writes bert dohman.............."The “spinmeisters” will not like this, but in my view, such “confidence building moves” are signs of crisis. Just one week ago the CEO of BAC said the firm didn’t need to raise any capital. This is so reminiscent of 2008. Buffett’s investment is to support the markets. History shows that such actions usually fail. The current problems are much bigger than that. Do you really think that Buffett can bail out all the European banks, or European countries such as Greece, Portugal, Spain, Italy, etc?
If he likes the 6% yield on BAC, he can get 46% on Greek 2-year government bonds.
Buffett’s move once again signals that a serious crisis is approaching, similar to the signals his moves sent in 2008. Of course, that is opposite to the intent of the investment"..............READ MORE
No comments:
Post a Comment