Did Warren Buffett just temporarily "bailout" Bank of America?

Bank of America Shares Jump 23% on Buffett Rescue

Bank of America shares are up 23% to $8.65 in premarket trading, from $6.99 yesterday, on news that Warren Buffett is buying a $5 billion stake.

Remember, $5 billion was the amount Mr. Buffett spent on Goldman Sachs back in September 2008. Just for the record, that did not stop Goldman’s stock price from falling, hard, for a while longer.

Anyway, this news is boosting BofA, and also giving a huge lift to the broader market — Dow futures are now up 84 points.

Let me guess; the FED didn't have any money or enough liquidity to do anything about it? I'm wondering if this move will be enough to rescue the banks for a little while longer while they come up with some clever scheme to save themselves again??? This feels like 2008 all over again.

reply to post by majesticgent


Bank of America is in deep trouble from what I've read here and between the lines in the articles written by the MSM.

I don't know if $5 Billion will be enough to save a bank, the stimulus package in 2008 was $800 Billion and that wasn't enough to save ten banks!!! So, it's only a temporary emergency fix. Some executive called Buffet last night asking for the money, because otherwise the headlines in the Papers would have read, Bank Of America Bankrupt, Today

Originally posted by jjf3rd77
reply to post by majesticgent

 

Some executive called Buffet last night asking for the money, because otherwise the headlines in the Papers would have read, Bank Of America Bankrupt, Today

Where did you hear/read that??

reply to post by Gwampo


It's just common sense, that's how these things happen. I think the documentary Too Big To Fail really is a good visual aid about what really happened during 2008. We were hours away from economic collapse and we are probably days away now.

reply to post by majesticgent


I wonder why all of a sudden we are wondering what the rich are doing with their money?
Is it any of our business or does America control them too
Does it matter that all the "bailout" money paid to keep some of the major players operational was paid back? Or that the money was loaned so that an enormous percentage of middle class Americans who had money invested with those financial institutions would not go belly up along with them. You are saying we should have thrown that baby out and many are repeating the mantra but none of those had their life savings wrapped up in them now did they? Everyone cannot send their money to Switzerland and many of those folks invested in American institutions, go figure. Safer with the Swiss.

No he is in it for his own gain.

You think he doesn't write off those charities on his yearly tax return? lol

Considering JPM is looking to buy out Bank of America, he will profit nicely.

He is no angel.

What worries me is Warren bailed out Goldman Sachs before the first American stimulus bank bail out by Bush, then Warren i am sure received all his money back. So, does Warren by bailing out Bank of America know that possibly the American people will have a round 3 Banker bail out
Thus, receiving his money, plus some

These bankers need to pull their arses out of the clouds, stop blaiming everyone else for their issues, and deal with their own blame with out the American people-others footing the bill

So.. are riots coming to America? end game?

reply to post by majesticgent


Warren Buffett has been, and continues to be a major share holder in BoA. BoA was just found to have laundered billions of dollars for Mexican drug cartels, but naturally that was swept under the rug.

Originally posted by OptimusSubprime
reply to post by majesticgent

 

Warren Buffett has been, and continues to be a major share holder in BoA. BoA was just found to have laundered billions of dollars for Mexican drug cartels, but naturally that was swept under the rug.

Shh! Don't mention drugs around here! People are trying to sleep!

Haha, but seriously, also Wachovia and Wells Fargo had drug money laundering in their "portfolio". So really, you cannot discuss modern economics in depth without discussing black markets. This problem will not be resolved at "conspiracy forums" where drug talk is heavily squashed. Nobody wants to discuss black markets, least of all, W. Buffett.

Eventually the BS shields will drop, and truth will come storming into the courtyard of the castle. But at this time, the gates are holding and truth is kept at bay by the united efforts of the media, the ICANN registrant forums, and the people in power. ...But the hinges on the gate are strained greatly, and as the gate begins to fail, a lot of those sectors will collapse and people will abandon the attempts to hold back truth. Just sit back and watch, it's the most entertaining thing to happen in 2000 years. I can't wait until the gates of lying have fallen, and truth reclaims this castle.

Originally posted by smallpeeps

 

Just sit back and watch, it's the most entertaining thing to happen in 2000 years.

Best advice anyone could give for the coming times...

Be proactive and constructive, not reactive and destructive

Originally posted by jjf3rd77
reply to post by majesticgent

 

Bank of America is in deep trouble from what I've read here and between the lines in the articles written by the MSM.

I don't know if $5 Billion will be enough to save a bank, the stimulus package in 2008 was $800 Billion and that wasn't enough to save ten banks!!! So, it's only a temporary emergency fix. Some executive called Buffet last night asking for the money, because otherwise the headlines in the Papers would have read, Bank Of America Bankrupt, Today

Yeah, BoA is still withholding major foreclosure debt from the general public and their books. When that drops, it is going to be bad.
Buffet will do what Sorros did with the Euro , buy it is mass, then dump it at once. It will collapse.

Yes, and to demonstrate the true horror inside the skulls of our leaders, they destroyed the US housing market, but they will not allow families to shelter inside those inflated, financially wrecked properties.

NO, they would rather sell those properties, to foreign buyers. They will not give the US people, any shelter. Forclosed homes, are the property of the Sheriff and he hates you, and loves his paycheck. So, no shleter in the US.

I think Warren Buffet is a disgusting human being, but he's just another fly on this dogturd called "modern greed". This whole financial system is covered with flies like him, you know like when you see something that looks gold but its actually the golden backs of the flies that you see?. That its actually a dog turd covered in flies?

One "shoo" from the hand of God, and all the flies will leave and the turd will turn to actual gold. That is the power of God. Flies do not congregate on gold bars, they congregate, on dog turds. But a turd covered with flies, does appear gold in the right light.

If there is going to be no QE-3, cash strapped citizens will be forced to use credit cards from BOA to survive.

Thus banking Buffett more than disclosed in Annual Dividends...and stock Value.

Insider Knowledge of what's to come...he got it from someone.

This is an interesting article I found. It's saying that because the fed failed with quantitative easing they have to go to private capital to keep the market afloat.

www.zerohedge.com...

the fact that TPTB are resorting to Uncle Warren for everything now may mean the Fed is out of the game. No one has confidence in the Fed to come save the day so they need the next thing.

Was it Buffett who called for more taxes on the likes of himself and other billionaires? Perhaps this bailout was him exercising his tax-pay hype with action?

For those who haven't seen it already, Berkshire Hathaway agreed to invest $5 billion in Bank of America this morning. The pop in stocks lasted all of 30 minutes.

But I wanted to discuss the last Buffett Bailout - of Goldman and what it may portend. My operating thesis is that WB has morphed into a completely political creature and will only make big, publicized investments for propaganda purposes. That certainly was the case with GS in 2008.

But like any actor, he has to receive something in return for the use of his name and image. That something is a political guarantee for his "investment" and the history of 2008 supports this. Buffett's deal with Goldman was announced before the US market opened on September 23, 2008. But behind the scenes a lot of political moves were being made that he obviously knew about but few others did at the time.

The Fed of course was involved. Over the next few days (through 9/29) they established or increased swaplines with a large number of foreign central banks. In effect they lent out $360 billion to foreign banks. The FDIC closed Wachovia and WaMu - pushing them to merge into the already bloated and insolvent Citibank and JP Morgan respectively. Wells ultimately outbid Citi for Wachovia. The Treasury moved to guarantee all money market funds and the TARP bailout was cooked up as a bill and submitted to the House over the weekend prior to initial rejection on the 29th.



My point is this. Last time Buffett was part of a full-court press designed to fool people into investing their earned money right along side his borrowed bank credit. Every lever was pulled by Wall Street and the Government in order to "restore confidence" and as the price of his participation, Buffett was given the privilege of front running virtually every central bank and government policy change.

I expect this time will be no different. The Fed is likely to announce something desperate and stupid tomorrow morning. It will likely be accompanied by something out of the Treasury and/or FDIC shortly thereafter if the Fed move proves insufficient to pump asset prices higher and bail out Warren after he stuck his neck out financially for favorable propaganda effect.

Of course the bad news if you're a bull is that it didn't work in 2008 despite truly extreme measures. Stocks, after a short sharp bounce continued to fall for another 6 months and housing prices merely rebounded slightly before resuming their decline. In 2008, stocks had already been falling for a year and had nearly been cut in half before they got that desperate. This time, we are 3.5 months past the rebound high and six weeks from the secondary peak. We are also only 15% off those highs - not 45% like in 2008.

There is probably a trading opportunity on the long side for the next week or two but I'm not going to get greedy or stupid. History indicates that Buffett is likely front-running SOMETHING here. But is sure as hell isn't fundamentals.

reply to post by Abney


Bravo!

I couldn't have said it better myself. It is all a game, but the players know that their time is running short, so now it's time to prepare the instructions and establish who will be playing the next game.

Sad thing is, the majority of the people within the clutches of this power/wealth scheme are just pawns in their plans. Financial warfare at it's finest and when the dust settles we'll all know, clearly, who the victor(s) are.