Buffet proved how weak the mortgage insurers are....
As you probably know, Warren Buffet swooped into the Monoline insurers with a bailout. However, what you might not know is that Warren Buffet is doing a vulture run on the remains of the Monoline insurers.
What's not really well publicized is the deal includes a 9 billion dollar cash grab the Mr. Buffet will get if he starts the deal but no matter if he completes the offer or not.
Buffet is famous for coming in with hard deals when companies are weak so he can maximize his benefit. When Mr. Buffet comes to dinner... he's coming for your company.
Let's see if they let him dine...
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3 comments:
John,
I don't know if you are aware of this but this has been in the works for quite a while since Buffet does nothing quickly. Can you guess who asked him to go into this business back then. Before the crisis hit but when savvy people saw it coming, Buffet being one of them. These insurers were bound to be in trouble so far out that they were coming like a hurricane. I will give you a clue, the initials of the man who runs the agency making the request to Buffet is BB.
It is like a game of monopoly. Buffet has purchased 2 mines and railways, and then he is going after insurers. When the dust settles and the sheep are allowed to function again in the Matrix normally, we all will soon forget these days.
From people loosing pension and equity wealth to the housing collapse, stock market volatility and the government deficit war spending, and inflation tax, what we are actually witnessing is the biggest transfers of wealth on the planet. and in the history of Mankind!
I leave in Akron, Ohio, the "rust belt". We have been "depressed" for years...however, my business, which is remodeling and selling houses is doing great! Money is still flowing for buyers of houses. I just got a $100k unsecured credit line. I am not lying or exaggerating. The restaurants here are ALWAYS packed. At 5 pm on Saturday, Outback had a 1.5 hour wait. I know a lot of people that are doing great. What happened to hard work? What happened to smart work? The economy will change. It will always change. We are just cutting off the fat of bad loans. Someone will buy the assets of those bad loans at discount and prices will correct. We live in a vibrant economy. We are lucky to be born at this period of time in the world. Everyone stay positive!!!
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