two ways to look at it
just as the bond insurance industry is starting to fret about their AAA credit rating, a new player, backed by Berkshire's Billions, with lots of insurance experience (Geico and General RE) is about to enter the market with an AAAA credit rating.
if the current bond insurers ( MBIA & Ambac) lose their AAA credit rating we will see some real fireworks in the market with carryover to the financials, maybe Buffet is looking at certain financial, but by making this move he almost guarantees he'll get them cheaper in a few months.
or
consider His insurance companies (Geico and General RE) own a pretty large boatload of these mortgage instruments. This is simply a ploy to try keep these bonds on the books at face value. Ain't gonna happen as the foreclosure will keep getting worse and worse. This is only postponing the death of the major financial institutions
I'm in Miami - nothing is selling - but I'm in some real obscure things - alot of things the government wants to purchase - but yes, nothing is selling - and several of my mortgages are going bad and I already had to foreclose two mortgages in the last 6 months - I imagine I'll be foreclosing another 4 or 5 this year - but this will provide buying opportunities in the middle of the year or so - banks are already taking less than they lent - if their judgment is 400k they'll stand up and say they'll let it go for 350k - and they still get stuck with it.
Seymour you would be doing yourself a big favor if you put a healthy chunk of your money into precious metals.
That way if us guys calling for a full blown economic disaster are correct you cannot be wiped out as gold will always have value.
I dont recommend GLD, but owning that gold etf is better than no exposure to the sector. Buy the physical first then pick a handful of the best mining stocks.
Your portfolio looks to have alot of different things, so you will probably track what the s/p or close to what the worldwide benchmark does.
Plenty of rich people have went bankrupt during extended bear markets and recessions. We dont really need a full blown depression to wipeout alot of paper wealthy folks.
That way if us guys calling for a full blown economic disaster are correct you cannot be wiped out as gold will always have value.
I dont recommend GLD, but owning that gold etf is better than no exposure to the sector. Buy the physical first then pick a handful of the best mining stocks.
Your portfolio looks to have alot of different things, so you will probably track what the s/p or close to what the worldwide benchmark does.
Plenty of rich people have went bankrupt during extended bear markets and recessions. We dont really need a full blown depression to wipeout alot of paper wealthy folks.
I do agree with this post, but thats a larger problem than it appears.
The American economy and much of our lifestyle is based upon cheap energy.
They are falling off the wagon slowly, but there are still people out there that think oil is going back to what it was earlier this decade.
That simply isnt going to happen.
you assuming china and india continue to grow at unsustainable 10%+ clips too
i mean if the rest of the world continues to boom and we fall on our face at same time your right
oil went from the teens to 70s from early 70s to early 80s and than russia went belly up
