Buffett to Congress: Bail out economy or face 'meltdown' - CNN

http://www.cnn.com/2008/POLITICS/09/28/bailout.deal/index.html

WASHINGTON (CNN) -- Billionaire Warren Buffett told congressional negotiators that if they can't agree on a proposed financial bailout, the nation will face "its biggest financial meltdown in American history," two sources familiar with the talks said.

Word of Buffett's omen came as House Speaker Nancy Pelosi announced "great progress" in reaching a deal on the White House's proposed $700 billion bailout of the financial system.

Buffett, whom Forbes magazine has placed at No. 2 on its 2008 list of richest Americans, was one of several business experts whose opinions were sought, Sen. Kent Conrad, D-North Dakota, told reporters Saturday.

Buffett is chairman and CEO of Berkshire Hathaway Inc. His wealth is estimated at $50 billion. Buffett was consulted by telephone, Conrad said.

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http://www.fool.com/investing/dividends-income/2008/09/26/why-would-warren-buffett-stoop-so-low.aspx">Why Would Warren Buffett Stoop So Low?

Buffet didn't come out for the bailout UNTIL he was in a position to be rewarded handsomely.

Warren Buffet is a very greedy man. He doesn't speak for regular American workers.

This bailout is an epic scam.

Wall Street is now learning that all they have to do to get the Feds to use our money to make them richer is to shout "fire" in our financial theater. This will not be the last bailout. This bailout will cost trillions of dollars.

This bailout has turned DU into a message board that advocates for the interests of those who don't need our assistance. Comfort the afflicted and afflict the comfortable.

How would you know what Buffett was thinking about the bailout until he had to testify? Who do you think
is one of Obama's top economic advisors on this?

Not all rich people are bad... and Buffett is a very good man of the people. He still lives in the same $400,000
home he moved to when he was newly married and is leaving 95% of his billions to charity after his death (his
kids are getting very little of his fortune, comparatively).

And each of his kids got $1,000,000 (of course they've all become very successful as well and don't even need it) upon his death.

I read a story that when his daughter wanted to remodel her kitchen many years ago when she was still pretty young and didn't have a lot of money she asked her dad if he would pay for it. He said no.. but he'd loan it to her at 1/2 a percent less then what the banks would.. that was a "deal".

I like him... he reminds me of my dad.

I'd love to work for him (I've got an economic background) because I believe in what he's doing and he's a great role model.

Years ago, he bought stock in the company where I worked, and as a result, he was invited to come to lunch with the CEO and the president. He shows up in an off-the-rack suit. The two chief execs are wearing their usual very expensive hand-tailored suits. They're going to take him to lunch at some fancy, exclusive joint, but he insists on going to a world famous greasy spoon down the street from our corporate HQ. Employees were giggling for days at the mental picture of those two very well-dressed men sitting with Mr. Buffett in cheap plastic chairs eating chili dogs.

:shrug:

His support of this gives me pause to consider this.I feel his motivations are good ones.

Thank goodness that congress seems to be listening more to Buffet than to polls.

:toast: :toast: :toast:

as someone pointed out in another thread, the term "bailout" has ignited passions and people are against something they have little understanding of. My understanding isn't great, but I do know that things could get much worse if something isn't done. Without credit things will go downhill fast.

People also don't seem to understand that the current plans aren't the same original Paulson plan that got a lot of media play.

the bailout happening. Duh.

sw

He is worth 50 billion and thinks he should pay a higher percentage than his secretary and he has been outspoken in bringing the discrepancy out into the open.

I trust Buffet as much as anyone on the bail out and the shape of the economy.

If Buffet wants to pay more taxes and feels guilty about being richer than Midas, he can simply write a check to the Treasury.

His portfolio is about as healthy as it's possible to be right now. He can sit on his investment in Goldman for as long as it takes for it to regain value. The rest of the financial world isn't quite that smart.

The markets will force Congress to pass the bill soon enough. It is only a matter of time. The only question is how bad will it get before then

at least compared to some of the other cronies in this matter.

Put into perspective. It would take like a dozen Warren Buffets to bail out this mess. My god.

...I don't know enough about it to have an opinion. I was an English and history major, not a business major - I'm doing good to balance my checkbook (and have on occasions failed at that!) It's complicated even for economists, so I just listened to the debate and tried to understand it (and failed!). I have leaned towards an agreement on it, with and only with the Democrats / Obama's amendments (the 5 points), but only because no one had an alternative plan that anyone said made sense or would work.

But Warren Buffett is not just out for himself, or he wouldn't be supporting Obama and he wouldn't have supported Kerry because he's not necessarily going to benefit to any great degree from a Democratic administration. I've always thought he had the good of the country, and the strength of the economy, as his priorities. So, based on this statement, I'm satisfied that the Dems are doing the right thing... at least for now. It was dangerous - they could've been - and still could be - bazookaed for getting this done if it doesn't work, or turns out to be disastrous. Nobody knows. But I do trust Buffett's assessment of it. I'm - pretty much - sold now.

:(

Credit is gonna dry up on all these companies. The economy will go belly up fast without new capital (money) to invest in new employees or make more products. Some in the GD board want the bailout not to happen but I don't want to go through a depression. And Dodd and others put some good provisions in the bill like oversight.

what IF those people who say we shouldn't do it, are WRONG. What if? That's a mistake I'd rather not deal with later on. It would just be worse. The way I see this is, better safe than sorry. People are so worried that this is a ruse, BUT, what IF it's not. And, yes, I understand the skepticism. But I still say it needs to be done.

and if there's anything to be learned from the past how many years of Republican politics of resentment- it's that tearing things down out of spite almost always harkens bad results for everyone involved.

He did just buy Goldman Sachs for 5 Billion dollars last week on the assumption that the US was going to agree to this bailout.. so he certainly has a very vested interest in seeing this go through.

And since I own a couple of share of Baby B stock... i suppose I should too. I have a feeling that either way it's going to suck... if it goes through I might see some stock go up.. but long term plans and taxes will as well. If it doesn't go through.. it sounds like the economy just implodes.

What a win-win.. :eyes:

ago calling them "time bombs and financial weapons of mass destruction that could harm not only their buyers and sellers, but the whole economic system."


http://news.bbc.co.uk/2/hi/business/2817995.stm

Didn't he call CDOs "weapons of economic mass destruction" a few years ago?