[Marxism] Key Obama backer worth $50 billion profits from taxpayer bailout of Wall Street
shmage at pipeline.com
Wed Apr 8 08:27:20 MDT 2009
On Apr 8, 2009, at 2:04 AM, Duane Roberts wrote:
> "S. Artesian" <sartesian at earthlink.net> wrote:
>> Ah yes, Mr. Buffett, once softly praised right here on
>> this list by an individual or two as being a different
>> sort of capitalist than those scheming bankers; a "value"
>> investor, in the for the long haul...
> I should mention that another reason why Warren Buffett came out
> strongly in favor of a taxpayer bailout of Wall Street has to do
> with the fact he sold about $4.5 billion worth of "puts" in
> international financial markets shortly before the capitalist
> economy started it's downward spiral...Here is how one observer
> summed it up last November: About a month ago Buffett sold about
> $40 billion worth of insurance against the four major indices in
> the world. The European-style
> options (which can only be exercised on their expiration dates)...
> will expire between 2019 and 2027.
So the "downward spiral" only began last November (blame Obama)?
The average duration is from 2008 to 2023. 15 years. That's not a
This is how the FT author analyzed it:
In the long run, this all just shows the absolute short-sightedness of
Wall Street. It’s a fantastic move over the long run. Berkshire just
collected a $4 billion cash infusion which it can use to buy up great
stocks at very low prices and wait out the next decade.
It may seem like an exotic move to some, but once you actually look at
the numbers and risk, it’s actually much more prudent than investors
are willing to give Berkshire credit for over the short-term.
As usual, it looks like Buffett scores another big score in this
turbulent market and it’s only a matter of time until the investment
community realizes it. At this time, if you’ve got a multi-year time
horizon and are using a conservative investing strategy that always
keeps cash on hand for the enticing opportunity to buy lower, I’d
consider starting to look at shares of Berkshire[**]
Is anyone suggesting that if capitalism were to survive another 15-20
years it would do so without a massive inflation of currency and that
this would not be reflected in world stock-market indices?
> This cosmos did none of gods or men make, but it
> always was and is and shall be: an everlasting fire,
> kindling in measures and going out in measures."
> Herakleitos of Ephesos
**Note that BRK is at the moment quoted at a price 20% above when that
article was written.
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