Monday, August 29, 2011

Buffet To Start Corn-A-Holing You?

Warren Buffet has recently made a number of investments which have paid off by virtue of Federal Government actions.  Goldman Sachs was one; GE would seem to be another, and last week's $3Bn for Bank of America is tantalizing, no?

That's not all.

More recently, Buffett said he's considering investments in ethanol pioneer Archer Daniels Midland

As Tim Carney notes in the linked article, ADM is a success largely due to its influence with big-time political animals (who the Hell would use ethanol if they weren't forced to?).

6 comments:

Anonymous said...

Oh yeah - he screwed GE big time. But they were so desperate for cash, they were willing to "sell" him $3B worth of "Preferred Stock" with a 10% dividend....

How bad of shape did they need to be in to take a loan with 10% interest when interest rates were close to zero?

If not for the thousands of employees that Immelt has graciously let keep their jobs in the US (for now) and the funds with Berkshire Hathaway... screw them all.

Anonymous said...

So, if everyone is SO upset at Buffet and company making money within our capitalist system, do you propose rules to limit their activities???

Anonymous said...

Is Dad carping for MORE regulation? Hmm...

neomom said...

Why would getting rid of ethanol mandates be more regulation. My goodness liberals are logically challenged.

Lets draw that metaphorical picture for you....

Buffet invests in ADM because they are benefitting from the government regulations requiring us to put 40% (and increasing) of our corn supply into an inferior fuel source. Without these regulations, ADM isn't nearly as attractive.

Ergo, Buffet is a wealthy bottom feeder off the government largess.

To get rid of the bottom feeder, get rid of the ethanol regulations.

Dad29 said...

Logic doesn't always come easy to some folks.

Anonymous said...

"Why would getting rid of ethanol mandates be more regulation?"

Read for meaning. I was focusing on how people are bitching about a person taking advantage of a situation without considering its corollary. So, "limiting their activities" would mean getting rid of regulations, i.e. ethanol mandates.

So government regulations to benefit one group, lax or no government regulations to benefit another group.

That's how our system works. And, Buffet a "wealthy bottom feeder"? Then you better be ready to put our a number of our CEO's and those who just buy/sell stock in that category!