Edmund Storms wrote:
You need to remember that Warren Buffett is heavily invested in the financial industry. Consequently, he is going to benefit from the bailout.
I have no idea where Buffett has put his money, but I doubt that he has any invested in real estate funds. He has been saying for years that they are economic insanity. If he has nothing invested in them, then he will not benefit directly from the bailout. He will benefit indirectly, along with the rest of us, if it works. In other words, if he has no stake in any real estate CDOs then his views are disinterested, and should not be suspect any more than the views of any other concerned citizen or knowledgeable businessman.
Buffett is referenced in the radio program, with his name spelled wrong, on p. 3:
"Alex Blumberg: So, a CDO is sort of a financial alchemy. Jim takes that toxic stuff, these low-rated, high-risk tranches, puts them all together. Re-tranches them, and
presto: he has a CDO whose top tranche is rated AAA, rock-solid, good as money. If this seems too good to be true to you, you're in good company. Guys like billionaire investor Warren Buffet said the very logic was ridiculous." - Jed
