Sunday, November 08, 2009

Barry blasts Buffett

Whoa, and did he ever. Not once, but twice in one day!

Treasury DKs Goldman/Fannie/BRK Tax Credit Scam
Due to an unexpected outbreak of rationality (and perhaps embarrassment), the Treasury department has rejected requests of Goldman Sachs and Berkshire Hathaway to purchase Tax Credits from Fannie Mae.

And while we expect this sort of behavior from the Vampire Squid — they take pride at Goldman in not just being whores, but in being the highest paid callgirls in town — it is stunning to see such behavior from the usually politically astute Oracle Tentacles of Omaha. For Warren Buffett’s Berkshire Hathaway to team up with Goldman Sachs (which he now owns a healthy chunk of) is a bit of a revelation: We have been spun by his genteel manner, his aw shucks down-home-isms, his off Wall Street, less bloodthirsty approach to investing, into somehow believing he was different.

We have been duped.

We should not have been. Buffett has been the biggest shareholder in Moody’s — a collection of filthy whores and pederasts who were one of the main contributors to the economic collapse — should have raised serious questions as to his judgment in our minds. That he sat by silently as they did their worst, sodomizing the nations credit system for fun and profit was a powerful indictment of Buffett as someone far different than his public persona. In retrospect, as Moody’s was helping to destroy America’s financial system, his merely spouting off aphorisms about about Financial WMDs now looks too cute by half.

If you missed his nuanced light criticism, he added this.

Buffett’s Bailouts
Buffet owns major stakes in 8 companies that have received more than $100 billion in government bailouts.

Capitalist? Hardly. Sounds more like just another crony to me.

Needless to say, he generated a broader view of comments than usual. Guambat will be watching for Jeff Mathews' rejoinder.

And Guambat will equally be watching to see what frequent read Felix might have to say about Barry's characterisation of Rolfe Winkle as "a thinking man’s Felix Salmon". Guambat is curious whether Barry had had a very good weekend or a very bad one. Something seems to have pumped him up.

Meanwhile, elsewhere in Barry's world was this further bit of bad news for Main Street by regular sidebar blogger Peter Boockvar, which will at some point be felt badly on Wall, too.

Consumer Credit continues downward trend
Consumer Credit outstanding fell $14.8b in Sept seasonally adjusted, almost $5b more than expected and marks the 11th month in the past 12 of declines. At $2.456T outstanding, it is 4.9% below the record high in July ‘08.

To fully put into perspective today’s data, look at the current level of consumer credit (doesn’t include mortgages, the biggest chunk of consumer credit) relative to GDP.
As of Q3, it totaled 17.2% of GDP
vs 17.8% at the end of ‘08 ,
16.9% at year end ‘00,
15.1% at year end ‘95,
13.8% at year end ‘90 and
11.7% at year end ‘82 just as that economic expansion began.

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