The Oraface, I mean the Oracle Warren Buffet, who claims to have Eureka moments in the bathtub, is the chief front man for the crony capitalist racketeers. With an election year approaching and Goldman Sachs Lloyd Blanketyfiend persona non grata, good ole Warren can be high profile, meeting with the Presidente, acting democratic, kind of populist [Stop Coddling the Rich] , and working his schemes. With various analysts suggesting that Bankamerica needs to raise up to $50 billion, Warren flexes his muscles and steps up with a cool $5 billion. Just for the record, the Oracle is now underwater on his GE and GS warrants. Also consider that he had a draw down of over 50% of GS before the Gumnut bailed out the whole system.
5:35 PM Warren Buffett is planning to host a September fundraiser for Pres. Obama’s re-election campaign at the Four Seasons restaurant in New York, where VIP tickets will go for $35,800. Perhaps that's what the two men were discussing when they met a few days ago... or could the Bank of America (BAC) deal have been on the agenda?Now Presidente Hopium is lending support to a compromise mortgage fraud deal that can be played to an electorate demanding a little blood. More importantly it allows banksters to escape with about $20 billion in penalties and no future liabilities. Hopium is also floating a 4% housing mortgage finance subsidy that is supposed to fall like manna from heaven [Refinancing Malarkey]. So for now the schemes might give BAC an opening to sell equity without extreme dilution. The problem with this market however, is that Gumnut-bankster "put" schemes seem to have very short shelf lives and are mostly resulting in sucker rallies. There just doesn't seem to be enough love for feeding Ponzi any more.