SubscribeWarren Buffett: Genius or Thief?
October 2, 2008
According to Bloomberg and other sources around the web:
Buffett’s Berkshire Hathaway Inc. agreed to buy $3 billion in preferred shares that pay an annual 10 percent dividend and are callable after three years at a 10 percent premium. GE also said it will sell $12 billion in common stock, gathering more cash to fund operations.
Somehow, this is a new program/sales pitch to build confidence in the stock by showing that the world’s savviest investor bought into the company. This is clearly designed to entice investors as the company is looking to raise money through some kind of stock offering. Preferred stock offerings are the latest craze as they do not cause dilution and are seemingly expendable. Is that fair?
Maybe we should look at the sweetheart deal the Mr. Buffet received as a simple endorsement fee. (Goldman Sachs (GS) deal was similar in all regards). Is that fair? Read more
Morgan Stanley’s “Private” Email to RIAs
September 27, 2008
Isn’t it terrible that even before I read this I was looking for where the lies and the manipulative discussions were hidden? I am on high alert as I feel lied to and cheated and surely I am not alone.
Below is a note that appeared in my email this morning and I though that it would be interested to review and dissect. See below with inline comments.
Dear Registered Investment Advisor,
I am writing to update you on two significant announcements that Morgan Stanley made on September 22, 2008. First, the U.S. Federal Reserve approved our application to become a Federal Bank Holding Company. As a result, Morgan Stanley will become the fifth largest Bank Holding Company with almost $1 trillion in assets and will be regulated by the Federal Reserve. Second, we entered into a letter of intent for a global strategic alliance with Mitsubishi UFJ Financial Group, Japan’s largest banking group and the world’s second largest commercial bank with more than $1.1 trillion in deposits.
Good news here as they now have the blessing of the U.S. government to feast on the rotting carcasses of the smaller and regional banks. International companies will continue to have a greater stake in our financial system. Read more
Let them fail, then we will eat the carcass
September 27, 2008
This just in… If you read this carefully, it is a clear and open invitation to take down banks and then scoop up their broken and crushed remains by other banking institutions. WOW! I just thought of this… Goldman Sachs (GS) and Morgan Stanely (MS) are now in the game. I wonder if they will look to bid on Wachovia (WMB) after they are pummeled next week….
This is vulture business tactics at its best… Read more
Emperor Paulson: Bankmaster with absolute power
September 22, 2008
Reckless, gluttonous, disgusting and shocking are only a few of the words that have been used this weekend to describe the amazing bailout of the financial sector. A “mere” $700 billion dollars is the latest figure being bantered about as the sum which will initially be used to liquify the sector. Unfortunately, it does not end there. Ponder this number again for a moment: $700,000,000,000.00. Read more
Interactive Chart - Financial Sector is BIG Loser
September 17, 2008
The Financial sector is down almost a trillion dollars in market cap in under a year. Bailouts may total another trillion or so. The war in Iraq, another trillion.
It seems as though now trillion is the old billion. Nice!
Click below for a great interactive view of; THEN and NOW.
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