If I was going to have my company beat senseless, I couldn’t think of anyone I’d rather have do it than this kindly old guy from Omaha.  Seriously, the guy is an assassin!  Goldman and GE are Dow components and are about as important a couple of companies as you’ll find anywhere.  They capitulated to such onerous terms to get at Buffett’s cash that you just have to take off your hat to the guy.  Let’s face it - there are only two positions to be in right now - cash and fetal.  Wow - the credit markets are so frozen that these two companies have to pay this kind of vig to get money to ensure their liquidity.  Tony Soprano would be so proud.  Don’t take this as a diatribe against Warren Buffett - the guy’s my hero - my hat is definitely off to the guy.

Well the house couldn’t agree on a bailout (or as Jack Welch is trying to get into the vox populii - “restructuring”).  After a little research, it was determined that most of the nay votes were from people in tight races.  Their political opponents back in their home constituencies, were waiting with huge knives to use a yes vote against them, as most still tend to see this legislation as lining the pockets of Wall Street’s fat cats.  Well now the Senate has passed the bill ( you might have heard of it - “No Banker Left Behind”) albeit with some of the most ridiculous pork I have ever seen (help for an arrow manufacturing company, racetrack construction, help for businesses in American Samoa, fisherman damaged by the Exxon Valdez etc. etc.)  The most important financial legislation of our generation and those nitwits in Washington can’t keep from hanging more junk on the bill to make it more palatable for back home.  Well now the house members can say that they fought to have the bill amended to benefit Main Street and they will most likely vote for it on Friday.  If they don’t - the reaction will not be pretty.  I don’t think the sky will fall but the markets will sell off that is for sure.  It is so political that the credibility of the final product will certainly be met with a lukewarm response at best.  Honestly, the whole thing had PR problems much worse than substance problems.

Do you know what I fear?  Now that lenders can move their problem loans onto Uncle Sam’s balance sheet - what motivation will there be to work something out with people.  Pay up or get out!  What do they care - they can just flog the bad loan off into the government portfolio.   Under the law of unintended consequences - this may just add to the foreclosures.  I have a friend who’s son made his last mortgage payment in January - other than computer letters - no one has contacted him.  He figures he’s good for another 6 months.

So back to the Oracle of Omaha, Mr. Buffett - Mr. Buffett - you are a prime example of why we have such weak wiener politicians.  We don’t get the best minds because they are busy making money.  Politics is for “C” students like George W. Bush.  At the dawn of this country - all of the best minds of the time were in that room in Philadelphia hammering out the Constitution.  Now we have a country of 250 million people - where are all the “best minds”?  They sure aren’t in politics.  As Jackie Mason once said - want to clear up the deficit overnight - put all the senators and representatives on commission!  (insert rim shot)  When you really stop to think about it - it might be a possibility, no? 

Well - I’m going to put the dogs to bed early tonight so I don’t miss a minute of the number one reality show on TV - The Biggest Loser - yep the VP debates!

Peace out!