Count one of Hillary Clinton’s biggest financial backers, billionaire Warren Buffet, among the biggest fans of the “Trump rally.”
In an interview with Charlie Rose recorded on Friday, Warren Buffett said that since the election day, Berkshire Hathaway bought $12 billion in stock. This was a change in strategy for Buffett, who as it turns out was a net seller in the first nine days of the month, when Hillary seemed like a guaranteed winner in the November election, one which Buffett was selling into.
“We’ve, net, bought $12 billion of common stocks since the election,” he said in an interview with Charlie Rose that aired on Friday. Buffett didn’t identify the securities that he picked. As of Sept. 30, Berkshire had an equity portfolio valued at $102.5 billion. Continue reading »
Continue to prepare for collapse. (And maybe support this website if you can.)
Just when you think this election could not get more ridiculous, with even the Simpsons endorsing Hillary as President, the king of crony capitalism Warren Buffett has offered to drive voters to the polls in November.
According to NBC, Buffett pledged to “take at least 10 people to the polls who otherwise would have had difficulty getting there” on November 8, challenging his congressional district to “give America a civics lesson. Buffet said he even reserved a trolley called “Ollie” Monday. “It seats 32, I’m gonna be on it all day, I’m gonna be doing selfies, whatever it takes.” Where have he heard that last phrase before? Continue reading »
There’s something about being insanely rich that people will believe every word that comes out of your mouth no matter how bizarre.
And no, I’m not talking about Donald Trump. Warren Buffett is an even better example.
As one of the richest men in the world, Buffett’s opinions carry almost Biblical impact, even when they might be completely ridiculous. Continue reading »
It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.
– Warren Buffett
* * *
He walked them through Clayton-built homes on the lot, then into the sales center, passing a banner and posters promoting one subprime lender: Vanderbilt Mortgage, a Clayton subsidiary. Inside, he handed them a Vanderbilt sales pamphlet.
“Vanderbilt is the only one that finances on the reservation,” he told the women.
His claim, which the women caught on tape, was a lie. And it was illegal.
In minority communities, Clayton’s grip on the lending market verges on monopolistic: Last year, according to federal data, Clayton made 72% of the loans to black people who financed mobile homes. Continue reading »
All you need to know about Warren Buffett can be gleaned from this one sentence he uttered in a Bloomberg interview earlier this year:
Clinton has a vision for America that’s very similar to mine.
Indeed, and that vision is one of crony capitalism and oligarchy. Two things both Buffett and Hillary have a long history of supporting.
As such, he’s busying running a $33,400 a plate fundraiser for this faux populist, along with the President of private equity giant Blackstone. Blackstone, of course, is one of the firms that benefited most from the Obama administration’s banker bailouts, by quickly buying up all the foreclosed homes only to turn around rent them right back to the peasants who were evicted. Here are a few articles on the topic to get caught up. Continue reading »
Warren Buffett – billionaire investor, opposer of Citizens United but major donor to super-PACs, previous fan of Bernie Sanders, and vehement supporter of the ‘fairness doctrine’ on taxes for everyone but himself – will be joining ‘campaigner for everyday Americans’ Hillary Clinton as she stumps in Omaha this month.
In May 2015, Buffett backed Hillary…
Billionaire investor Warren Buffett is backing Democratic front-runner Hillary Clinton in the 2016 presidential election.
“I think that she is the most likely person to be president of the United States, elected in 2016, and I’m going to vote for her,” Buffett tells the Fox Business Network in an interview that will air Monday evening. Continue reading »
In a “difficult but necessary” decision, Kraft-Heinz will cut 2,600 jobs in the latest post-mega-merger “synergy” bloodbath. Thanks Warren.
Back in August, we said “thanks uncle Warren” on the heels of reports which indicated it was time for Kraft employees to do their part to facilitate merger “synergies” in the wake of the Kraft-Heinz tie-up engineered earlier this year by everyone’s favorite folksy octogenarian billionaire along with 3G.
In short, Kraft Heinz said it would lay off 700 workers at Kraft’s corporate headquarters in north suburban Northfield, part of a cost-cutting plan that would slash the combined entity’s headcount in the U.S. and Canada by 2,500 jobs.
Well, on Wednesday we got more of the same with CNBC reporting that Kraft Heinz will close seven plants and lay off 2,600 employees. The company is also reportedly moving Oscar Mayer to Chicago from Wisconsin. Here’s what we know so far: Continue reading »
– “Some People Just Don’t Fit In The Economy” Buffett Explains: “We’ll Send Them Off To Afghanistan” (ZeroHedge, Sep 8, 2015):
Not to be outdone by his partner Charlie Munger (who offended many with his comments that “gold is a great thing to sew onto your garments if you’re a Jewish family in Vienna in 1939,”), Berkshire Hathaway’s Warren Buffett – having already taken on Europe, comparing Greece to a “dog peeing on the carpet” of Europe,
suggesting Germany stop “rewarding behavior you want to get rid of” – takes aim at the military. Speaking on Bloomberg TV, the octagenerian oracle of offense just unfriended every American veteran…“You want everybody educated to their potential. You want people to reach their potential. That still won’t work for some people in a highly developed market system.
I mean if this were a sports-based system, you could give me a PhD in football, and I could practice eight hours a day, and I might be able to carry the water from, not onto the field, but from the locker room to the bench. There’s just some people don’t fit well into a highly skilled market-based economy.
They’re perfectly decent citizens. We’ll send them off to Afghanistan, but they are not going to command a big price.” Continue reading »
– Uncle Warren Strikes Again: Kraft Heinz Cuts 2,500 Jobs (ZeroHedge, Aug 12, 2015):
Thanks, Uncle Warren.
The Kraft-Heinz merger engineered earlier this year by everyone’s favorite folksy octogenarian billionaire along with 3G will cost some 2,500 people their jobs, as the combined entity looks to cut costs.
CEO (and 3G partner) Bernardo Hees has already slashed jobs on the Heinz side of things, so now it’s apparently time for Kraft employees to do their part to facilitate merger “synergies.”
– Bank Of England Exposes US Cronyism: Questions Why Buffett’s Berkshire Hathaway Is Not Too Big To Fail (ZeroHedge, April 20, 2015):
If you thought currency-wars were a problem, just wait until crony-wars begin. In a stunning show of disagreement among the omnipotent, The FT reports that a Freedom of Information Act request has confirmed The Bank of England wrote to US authorities seeking clarity about Berkshire’s absence from a provisional list of “systemically import” (Too Big To Fail) financial institutions (SIFIs). The US Treasury declined to comment…
With MetLife suing the US government to try to escape being deemed systemically important by Washington (which means the firm may need to hold more capital to cover unexpected losses and could face a requirement to draw up “living wills” to make them easier to wind down in a crisis), The FT reports on questions over Berkshire Hathaway’s status…
British regulators have challenged their US peers over their apparent reluctance to subject Warren Buffett’s Berkshire Hathaway to tougher scrutiny as part of a worldwide push to make the financial system safer. Continue reading »
– Warren Buffett the Slumlord – Predatory Loans, Kickbacks and Preying on the Poor at Clayton Homes (Liberty Blitzkrieg, April %, 2015):
The disastrous deal ruined their finances and nearly their marriage. But until informed recently by a reporter, they didn’t realize that the homebuilder (Golden West), the dealer (Oakwood Homes) and the lender (21st Mortgage) were all part of a single company: Clayton Homes, the nation’s biggest homebuilder, which is controlled by its second-richest man — Warren Buffett. Continue reading »
– Dramatic Explosion Footage: Warren Buffett-Owned Oil Freight Train Derails, Bursts Into Flames (ZeroHedge, March 5, 2015):
It wasn’t the vetoed Keystone XL pipeline which exploded today: it was a tanker train carrying 103 trains of oil and belonging to none other than Obama’s tax advisor, Warren Buffett, that ended up in a dramatic fireball in the middle of rural Mississippi.
– Buffett On Europe: Germany Must Stop Greek Dog Peeing On Its Carpet (ZeroHedge, March 3, 2015):
Not to be outdone by his partner Charlie Munger (who offended many with his comments that “gold is a great thing to sew onto your garments if you’re a Jewish family in Vienna in 1939,”), Berkshire Hathaway’s Warren Buffett decides to take on Europe (and The Big Lebowski), and particularly the Greeks in today’s ‘perhaps it’s time to just STFU’ moment. Responding to questions about Europe’s future, Buffett compares Greece to a “dog peeing on the carpet” of Europe, suggesting Germany stop “rewarding behavior you want to get rid of.”
* * *
Quick question – just how far does one go to ‘punish’ the peeing dog before Animal Cruelty is called? Continue reading »
– “Tax Me More” Buffett To Finance Burger King’s Tax Inversion Deal (ZeroHedge, Aug 26, 2014):
President Obama would have proudly proclaimed Warren Buffett a true patriot in his bailing out of the banking system with expensive loans and his ‘realization’ that those earning more than $1 million should be tax-tax-taxed. However, the “Buffett Rule” appears to have one caveat… if you are making over a $1 billion, you’re good to go with tax-avoidance strategies. In one of his career’s most hypocritical moves Warren “tax-me-more” Buffett has decided that putting his money where his mouth is no longer makes sense.. and is funding $3billion of Burger King’s “tax-inversion” takeover of Canada-based Tim Hortons. Somewhere on a golf course, a Presidential Putter is being snapped across a knee…
From the article:
“Far away from Congress is the real forgotten man, the taxpayer who foots the bill… For if human liberty is to survive in America, we must win the battle to restore honest money.”
“the paper money disease here may take many years to run its course…but when that day arrives, our political rulers will probably find that foreign war and ruthless regimentation is the cunning alternative to domestic strife.”
– The key libertarian in Warren Buffett’s life who he never listened to (The Blaze, Aug 13, 2014):
Warren Buffett has famously supported the Obama administration and other Democrats, even lending his name to the so-called “Buffett Rule,” which calls for raising income taxes on high earners. As such, it may surprise you to learn that a key person in Warren Buffett’s life was an ardent proponent of political views diametrically opposed to those of the “Oracle of Omaha.”
111 years ago today, Warren’s father Howard Homan Buffett was born in Omaha, Nebraska. Buffett, like his son Warren, worked in the investment business, but also served four terms in the U.S. House of Representatives from 1943-1949 and then again from 1951-1953, as an anti-New Dealer, anti-Fair Dealer and overall anti-interventionist of the Republican “Old Right.” Politically, it could be said that Buffett was the Ron Paul of his day.
Buffett even corresponded with leading libertarian Murray Rothbard, asking Rothbard in one letter where he might be able to procure a copy of his “The Panic of 1819,” so that he could pass it along to his son. Continue reading »
– Buffett’s Bailout Bonanza (ZeroHedge, Oct 7, 2013):
In the past we have tried to show the growing divide between the haves and the have-nots in the US. Whether through this morning’s “aggregate” Main Street vs Wall Street chart or various anecdotal indicators of diverging confidence. However, no one signifies the beneficiaries of the status-quo-sustaining government bailouts and stimulus better than Warren Buffett (who now, like Obama, sees stocks are full valued). The following chart shows just how well one can do with a few billion in your pocket and an ear for what the Government will do.
This proves one more time that these elite puppets really must think that the people are completely stupid.
– Warren Buffett: “The Fed Is The Greatest Hedge Fund In History” (ZeroHedge, Sep 22, 2013):
In a world in which all the matters is “scale”, the ability to Martingale down on losing bets as close to infinity as possible (something which JPMorgan learned with the London Whale may not be the best strategy especially when one can’t print money out of thin air), and being as close to the Fed’s Heidelberg rotary printer as possible, it was expected that that “expert” of government backstops and bailouts, the Octogenarian of Omaha, Warren Buffett, would have only kind words for Ben Bernanke. But not even we predicted that Buffett would explicitly admit what we have only tongue-in-cheek joked about in the past, namely that the Fed is the world’s greatest (and most profitable) hedge fund. Which is precisely what he did: “Billionaire investor Warren Buffett compared the U.S. Federal Reserve to a hedge fund because of the central bank’s ability to profit from bond purchases while accumulating a balance sheet of more than $3 trillion. “The Fed is the greatest hedge fund in history,” Buffett told students yesterday at Georgetown University in Washington. It’s generating “$80 billion or $90 billion a year probably” in revenue for the U.S. government, he said.
From Buffett’s presentation at Georgetown last week:
The Fed remitted $88.4 billion to the U.S. Treasury Department last year. The payments have ballooned as the central bank built its balance sheet during the past five years.
The Fed “is under no pressure, none whatsoever to have to deleverage,” Buffett said. “So it can pick its time, and if you have somebody wise there — and I think Bernanke is wise, and I certainly expect his successor to be — it can be handled. But it is something that’s never quite been done on this scale. It will be interesting to watch.”
Good thing none of the present had any idea what Mark To Market or what DV01 are, and how, if one actually marked the Fed’s balance sheet to reality, the Fed would have already lost nearly $300 billion in the past few months (or 5 times the Fed’s own regulatory capital) courtesy of the massive and rapid blow out in rates, driven exclusively by the Fed’s own inability to communicate with markets and warn about a taper that never came, because the global market had become unhinged precisely due to fear of a Taper, aka the Fed’s Tapering Catch 22.
Which by the way, takes care of Buffett’s concerns about Fed deleveraging: it will never come if the merest hint that the leveraging would be reduced by even the tiniest amount, sent the global carry trade into a tailspin. There is a reason why some, such as Zero Hedge, nearly 5 years ago showed that once you set off on a path of bailouts, there is no exit until everything ultimately collapse into a handful of dust. And we have Ben Bernanke to thank for proving us right again and again.
Finally, regarding Buffett’s claim, he is absolutely correct that when one has unlimited capital to invest, and has no concerns about downside risk, it is easy to quite easy to become the world’s biggest and most profitable hedge fund. Well, there is one downside: losing the dollar’s reserve currency status of course. And the more incidents that get even Fed presidents to admit that Bernanke is increasingly losing credibility with the markets, the closer we get to having a peek at what the ultimate cost of Bernanke’s unprecedented error will end up being.
- Peter A. Thiel, President, Thiel Capital
– Ron Paul’s Biggest Supporter Is Bilderberger, International Financier Peter Thiel
For your entertainment.
– Will It Be Inflation Or Deflation? The Answer May Surprise You (Economic Collapse, May 22, 2013):
Is the coming financial collapse going to be inflationary or deflationary? Are we headed for rampant inflation or crippling deflation? This is a subject that is hotly debated by economists all over the country. Some insist that the wild money printing that the Federal Reserve is doing combined with out of control government spending will eventually result in hyperinflation. Others point to all of the deflationary factors in our economy and argue that we will experience tremendous deflation when the bubble economy that we are currently living in bursts. So what is the truth? Well, for the reasons listed below, I believe that we will see both. The next major financial panic will cause a substantial deflationary wave first, and after that we will see unprecedented inflation as the central bankers and our politicians respond to the financial crisis. This will happen so quickly that many will get “financial whiplash” as they try to figure out what to do with their money. We are moving toward a time of extreme financial instability, and different strategies will be called for at different times.So why will we see deflation first? The following are some of the major deflationary forces that are affecting our economy right now… Continue reading »
– S&P Downgrades Berkshire From AA+ To AA, Outlook Negative (ZeroHedge, May 16, 2013):
Obviously with Buffett a major shareholder of Moody’s, the only place where a downgrade of Berkshire could come from was S&P. Moments ago, the rating agency that dared to downgrade the US for which it is being targeted by Eric Holder’s Department of “Justice”, did just that. Continue reading »
– Bill Gates, Jeb Bush, Oprah and Warren Buffett meeting at SC island (WBTW/WCBD News, May 10, 2013):
CHARLESTON, SC – Bill Gates, Chairman of Microsoft and one of the richest people in the world, is spending time in the Lowcountry.WCBD confirmed the American business magnate is at the Sanctuary on Kiawah Island.
Suspicion was raised when nearly 20 very expensive jets were seen lined up at the Charleston International Airport on Johns Island.
Officials with the Beach Company confirmed to WCBD that other big names such as New York Mayor Michael Bloomberg, TV host Oprah Winfrey and Billionaire Warren Buffet flew into the Charleston Executive airport on Johns Island Wednesday night.
Other prominent people said to also be staying there this weekend are Jeb Bush and Dan Gilbert, owner of the Cleveland Cavaliers.
– 500 Tons of Paper Gold Dumped on Friday, What’s Next? (Liberty Blitzkrieg, April 14, 2013):
I wish I knew the answer to the above question. As of the last year or so, I admittedly have not had a good feel about the direction of gold and silver prices. I always thought that as things got more severe and more terminal, the prices of assets we see on our screens would be more and more quite intentionally disconnected from the reality on the ground due to increasingly aggressive, desperate and coordinated action by the power structure. Looking back, it seems this really got underway in the fall of 2011, shortly after the U.S. treasury market was downgraded and gold shot up to over $1,900/oz. I have gradually recognized my inability to call things in such manipulated financial markets, which is why I decided to step away and offer less commentary on these topics as things play out in the end game.
I do not think it is at all coincidental that Bitcoin and gold (two currency threats to Federal Reserve power) both got smashed within a couple days of each other. In the case of gold, it was a day after Obama had a private meeting with all of the key bankster oligarchs that 500 tons of paper gold, or about 25% of annual production was sold on the market.
As such, I think the interview below from Marin Katusa of Casey research is a great listen for anyone wanting to take a step back and look at the market. Enjoy!
Consider the 500 tons of paper gold sold on Friday. Begin with the question, how many ounces is 500 tons? There are 2,000 pounds to one ton. 500 tons equal 1,000,000 pounds. There are 16 ounces to one pound, which comes to 16 million ounces of short sales on Friday.
Who has 16 million ounces of gold? At the beginning gold price that day of about $1,550, that comes to $24,800,000,000. Who has that kind of money?
What happens when 500 tons of gold sales are dumped on the market at one time or on one day? Correct, it drives the price down. Investors who want to get out of large positions would spread sales out over time so as not to lower their sales proceeds. The sale took gold down by about $73 per ounce. That means the seller or sellers lost up to $73 dollars 16 million times, or $1,168,000,000.
Who can afford to lose that kind of money? Only a central bank that can print it.
– So Who Leaked The Heinz Deal? (ZeroHedge, Feb 14, 2013):
Just a purely accidental modest to quite modest increase in the Heinz June $65 call open interest yesterday, and an even more accidental $1.5 million profit in one day? Surely the new Morgan Stanely head of the SEC will get right on it, and market “credibility” will be preserved. At least Buffett’s DOJ-immune rating agency Moody’s will rate the JPM’s committed financing for the HNZ takeover AAAA++++.
– Heinz Confirms It Will Be Acquired By Buffett In $28 Billion Transaction At $72.50/Share (ZeroHedge, Feb 14, 2013):
Just released by Heinz. Luckily, the brand new US Secretary of State has a full conflict of interest release.
H.J. Heinz Company Enters Into Agreement to Be Acquired by Berkshire Hathaway and 3G Capital
H.J. Heinz Company (NYSE: HNZ) (“Heinz”) today announced that it has entered into a definitive merger agreement to be acquired by an investment consortium comprised of Berkshire Hathaway and 3G Capital.
Under the terms of the agreement, which has been unanimously approved by Heinz’s Board of Directors, Heinz shareholders will receive $72.50 in cash for each share of common stock they own, in a transaction valued at $28 billion, including the assumption of Heinz’s outstanding debt. The per share price represents a 20% premium to Heinz’s closing share price of $60.48 on February 13, 2013, a 19% premium to Heinz’s all-time high share price, a 23% premium to the 90-day average Heinz share price and a 30% premium to the one-year average share price.
– Berkshire Seeks To Avoid 2013 Tax Hike, Buys Back BRK Shares (ZeroHedge, Dec 12, 2012):
Define irony: when the most vocal supporter of a dramatic change to the existing tax policy takes advantage of the last few days of the old one…
- BERKSHIRE HAS PURCHASED 9,200 OF CLASS A SHRS AT $131,000-SHR
- BERKSHIRE RAISED PRICE LIMIT FOR BUYBACKS TO 120% BOOK VALUE
- BERKSHIRE MAY BUY ADDED SHRS AT NO MORE THAN 120% BOOK VALUE
- BERKSHIRE BOOSTS BUYBACK PRICE LIMIT TO 120% BOOK VALUE VS 110%
A total $1.2 billion spent to avoid a few hundred million in new taxes. And now back to the hypocrticy of the “Buffett tax”, and “Patriotic Millionaires for America.” In other news, total donations to pay down the debt in Fiscal 2013 (starting October 1): $290,195.03.
– Is JPMorgan About To Take Over America, Again? (ZeroHedge, Nov 27, 2012):
Great and wondrous things seem to be afoot among the righteous bankers of the world. A few months ago Matt Zames was named to get JPMorgan’s CIO office out of trouble – and also happens to be the Chairman of the all-powerful Treasury Borrowing Advisory Committee. Just yesterday, Mark Carney completed Europe’s full-house of ex-Goldman Sachs alum running the region’s monetary policy. Today we hear Lloyd Blankfein will be sidling up to Obama tomorrow. And now this; from the never-crony-capitalist himself, billionaire Warren Buffett has publicly blessed Jamie “apart from the failure of control” Dimon as the best man for the top job at the Treasury. “If we did run into problems in markets, I think he would actually be the best person you could have in the job,” Buffett added (sounding more like the ‘we’ meant he) and dismissed the London-Whale “failure of control” with sometimes “people go off the reservation.” With Zames running the Shadow Treasury and Dimon running the Real Treasury, is it any wonder that inquiring minds are asking who really runs America (and for whom)? Of course, in the pre-Fed era – over 100 years ago, JPMorgan Sr. ‘bailed-out’ America before…
“2. Rothschild Family (banking dynasty, 1740- ) $350 billion”
… which is ‘peanuts’ for the Rothchild’s or maybe their petty cash.
I have a question: Why is it, with all those banks losing TRILLIONS OF DOLLARS, that MSM and our beloved governments always fail to mention who is on the other side of the trade?
I mean money doesn’t just magically disappear …
… unless it is the day before 9/11:
Donald Rumsfeld on CBS NEWS: Pentagon Cannot Account For 2,3 TRILLION Dollars (Video)
The very next day America was under attack and the $ 2.300.000.000.000 were forgotten.
– Meet Mansa Musa I of Mali – the richest human being in all history (Independent, Oct 19, 2012):
A new study has produced an inflation-adjusted list of the richest people of all time
When we think of the world’s all-time richest people, names like Bill Gates, Warren Buffet and John D Rockefeller immediately come to mind.
But few would have thought, or even heard of, Mansa Musa I of Mali – the obscure 14th century African king who was today named the richest person in all history.
– The Bears Explain How The Rich Get Richer (ZeroHedge, Oct 12, 2012):
In an attempt to break the now ubiquitous narrative that “its all about income tax rates”, and to challenge the ridiculous new support for QEternity; ‘The Bears’ that brought you ‘The Bernank’ are back. In this cartoon, they explain how the bailouts made people like Warren Buffett far wealthier than they should be and exposes who actually benefits from all this QE. The Bears, The Buff-ate, and The Bernank – simply perfect.
– Buffett Joins Team Whitney; Sees Muni Pain Ahead As He Unwinds Half Of His Bullish CDS Exposure Prematurely (ZeroHedge, Aug 20, 2012):
Just under two years ago, Meredith Whitney made a much maligned, if very vocal call, that hundreds of US municipalities will file for bankruptcy. She also put a timestamp on the call, which in retrospect was her downfall, because while she will ultimately proven 100% correct about the actual event, the fact that she was off temporally (making it seem like a trading call instead of a fundamental observation) merely had a dilutive impact of the statement. As a result she was initially taken seriously, causing a big hit to the muni market, only to be largely ignored subsequently even following several prominent California bankruptcies. This is all about to change as none other than Warren Buffett has slashed half of his entire municipal exposure, in what the WSJ has dubbed a “red flag” for the municipal-bond market. Perhaps another way of calling it is the second coming of Meredith Whitney’s muni call, this time however from an institutionalized permabull. Continue reading »
Bill Gates is not wrong, just evil.
– Buffett Makes Annual Donation to Bill Gates Foundation (Bloomberg, July, 7, 2012):
Warren Buffett, the billionaire who pledged to donate most of his wealth to charity, contributed stock valued at $1.52 billion in his annual gift to the foundation created by Microsoft Corp. (MSFT) co-founder Bill Gates.
Buffett, chairman and chief executive officer of Berkshire Hathaway Inc. (BRK/A), donated about 18.4 million of his company’s Class B shares to the Bill and Melinda Gates Foundation, according to a filing issued yesterday. The shares closed at $82.54 in New York.
– Here We Go: Moody’s Downgrade Is Out – Morgan Stanley Cut Only 2 Notches, To Face $6.8 Billion In Collateral Calls (ZeroHedge, June 21, 2012):
Here it comes:
- MOODY’S CUTS 4 FIRMS BY 1 NOTCH
- MOODY’S CUTS 10 FIRMS’ RATINGS BY 2 NOTCHES
- MOODY’S CUTS 1 FIRM BY 3 NOTCHES
- MORGAN STANLEY L-T SR DEBT CUT TO Baa1 FROM A2 BY MOODY’S
- MOODY’S CUTS MORGAN STANLEY 2 LEVELS, HAD SEEN UP TO 3
- MORGAN STANLEY OUTLOOK NEGATIVE BY MOODY’S
- MORGAN STANLEY S-T RATING CUT TO P-2 FROM P-1 BY MOODY’S
But the kicker:
ONLY MORGAN STANLEY, HSBC CUT LESS THAN MOODY’S ORGINAL MAXIMUM.
And there you have it – the reason for the delay were last minute negotiations, most certainly involving extensive monetary explanations, by Morgan Stanley’s Gorman (potentially with Moody’s investor Warren Buffett on the call) to get only a two notch downgrade. And Wall Street wins again.
Recall, from MS’ 10-Q:
“In connection with certain OTC trading agreements and certain other agreements associated with the Institutional Securities business segment, the Company may be required to provide additional collateral or immediately settle any outstanding liability balances with certain counterparties in the event of a credit rating downgrade. At March 31, 2012, the following are the amounts of additional collateral, termination payments or other contractual amounts (whether in a net asset or liability position) that could be called by counterparties under the terms of such agreements in the event of a downgrade of the Company’s long-term credit rating under various scenarios: $868 million (A3 Moody’s/A- S&P); $5,177 million (Baa1 Moody’s/ BBB+ S&P); and $7,206 million (Baa2 Moody’s/BBB S&P). Also, the Company is required to pledge additional collateral to certain exchanges and clearing organizations in the event of a credit rating downgrade. At March 31, 2012, the increased collateral requirement at certain exchanges and clearing organizations under various scenarios was $160 million (A3 Moody’s/A- S&P); $1,600 million (Baa1 Moody’s/ BBB+ S&P); and $2,400 million (Baa2 Moody’s/BBB S&P).”
So instead of $9.6 billion, MS will face only $6.8 billion in collateral calls.
Still the firm is not out of the woods: Continue reading »
Tags: Bank of America, Banking, Barclays, BNP Paribas, Citigroup, Credit Agricole, Credit Suisse, Deutsche Bank, Economy, Global News, Goldman Sachs, HSBC, JPMorgan, Moody's, Morgan Stanley, Nomura, Rating, RBS, Societe Generale, Warren Buffett
Got gold and silver?
– Must Read: “Another Perspective” (ZeroHedge, May 14, 2012):
From Paul Brodsky and Lee Quaintance of QBAMCO
Another Perspective (pdf)
Two weeks ago, before Jamie Dimon’s thoughtful diversion, Charlie Munger of Berkshire Hathaway instructed viewers of CNBC that “civilized people don’t buy gold, they invest in productive businesses”. Munger was right in that civilized people invest in productive businesses and was right to imply that gold is a non-productive rock, but, in our humble opinion, he was wrong to suggest that gold does not have significant upside as an investment currently (even more than BRK/A?).
Tags: Ben Bernanke, Berkshire Hathaway, Bonds, Central Bank, Charlie Munger, China, Debt, Economy, EU, Europe, Fed, Federal Reserve, Global News, Gold, Goldman Sachs, Government, Greece, IMF, Larry Summers, Politics, QBAMCO, Silver, Stock Market, Timothy Geithner, U.S., Unemployment, Wall Street, Warren Buffett
While Becky Quick’s CNBC interview with the Charlie Munger has a little for everyone to love and hate (from Keynesian-doctrine to easy-living-Greeks and Bad-trading-robots), Buffett’s right-hand was particularly eloquent in his views (at around 9:08) on Einhorn’s distrust of the Fed and buying Gold: “gold is a great thing to sew onto your garments if you’re a Jewish family in Vienna in 1939 but civilized people don’t buy gold – they invest in productive businesses.” End quote.
It is actually funny, because years ago, someone warned us precisely about crony capitalist creeps such as this one:
“I warn you that politicians of both parties will oppose the restoration of gold, although they may outwardly seemingly favor it, unless you are willing to surrender your children and your country to galloping inflation, war and slavery then this cause demands your support. for if human liberty is to survive in America, we must win the battle to restore honest money. There is no more important challenge facing us than this issue — the restoration of your freedom to secure gold in exchange for the fruits of your labors.”
Where did the warning come from?
– Warren Buffett diagnosed with prostate cancer (CNNMoney, April 17, 2012):
NEW YORK — Iconic investor Warren Buffett announced Tuesday that he has been diagnosed with stage I prostate cancer in a letter to shareholders of his firm Berkshire Hathaway.
Buffett, 81, said his “condition is not remotely life-threatening or even debilitating in any meaningful way,” and that additional tests didn’t reveal incidence of cancer anywhere else in his body.
Buffett also said he will undergo daily radiation for two months beginning in mid-July. While the treatment will restrict him from traveling during the period, Buffett said his daily routine will not otherwise change.
“I feel great — as if I were in my normal excellent health — and my energy level is 100%,” wrote Buffett. “I will let shareholders know immediately should my health situation change. Eventually, of course, it will; but I believe that day is a long way off.”
– Warren Buffett Priced In Gold (ZeroHedge, Mar 3, 2012):
Can you say bubble? Or, more to the point, can you say bursting?
Warren Buffett loves to bash gold — claiming that stocks are inherently superior, because they produce a return, whereas gold just sits. Trouble is, stocks (and all paper assets) are subject to counter-party risk, whereas physical gold isn’t. Gold doesn’t overcompensate its CEOs, it doesn’t leverage its productive capital in toxic derivatives, it doesn’t cause industrial disasters like Deepwater Horizon, its value isn’t dependent on central banking, or securitisation, or American imperialism, or the machinations of the military-industrial complex. It just sits, retaining its purchasing power.
Warren Buffett had a great ride: he grew his wealth and businesses in an era of unprecedented growth powered by OPEC oil, and later by Chinese industrialism. That era — the era of the American free lunch — is coming to an end. His insights are applicable to that era. Today is a different world.
Ennio Morricone – Ecstasy of Gold
– Asia Buying Gold On Dips – “Empires May Fall, Currencies May Change… Gold Will Always Survive” (ZeroHedge, Feb. 13, 2012):
“The Chinese guys are still buying. Whenever there is a dip in prices, they will buy. There’s no change in their attitude,” said a physical dealer in Hong Kong, who trades gold bars. “They are still buying today, because I think the downside is limited for the time being. Sentiment has improved a little bit.’’
Market focus tends to be almost solely on Chinese and Indian demand but demand is broad based throughout increasingly important Asian gold markets. Demand for gold remains robust in most Asian countries where consumers are buying gold as a store of wealth due to concerns about their local paper currency.
This phenomenon is happening throughout Asia including in Malaysia, Indonesia, Thailand and Vietnam and other large Asian countries (see news below regarding demand for gold by investors in Thailand).
AFP have a very interesting article on Vietnamese ‘gold fever’ which recounts how “stashing gold at home rather than having cash in the bank is a generations-old habit in communist Vietnam”.
And old habits are dying hard even if an ounce of gold bullion can now cost up to US $100 more in Hanoi than anywhere else in the world due to government meddling in the gold market.
AFP quote 60-year-old retiree Truong Van Hue “I still like to keep my savings in gold. It’s safe for retired people like me. I can sell the gold any time, anywhere, when I need cash,” he told AFP.
Vietnam’s love of the yellow metal is centuries-old, rooted in a history of strife, warfare and want. “Empires may fall, currencies may change… gold will always survive,” said sociologist Vu Duc Vuong.
– Warren Buffett: gold has no value (Telegraph, Feb. 10, 2012):
Billionaire investor Warren Buffett has dismissed gold as a valueless asset saying that it has no inherent value. In an article for Fortune magazine, Buffett said that gold investors were pinning their hopes on future demand.
He warned that gold was a self-inflating bubble, created by investors desperate for a viable alternative to property and shares.
The infamous investor warned that investors in gold would be left with egg on their face when the price eventually crashed.
– Max Keiser And Gerald Celente On MF Global Bankruptcy Implications – The JP Morgan Connection – Goldman Sachs – CME (‘Chicago Mafia Exchange’) – Gold, Silver – Syria, Iran – Entire Financial System Collapsing, One Big Global Ponzi Scheme – False Flag, WW III – Bank Holiday, Economic Martial Law – ‘YOUR MONEY ISN’T SAFE’