Volcker mixed the koolaid. He was simply thrilled that someone cared enough to wheel him out of the nursing home.
Okay, that was funny. What about guys like Buffett and Soros? I don't think that their funds were in direct danger of collapse, and the hedge fund sector was certainly not at the trough. What was their angle? Would Soros and Buffett have been brought down by any indirect exposure? Serious question, since I don't know what their holdings were at the time.
Perhaps the netting on the CDS exposure? Do you have any idea how big a problem that was/is? Buffett lost many billions on his short put marks, and was short CDS as well. I dunno, maybe these guys are the true altruists, you think?
Hard to say, but judging by their philanthropy and general politics, my guess is more so than most here. As an aside, what do you think would have been the likely consequence of just letting the cards fall where they may at that juncture? Again, serious question.
the gov't got the shares at firesale price at the low of deep crash of 2009 after a 50%-90% share dilution. citigroup was once a $50/stock paying 5% dividend.
the gov't doesn't tell you they are 2 trillion in debt. as for the money...the money used to buy the shares were borrowed money or phantom money from the fed...the gov't doesn't need the profit..it can print money and taxes. if the gov't want to profit just cut spending ...the gov't has a 500 billion deficit..12 billion is chicken sh##T^
one upon a time i've heard some words of wisdom...here, on ET(can't believe this)... the man said that if you see a big size on either bid or ask-you only see it,because somebody want you to see it... i think same "principles" applies here..right around time,when RP could actually have chance to audit the fed..right around time,when many people are angry about QE2..see? the FED is making the money..for you and me!