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When two legendary investors speak, that means double the reading pleasure for you. From our sister blog Investorazzi.com this morning:
“Warren Buffett: Fannie, Freddie Bailout Could Cost Hundreds Of Billions Of Dollars”
“If housing falls off another 15 or 20%, they’re going to lose some real money” on the bailout. (The “they” means “the government,” which actually means, “you”). “It could get into the hundreds of billions,” he said. But “if housing is close to bottoming, they might not lose much money at all.”
“George Soros Predicts Worst Of U.S. Financial Crisis Still To Come”
Sphere: Related Content“In an interview with French magazine ‘L’Express’, Mr Soros said he fears the worst of the US financial crisis is yet to come. Doubts over the solvency of financial institutions remain, hurting their ability to lend money to each other and to offer credit, he said.”
September 12th, 2008 at 10:08 am
“If housing falls off another 15 or 20%, they’re going to lose some real money” on the bailout.”
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In other words, the $50 billion the government has told the taxpayers it will cost them to bail out Fannie & Freddie is nothing, but since this will actually cost $300 billion, we are talking about real money.
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To boil this down one more time, $50 billion is NOT real money!
The quote at the top of this post is definitely the quote of the week.
-Mammoth
September 15th, 2008 at 2:07 pm
Thanks for the comment Mammoth. Ever notice the Feds tend to use the “best-case scenario” a lot (that is, when it suits their purpose)?