Saudi Prince Walid has seen a 50% loss in overall holdings and a massive 89% loss in Citibank.
http://www.cnbc.com/id/29441086
The letter also reveals a 9.6 percent decline in Berkshire's book value per-share last year, making 2008 the company's worst year since Buffet took over in 1965.
2009 will not be any better, with holdings in WFC, another bank that will need to be bailed out.
http://www.cnbc.com/id/29442377
American International Group is close to a deal with the U.S. government that would ease the terms of its bailout, give a further equity commitment and help it pay down debt,
So shareholders, all taxpayers since we own this pieces of crap. You are looking at the government overseers to cut a deal with AIG, that lowers our payback, increases our bet and lower any chance of payback. Happy? Look for this to be the road map for Citi, BAC and WFC.
http://www.businessinsider.com/historical-low-default-rates-on-munis-dont-mean-jack-2009-2
Buffet also predicts losses to mount in the muni bond industry. Why do we care, we your city can not borrow money look for massive local cuts. Up to the plate first, Californian which already lost one city and with more to come soon. This is the end for massive government spending. At some point you can spend more borrowed money. When that happens very bad things occur.
http://www.nytimes.com/2009/02/28/business/economy/28recession.html?_r=1&hp
The best part, Obama group see good times just around the corner. The only problem? No one outside of his group does. In fact most people are now lowering the expectations for the next three years. Cut the deficits? Not a chance. Risk over promising and massive spending cuts cause no one will lend us money? Yes.
In short everyone is losing and no one has a clue how to stop it.
No comments:
Post a Comment