More good news for Grandpa Warren

One of the top business headlines this morning is that GMAC Financial Service is going to get another $3.5billion gift from the U.S. taxpayers. This is on top of the $12.5billion taxpayer gift already given to GMAC. This new money will allow GMAC to avert placing their DOA mortgage unit Residential Capital LLC into bankruptcy.
It is an amazing coincidence that the world's greatest investor, Warren Buffet is a huge stake holder in Residential Capital LLC. He is, in fact, in discussions to increase his investment and purchase the entire entity. Talk about good luck for Grandpa Warren!
The world's greatest investor has had a string of amazing luck in the past 18 months or so. As he holds huge positions (at least $26billion at risk) in Wells Fargo, Goldman Sachs, Bank of America, American Express, U.S. Bancorp, General Electric, M & T Bank, and Sun Trust Bank. What do all of these have in common? You guessed it each and every one of this firms would have gone bankrupt in 2008 without taxpayer gifts, backstopping of losses, guarantees, and 0% borrowing.
The greatest investor in the world is also the largest shareholder in Moody's Corporation. Moody's was directly responsible for the mortgage backed securities collapse (which began the economic collapse we are living through) as they were the preeminent rating agency for what have affectionately come to be known as "toxic assets". In the event you are unfamiliar, the scam was, Goldman and other investment banks would package crappy residential mortgages together with the intention of selling these time bombs to investors the world over looking for safe, income bearing investments. The tool that the buyers of these pieces of crap used to determine if they were a safe and sound investment was the rating provided by Moody's. Moody's called them AAA, indicating they were safe to purchase, providing for Goldman and the other crooks to get rid of this crap, which they promptly then bet on failing...but this is another story worth telling another day.
So Grandpa Warren, the world's greatest investor, once again is indirectly at the government trough with one of his investments being bailed out. If only us mere mortal investors could be as smart as Grandpa Warren.
My favorite part of grandpa's fleecing of America is the clear tit for tat of him making himself available to the media throughout this consolidation of power, wait it is being called a crisis...sorry, to reassure all of the world that America is better than ever and that the entire world should be investing in America. It started with his Op-Ed piece in the New York Times in October 2008 when he told everyone to purchase U.S. stocks and has continued with his interviews with Becky Quick of CNBC. The most recent of the propaganda tour had Buffet and Bill Gates at Columbia University where Buffet said that holding cash was the worst thing anyone could do now and that full investment in the stock market was the way to go.
Mark Twain said, "History doesn't repeat itself, it rhymes". Few people know that following the stock market crash of 1929, America also had a favorite, politically connected, grandpa who was thought to be the greatest investor in the world telling everyone the worst was over and they should buy stocks--J.D. Rockefeller. Here's a real headline from October 31, 1929 "Rockefeller Buys Allaying Anxiety; Elder Financier Says Business Status Does Not Warrant the Destruction of Values".
Grandpa, along with the large member banks of the Federal Reserve, continue to be the beneficiaries of the destruction of America. Looks like grandpa agreed to be pimped out to the propaganda machine periodically to say how great things are and occasionally get rid of some of his increasingly worth less dollars to purchase U.S. companies to keep the fake stock market rally going to keep his title of world's greatest investor. There's a little thing called reversion to the mean that implies that grandpa should have gotten crushed last year and seen the results of his investment career come crashing down to the mean of other investors. Amazing how it just didn't happen.
Congrats to grandpa on yet another one of his investments being bailed out by mortgaging the future of America.