'It was announced today that Warren Buffett is propping up Bank of America with $5B only days after they claimed they didn't need any capital. Here's the spin in the mainstream media:
"This proves to the market that if the bank needs additional capital, which we don't believe they do, but if they needed to calm the market by raising capital, they could do it within 30 minutes with a quick call to Uncle Warren," said Sean Egan, managing principal of Egan-Jones Ratings.
Warren Buffett to Invest $5 Billion in Bank of America http://finance.yahoo.com/news/Warren-Buffett-to-invest-5-rb-4173223408.html
Now for the truth...
On Monday, likely after the urging of Tim Geithner and Bill Daley, Obama made an emergency call to Buffett to beg him to help prop up the system for a bit longer.
Obama Calls Buffett, Mulally http://blogs.wsj.com/washwire/2011/08/22/obama-calls-buffett-mulally/? mod=google_news_blog
Their short term idea was to get Buffet to "add legitimacy" to Bank of America so they can go to the market to get more desparately needed cash.
It won't work for long. That $5B is a very small finger in a very large dike holding back $52T in derivative sludge!
September is sure to be a month to remember!
PS - The latest Gold/Silver slam is a side show and will end quickly. If anything it allows you to make your last physical metal purchases before the shit REALLY hits the fan.
May the Road you choose be the Right Road.
Bix Weir www.RoadtoRoota.com'>It was announced today that Warren Buffett is propping up Bank of America with $5B only days after they claimed they didn't need any capital. Here's the spin in the mainstream media:
"This proves to the market that if the bank needs additional capital, which we don't believe they do, but if they needed to calm the market by raising capital, they could do it within 30 minutes with a quick call to Uncle Warren," said Sean Egan, managing principal of Egan-Jones Ratings.
Warren Buffett to Invest $5 Billion in Bank of America http://finance.yahoo.com/news/Warren-Buffett-to-invest-5-rb-4173223408.html
Now for the truth...
On Monday, likely after the urging of Tim Geithner and Bill Daley, Obama made an emergency call to Buffett to beg him to help prop up the system for a bit longer.
Obama Calls Buffett, Mulally http://blogs.wsj.com/washwire/2011/08/22/obama-calls-buffett-mulally/? mod=google_news_blog
Their short term idea was to get Buffet to "add legitimacy" to Bank of America so they can go to the market to get more desparately needed cash.
It won't work for long. That $5B is a very small finger in a very large dike holding back $52T in derivative sludge!
September is sure to be a month to remember!
PS - The latest Gold/Silver slam is a side show and will end quickly. If anything it allows you to make your last physical metal purchases before the shit REALLY hits the fan.
May the Road you choose be the Right Road.
Bix Weir www.RoadtoRoota.com
