October 19, 2007

Here's Warren Buffet on the big banks' desperate and sneaky attempt to keep the mortgage meltdown reality off their balance sheets

He also said he had no interest in buying failing REIC companies like Countrywide and Hovnanian, who he still sees today as "overvalued".

Yes, I love Warren Buffet. Want to protect your money? Just buy Berkshire.

Buffett said he was skeptical about the U.S. Treasury's plan to create an $80 billion fund to buy distressed assets from structured investment vehicles linked to home lending.

``I don't see any way that pooling a bunch of mortgages, changing the ownership, is going to change the viability of the mortgage instrument itself -- whether people can make the payments,'' he said. ``It would be better to have them on the balance sheets so everyone would know what's going on''


Anonymous said...

Yup, it reminded me of that fellow poster here who said that, after a back of the envelope calculation, that the was "just a bit" under on his home. Like anyone knows the real value of anything right now.

Do we really know how much a home is worth these days? We don't even know how many illegals are in the country, the real inflation rate, or what the unemployment is. This system is totally rigged beyond fix. Good luck investing in a market like this. So for all of you out there thinking that you are "just bit under" on your home, wake up!

jorghis said...

so after all that talk about "dont buy american stocks the dollar is collapsing" you want to buy berkshire? That doesnt make sense. If you are correct and the dollar is falling apart then berkshire stands to lose a lot and Warren Buffet has said this many times.

LauraVella said...

It was expensive, but I should have bought Berkshire Hathaway stock in 1998 when it was $7,000 a share.

brokersleaveyoubroke said...

The purpose of this plan is to buy securities at face value so banks dont have to sell them at market value and take a loss. This is the indisputable truth about this plan in spite of the BS that paulson and the media feed us. They're going to pay more for the securities then the securities are worth to keep the price from falling. If this is the best plan they have we're in big trouble.

Anonymous said...

seems like if you want a bad stock to go up you just mention he might be interested in it.


Anonymous said...

If Buffet were a Jewish immigrant, the right wing noise machine would be swiftboating him like George Soros, calling him a communist(!) anti-American surrender-monkey scum.

Anonymous said...

About this 80 billion thing, didnt they tried it when the stock market collapsed leadin to the great depression? Did it work?

II feel sorry for the US. The dollar is crumbling. Let´s just hope that China and other foreign dollar hoarders don´t start getting rid of it... The dollar is still the worlds currency buut it wont hold on tradition alone.

Real estate has got to be the most unproductive investment ever. The value of a property should be the utility it provides. Anything beyond that is just "made up" value.