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Buffett ain't no dummy....

By
Real Estate Agent with Family Real Estate Services, Inc.

Warren Buffett, possibly a mentor to some of us here, has stepped forward. Some may regard him as antiquated, some maybe as eccentric, but I contend that Warren Buffett has more screws in place than not.

http://globaleconomicanalysis.blogspot.com/2008/02/buffetts-kiss-of-death.html

"Buffett smells an opportunity here and he is likely correct. Furthermore he is not going to make the mistake that both Ambac and MBIA made in insuring CDOs, subprime mortgages, and other toxic waste."

"If the municipal debt was reinsured by AAA rated Berkshire, the borrowers would also retain the top rating, Buffett said. Without AAA ratings, thousands of schools, hospitals and local governments may be forced to pay higher interest and some fund managers would be forced to sell any holdings that lose their top rating."  (emphasis mine)

http://www.bloomberg.com/apps/news?pid=20601087&sid=aAxVkU8yAycM&refer=home

"The risk of bond insurers MBIA Inc. and Ambac Financial Group Inc. defaulting rose after billionaire Warren Buffett offered to assume responsibility for $800 billion of municipal debt, excluding subprime-linked securities."

Lance Winslow
The Car Wash Guy - Malibu, CA
Absolutely, plus is is saving everyone's butt, the entire economy, so he has the backing of the FED, the US Government, the SEC, the insurance industry, the real estate industry, the banking industry. Yep, Warren Buffet is NO DUMMY, when I saw that in the news, I just smiled and said; Brilliant! And thought, oh, now he has been working on this for a while. I knew he was a great chess player, but this move, whooorah! Lance
Feb 12, 2008 06:25 PM
Billie Dalessio
Home Run Realty, LLC - North Haven, CT
I guess that's why he just surpassed Bill Gates yesterday as world's richest billionaire.
Mar 07, 2008 08:05 AM
Michelle Spalding
Transaction Management Consultants - Waco, TX
Time and Money Saving Solutions for Savvy Realtors

A frined of mine quote Buffett just the other day  - he said you know know who is swimming naked until the tide goes out.  He was referring I'm told to the mortgage mayhem.  Loved the quote and had to share.

Mar 07, 2008 08:12 AM
Marzena Melby
Coldwell Banker Burnet Realty - Richfield, MN
Realtor, Twin Cities Minnesota Real Estate
Terry - obviously, he is going to make money on this but he could have set on the sidelines watching the economy go down the drain.  I know some people who hate him. Thank God, someone with resources like his is willing to do this.
Mar 11, 2008 05:02 AM
Terry Kuehn
Family Real Estate Services, Inc. - Tacoma, WA
Self-Directed Roth IRA Associate

Michelle and Marzena, I wonder if people hate the guy or are merely envious. As I just typed that sentence I remembered that I was in the Berkshire website a while back and hit the "store" button and discovered that Berkshire was selling Berkshire Hathaway ball caps. I remember getting ready to click and order one, something came up and I never got back to ordering me a Berkshire Hathaway hat. Me, I'm passively envious of the guy, admire the brilliance that he apparently has, and I definitely want one of those Berkshire hats.

I look at it this way:  if I get me one of those hats, each time I look at the thing or wear it, it will force me to think "Berkshire Hathaway" and that will force me to think "Warren Buffett" and that should force me to think financially conservative with the long haul in mind rather than what all I can make between now and next Thursday.

Maybe I'll add something here about another gentleman I've studied a bit about, a guy by the name of Trammell Crow. I wonder how things would have turned out if Warren Buffett and Trammell Crow would've ever gotten together and began spending money?

Mar 11, 2008 10:06 AM