaire. He is now on CNBC. He is not supporting the bailout.

    He disclosed on last week's Mc Lauglin's Report that he had peen paring down his portfolio for over a year and into cash.

    Wilbur Ross was on CNBC this morning and he really did not take much of a position on the bailout.

    He was not begging for a bailout.

    I guess all billionaires are not beggars who are looking for privatized profits and subsidized losses.
  9. "Soros Says Paulson's Financial-Rescue Plan Is `Ill-Conceived"

    Sure, easy for him to say but this plan isn't about a bailout of Wall Street anymore, a vote now is a vote for relief of the wooden arrow tax that singles out children.
    #10     Oct 2, 2008