Can you believe what this LIBERAL has done!!!!! The nerve!!!!!!!
[QUOTE]Buffett invests $5 billion in Bank of America
NEW YORK (AP) — Warren Buffett is coming to the rescue of another fallen giant.
Buffett's Berkshire Hathaway announced Thursday that it would invest $5 billion in Bank of America Corp., giving a much-needed vote of confidence in the struggling bank.
The bank's stock had plunged 52 percent in the past year on concerns over the bank's mortgage problems and worries that it would have to sell large amounts of stock to shore up its balance sheet.[/QUOTE]
[QUOTE=bitonti;4117206]they say buffett made 1.7 B on his 5 B dollar bet today
meanwhile the gold bubble just popped, those bugs scattered quickly...[/QUOTE]
The gold bubble "popping" is relative - after all it wasn't that many years ago that it was under US $300 an ounce.
However, what gold bugs wont tell you about gold is that during times of deflation, it will crash in price along with everything else. So, for example, during the GFC it dropped 25% in price, and would have dropped much further without the inflationary impulse of global printing presses starting up in order to stimulate flagging economies across the world.
Gold does much better in inflationary times - this supposed thing it has of being a "hedge" during bad times is a total furphy. If another deflationary event hits, even bigger than the GFC (which is likely), gold will crash in price along with real estate, share markets, oil and whatever else you care to name.
The only times gold has done well during recessions was during the times of the gold standard, when it was effectively a currency, and also during the 1970's recessions which were marked by rampant inflation.
During a bad recession the only place to be really is cold hard cash.
This is the way it is supposed to work!!! Private investors taking a "chance" with their own money on a company. He made money on the deal in the first day. Is Warren Buffet investing in a company really news? That is what he does. This is why taxes should remain low, so private investors can invest rather than giving tax payer money away to prop up companies! And we should stop corporate subsidies and bail outs.
[QUOTE=BushyTheBeaver;4118127]As in the American dollar? Are you on glue?[/QUOTE]
I'm in Australia, but I'd rather have my money in US $ than gold if there is a bad recession. Of course, that eventuality would prompt the US Fed to send the money-printing presses into overoveroverover drive, in which case the flood of liquidity would cause the US $ to plummet in price (ie, cause inflation) and the price of gold to go ^ ^.
Look what happened to the US $ at the time of the GFC - it jumped rapidly in price compared to other currencies and precious metals.
[QUOTE=pauliec;4117302]I'm starting to think Buffet is an attention whore.[/QUOTE]
Dodd/Frank is killing the last bulge bracket true American bank. Their CEO, Brian Moynihan, diesnt have much credibility now...after telling the world for the past month that they didn't need to raise capital. Now a sweetheart deal for Obama butt buddy Buffet. My prediction: Buffet loses $$ on this one, as bofa will be forced to raise ADSL capital...prob w an equity offering at around $5 per share.
He talked to obammy the night before he bought. I'm sure he was assured that his $$$ would be safe(with interest) via bailout or other wise. Biggest presidential failure and the most corrupt evah, move over U.S. Grant and Jimmuh Caaatah, Daddy Barack has taken over your ignominious distinction.