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[Hugh Janis]

buffet to buy ge perferred, 3 billion investment

That might get him to the sweet 16 

[miker]

I hear he has got a few bucks..Like a shopping spree lately!

[SPIDERMAN]

Every day, some politician or somebody says something on the idiot box that gets me worked up over this. Yesterday a GOP senator said to Chris Matthews that the $700 billion amounted to $6,800 for every man woman and child in the country. Now I'm not going to get out the latest census reports and do the math, so for the sake of discussion we'll go with that. At the beginning of the year, $300 to every taxpayer was supposed to give the ecomomy a boost and get things going again. That's every taxpayer which is I believe only about 1/3rd of the population. So given that stratagy, why wouldn't given everybody in the country $6,800 sent the ecomomy into orbit ? I know, rather simplistic I agree, but my point is based on what FDR did during the Great Depression with the CCC and WPA. Rather than bail out Wall St, the government put people to work. Since the Chicken Little tag line for this current crisis is that it will create massive unemployment etc etc, why not spend the taxpayers money on the taxpayers. I don't have a clue and one thing I found interesting on Hardball yesterday was Chris Matthews asking Tom Delay to admit that nobody in Washington truly understands what happened, why, how, who etc so they are relying on the very people who are responsible for the mess in the first place for advice on how to fix it.

Just my rambling thoughts for the day

B B

[VAZHOG]

buffet to buy GE perferred, 3 billion investment

Yes, he got "Preferred stock" with a 10% Guarantee.

GE will now Issue 12 BILLION additional shares of common Stock to raise Capitol, which means that will dilute the current value of GE to about $2.00 a share when they are flooded onto the market.

[Free]

Every day, some politician or somebody says something on the idiot box that gets me worked up over this. Yesterday a GOP senator said to Chris Matthews that the $700 billion amounted to $6,800 for every man woman and child in the country. Now I'm not going to get out the latest census reports and do the math, so for the sake of discussion we'll go with that. At the beginning of the year, $300 to every taxpayer was supposed to give the ecomomy a boost and get things going again. That's every taxpayer which is I believe only about 1/3rd of the population. So given that stratagy, why wouldn't given everybody in the country $6,800 sent the ecomomy into orbit ? I know, rather simplistic I agree, but my point is based on what FDR did during the Great Depression with the CCC and WPA. Rather than bail out Wall St, the government put people to work. Since the Chicken Little tag line for this current crisis is that it will create massive unemployment etc etc, why not spend the taxpayers money on the taxpayers. I don't have a clue and one thing I found interesting on Hardball yesterday was Chris Matthews asking Tom Delay to admit that nobody in Washington truly understands what happened, why, how, who etc so they are relying on the very people who are responsible for the mess in the first place for advice on how to fix it.

Just my rambling thoughts for the day

B B

You bring up a good point. Why not try and help from the bottom up instead of the top down. if we want to help, then help those who are suffering from the housing issue. Perhaps give tax credits or other help to those that lose their home and help them find alternatives etc. - rather than helping the large wall street firms. i think the government can help with the run on banks by agreeing for a short period of time to guaranty higher amounts of deposits and all money markets and then longer term helping the weak banks find a home.

Free

[Free]

Yes, he got "Preferred stock" with a 10% Guarantee.

GE will now Issue 12 BILLION additional shares of common Stock to raise Capitol, which means that will dilute the current value of GE to about $2.00 a share when they are flooded onto the market.

Buffet didnt get a guaranty. he bought preferred stock with a 10% dividend and a prepayment penalty of 10%.  The preferred stock is not a debt obligation - its permanent capital. It has risk.
the upside is the warrant he recieved.  I suspect his play was that he buys into the brand leader in a era where they will be deleveraged and he can play the recovery. Whether that turns out to be a good bet, time will tell.

Free

[SPIDERMAN]

Not a fan of Buffet after hearing him say once that if you couldn't afford to pay cash for something then you shouldn't buy it. He was serious, saying that people should not have credit cards, car loans etc. He claimed our status as a debtor nation would be our downfall. Now I suppose from a purely estoteric standpoint, I could consider that point of view, but it is incredibly simplistic for the largest player in the game. The only thing he favored was home mortgages. As such, I can't help but find this to be extremely arrogant coming from the World's second richest person. Why would he consider borrowing money for anything when he has more capital than most banks are capitalized at ? Who knows, maybe his point was simply that we should get off the credit trough, but Jimmy Carter tried to force the country into that with insane economic policies backed up by the FED and we all know the disatrous outcome of that adventure Like it or not we are a debtor nation. Again, just some more rambling thoughts, but we are hearing from all quarters on this crisis and I think it's important to have some background on those offering up advice and solutions. I saw a brief interview with Bill Gates last week and got the impression that he felt the market should be allowed to right itself without government intervention. Interesting point of view wouldn't you agree coming from a person that hemorages money every time the DOW drops 100 points let alone nearly 800. Oh yeah and another rambling thought. T Boone Pickens ads for Natural Gas. No doubt Mr. Pickens owns a huge stake in the natural gas industry. All of these cowboys offering to come to the rescue, all of them with extra wide saddlebags on their horses to carry off the loot.

B B

[hunter]

Every day, some politician or somebody says something on the idiot box that gets me worked up over this. Yesterday a GOP senator said to Chris Matthews that the $700 billion amounted to $6,800 for every man woman and child in the country. Now I'm not going to get out the latest census reports and do the math, so for the sake of discussion we'll go with that. At the beginning of the year, $300 to every taxpayer was supposed to give the ecomomy a boost and get things going again. That's every taxpayer which is I believe only about 1/3rd of the population. So given that stratagy, why wouldn't given everybody in the country $6,800 sent the ecomomy into orbit ? I know, rather simplistic I agree, but my point is based on what FDR did during the Great Depression with the CCC and WPA. Rather than bail out Wall St, the government put people to work. Since the Chicken Little tag line for this current crisis is that it will create massive unemployment etc etc, why not spend the taxpayers money on the taxpayers. I don't have a clue and one thing I found interesting on Hardball yesterday was Chris Matthews asking Tom Delay to admit that nobody in Washington truly understands what happened, why, how, who etc so they are relying on the very people who are responsible for the mess in the first place for advice on how to fix it.

Just my rambling thoughts for the day

B B

Just a simple calculation:

Population 300 million (if not more)
$700 billion divided by 300 mil:

700,000,000,000 / 300,000,000 = $2,333.33
Were did he come up with $6,800?
It's that sort of math that got us where we are.

[grc]

Just a simple calculation:

Population 300 million (if not more)
$700 billion divided by 300 mil:

700,000,000,000 / 300,000,000 = $2,333.33
Were did he come up with $6,800?
It's that sort of math that got us where we are.

Yup, we've got your old math, we've got your new math, and then we've got the "trust me, I'm from the government" math, which is obviously similar to the "trust me, I'm a big investment banker" math.  When people get used to spending other peoples money with impunity I guess they don't worry too much about being precise.

Jerry

[sadunbar]

Every day, some politician or somebody says something on the idiot box that gets me worked up over this. Yesterday a GOP senator said to Chris Matthews that the $700 billion amounted to $6,800 for every man woman and child in the country. Now I'm not going to get out the latest census reports and do the math, so for the sake of discussion we'll go with that. At the beginning of the year, $300 to every taxpayer was supposed to give the ecomomy a boost and get things going again. That's every taxpayer which is I believe only about 1/3rd of the population. So given that stratagy, why wouldn't given everybody in the country $6,800 sent the ecomomy into orbit ? I know, rather simplistic I agree, but my point is based on what FDR did during the Great Depression with the CCC and WPA. Rather than bail out Wall St, the government put people to work. Since the Chicken Little tag line for this current crisis is that it will create massive unemployment etc etc, why not spend the taxpayers money on the taxpayers. I don't have a clue and one thing I found interesting on Hardball yesterday was Chris Matthews asking Tom Delay to admit that nobody in Washington truly understands what happened, why, how, who etc so they are relying on the very people who are responsible for the mess in the first place for advice on how to fix it.

Just my rambling thoughts for the day

B B

This taxpayer didn't get chit...   

Now they claim the majority of folks that did receive a check used it to pay down debt or saved it (which was prudent), so the effect on the economy isn't what they projected it would be.  Says a lot of the quality of the projection!

[RJ749]

This taxpayer didn't get chit...   

Now they claim the majority of folks that did receive a check used it to pay down debt or saved it (which was prudent), so the effect on the economy isn't what they projected it would be.  Says a lot of the quality of the projection!

Add me to this list (didn't get chit)

[hunter]

Add me to this list (didn't get chit)

We got $200 total (family of 5).
 

[Sean M Cary]

We got $200 total (family of 5).
 

I guess its good to be low on the tax scale?  I got like 1200 or something...

[iski]

Payoff as in return on equity amy reach 10 years, not to production....Spuddin an average well nowadays, I'd take a wag, at anywheres 10-100 mill based on depth. 

At nominal production rate, declining market condition the return on equity could run that high..prolly not but could.

Chevron's Deep Water gulf find(found last year) will cost a cool billion to spud, 10 years to reach fruition and with no guarantees.

I get a little crampy when I hear whining over "big oil" profits.
Profit margin is defining factor in business ..Oil, 6-8 points..Insurance 20-30, Investment banking was the same....tell me who makes more.. all this ranting is just me, I am out of coffee..

I love fossil fuel! 

Yeah, I don't hate big oil either for their profits since duh they are in line with other commodities. But if you point that out the demagogues go on demagoguing and there is a lot of money to be made in demagoguery these days.  i should have been a demagogue mebbe but did not study that in school but some of the profs tried to teach it to me anyway.

Hope you got some coffee.




Oh yeah, I got about a brazillion dollars in the freebie gummint money & used it to buy some toothpicks and beer.

[SPIDERMAN]

Haven't seen the bill the Senate just passed, but I'm catching snipets of stuff about porkbarrel projects stuffed into it to get it passed. I know, I know I've got to be the only guy in America that thought just this once they might do a straight deal.

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