Posted on 09/22/2008 6:46:26 PM PDT by Sneakyuser
The US government has a group of 200 people to JUST look over Fannie Mae/Freddie Mac called OFHE and another agency group to look over them too!
What Warren thinks... "...two of the biggest accounting disasters in the past ten years: Freddie Mac and Fannie Mae. We're talking billions and billions of dollars of misstatements at both places."
...As a dramatic illustration, take two of the biggest accounting disasters in the past ten years: Freddie Mac and Fannie Mae. We're talking billions and billions of dollars of misstatements at both places.
Now, these are two incredibly important institutions. I mean, they accounted for over 40% of the mortgage flow a few years back. Right now I think they're up to 70%. They're quasi-governmental in nature. So the government set up an organization called OFHEO. I'm not sure what all the letters stand for. [Note to Warren: They stand for Office of Federal Housing Enterprise Oversight.]
But if you go to OFHEO's website, you'll find that its purpose was to just watch over these two companies. OFHEO had 200 employees. Their job was simply to look at two companies and say, "Are these guys behaving like they're supposed to?" And of course what happened were two of the greatest accounting misstatements in history while these 200 people had their jobs. It's incredible. I mean, two for two!
(Excerpt) Read more at money.cnn.com ...
Yes, CNN (Commie News Network) would call it an “accounting disaster” not a corrupt Democratic, Jimmah Cahtah, Bill Clinton, Franklin Raines, Jamie Gorelick, PC, “multicultural” boondoggle and ponzi scheme, etc.
Buffett leaving Obama and his corrupt Fannie Mae cronies and endorsing McCain would be a big victory.
Hey Warren, where were you 2, 3, 5, 10 years ago?
We know how and why they did at Fannie Mae and FReddie Mac( instead of a lobster in every pot it was a house in every pot)
Liberal Utopians will be the death of America yet. And Obmama is one of them, and he wants to be president?
God help us all.
He sees nothing wrong with the Federal Estate (death) taxes!!!
I haven't heard about this, but McCain will probable court him since he's a friend of Arnold's and both of them are trying to screw conservatives right out of the Republican Party for good!!! (wretch)
Buffet is very slick. He never said he wanted McCain over Obama because he said Obama could be so “transformational”. He simply said that he prefers McCain among the Republicans.
Buffet is very slick. He never said he wanted McCain over Obama because he said Obama could be so “transformational”. He simply said that he prefers McCain among the Republicans.
“...As a dramatic illustration, take two of the biggest accounting disasters in the past ten years: Freddie Mac and Fannie Mae. We’re talking billions and billions of dollars of misstatements at both places.”
It actually probably gives the discerning public a tame illustration of the degree of graft, corruption, and mismanagement at genuine government agencies.
BULLETIN: BERKSHIRE HATHAWAY TO INVEST $5 BILLION IN GOLDMAN SACHS
BULLETIN: BERKSHIRE HATHAWAY TO INVEST $5 BILLION IN GOLDMAN SACHS
I'm catching up on pings here (I was gone last week)
Here is an interview with Charlie Rose where McCain talks about a commission to review and "reform" government.
"I'd ask Warren Buffett to come back and run a commission to reform the institutions of government."After seeing Warren with Arnie, I'm not much interested in Warren's type of "reform." Hold on to your wallet.
OMG!!! What a complete and utter fool!!!
We are getting further and further into trouble with this man. He's racing to move us as close to Obama's leftist croud as he possibly can!!! (wretching uncontrolably)(he's reaching across the isle so to speak)
Warren does have something to offer. I guess he’s not in on this end of the scam.
(sidenote... this snip is written by Henry Blodget... Remember him from the dot-com boom? I thought he’d be in jail.)
http://www.clusterstock.com/2008/9/warren-buffett-reveals-bailout-s-dirty-little-secret
Warren Buffett Reveals Bailout’s Dirty Little Secret
The critical part of the bailout is the price the government pays for the trash assets it buys from banks. In short, if the government pays too much, the taxpayers will get hosed.
So it is interesting to note the difference between the price the government is proposing to pay and the price one of the world’s smartest investors—Warren Buffett—would be willing to pay. To wit:
Bernanke and Paulson want to pay a phantom “hold-to-maturity” price that is above the prices at which the banks are currently valuing their trash assets. The logic is that the banks’ carrying value is somehow artificially depressed by a lack of liquidity. (This logic is weak: If anything, the banks are trying to conceal how badly off they are by overstating the value of the assets).
(snip)
Read that again. Warren Buffett is not talking about paying any theoretical “hold-to-maturity” price. He’s not even talking about the “don’t-give-your-shareholders-all-the-bad-news-yet” carrying price (the “fanciful” ones he describes above). He’s talking about the market price. And, unlike Bernanke, he’s not suggesting that market price is somehow artificially depressed by a lack of liquidity. On the contrary, he’s saying the market price is the market price because that’s the price intelligent investors need to pay to offset their risk. The goverment should not pay one cent more than the market price.
Why aren’t Bernanke and Paulson suggesting that the government pay a “market price.” Because they know the banks will continue to insist that this price is too low and won’t play ball.
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