What makes me think things are going to work out ok is....

[napi21]

Warren Buffett. That guy is not slouch. He's as connected as you can get, and he knows the WD market better than most. If he's going to invest a large sum in Goldman, I'm convinced things will work out ok.

[Indiana_Dem]

1. He's really in tune with peak oil, too, isn't he? nt

[digidigido]

2. On The Contrary, it just means he thinks the bailout will happen

Warren's philosophy is buy an undervalued company when everyones selling it. If the bailout happens Goldman is undervalued
because let's face it, Paulsen used to work there. While they are bright guys, Buffet is making a bet that the bailout will happen
and he's getting prefered stock as well, so if it diesn't happen his downside risk is minimized.
This just means Berkshire Hathaway is making money as usual

[FrenchieCat]

3. From the article. Shows that Buffett does not "do" Stockmarket buys.....

Normally.


It will be Buffett's second major foray into Wall Street.

In the late 1980s, Berkshire Hathaway invested in Salomon Brothers Inc. When the investment firm admitted wrongdoing in bidding for U.S. Treasury bonds in 1991, Buffett became interim chairman and helped Salomon reach a settlement with the government before stepping down in 1992. Salomon was later sold to what is now Citigroup Inc.

[lutherj]

4. Things as they are, are changed upon my blue guitar ....

Warren Buffet is a decent guy. I like Warren Buffet. But I saw him speak at the end of some recently released documentary about the federal debt, and my impression is that he doesn't have a clue as to what's coming down the pike. He's stuck in the 20th century. I'll grant that he's made a hell of lot more money than I have, and I'm sure he's more intelligent than I am, but the guy is in his late 60s or early 70s, and from what I can tell he's never heard of peak oil. He thinks we're going to grow our way out of this mess. Well, maybe. But I think not.

[On the Road]

5. Goldman is Not a Good Indicator

Unlike many other financial firms, they are not deeply invested in bad mortgages. Earlier this year, Buffett also bought into Wells Fargo, which is also sounder than most of its peers.

The next giant to fail could be JPMorgan Chase. They have been sitting on a volcano or derivatives for years. And that will probably trigger some more. I mean, they've made it so far, but a month ago everyone thought Lehman was going to survive.

[Ex Lurker]

6. I've been thinking this for a while

everybody says JPMC is golden, but something just smells funny about them. I can't put my finger on it.

[On the Road]

7. You May Know Them Better Than I Do

I've just heard this from several sources.

In a market shakeout like this, the strongest remaining firms are usually in the best position to pick up the slack from their failed or weakened competitors. That kind of reinforced the decision.

[Winterblues]

8. Wasn't he also investing in foreign currency against the US dollar?

If this "bail out" causes the collapse of the dollar and gets our treasury bonds downgraded as a result doesn't he stand to make a very huge killing?