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my point is: yes, all government action will be paid by the people. but we do not know if the price is not worth it. if i want a parachute i do not care too much about its price. two guys falling in free air: "i tell you, you really overpaid for that piece. you got fooled all day...

let us face it: NOBODY knows what will happen to a complex system of the magnitude as we see it in today's economy, when certain pillars fall. it could well be that the proclaimers of extremely free markets are right, and letting everybody default would finally be the right solution. but...

BTW i find it even tougher that he SOLD it ...

good that finally someone with such clear perspective enters the discussion.

but my true point is: WB ran a crusade against this kind of product. admittedly it is a relatively simple one, but nevertheless it IS a complex derivative and i guess he already regrets big time not resisting the temptation ...

i am very suspicious to this kind of trade. usually there is an effect that fools the human eye. in this case for example it looks like an obvious trade for buffet. but if you take the current situation into account, how MTM is bringing him into trouble, things start to look different...

BTW in these days marked to market becomes an issue even for very long term investments. do not forget that, be the option as much european as she wants, there is a current market price of such option. and if this price shows a loss, then buffet shows a loss. he is basically short VIX 20 at...

"Buyers of the derivatives would be entitled to billions of dollars from Omaha, Nebraska-based Berkshire if four stock indexes drop below agreed-upon levels on dates beginning in 2019." this is a complex option on a portfolio of indices. corrs start to play a role in this. this is not...

no. there is no free lunch. this is a zero sum game. actually adjusted for all brokerage involved in rebalancing the hedges, it is a negative sum game. one guy looses. it just might depend on the intensity of the analysis, whether this becomes obvious or not. all of course IMHO.

touche. in fact i know nothing about him.

you'd better know the game very, very well to get into this playground. many have burnt the fingers up to their shoulders in these great trades ... it is not an easy thing to detect the weak spots in such structures. from what i know you have many accurately priced issues in there and one...

it is impossible to determine whether that was a great trade or not if you don't have the deal specifics and thus can derive whether the options was priced accurately. just because it sounds like a good trade means zero nothing nill. that is what these options are all about: hide some...

sorry my dumb question, what does "off the counter" exactly mean? we are not talking "over" the counter here? where GS could easily be the other side?

i doubt that volwswagen or BMW workers or guys at daimler earn less or have less privileges than GM or F. the US guys got it wrong for quite some time. i guess it was the hybris of being the biggest for too long. they even started to believe they invented the car ... shrink. get back to...

now what a surprise.

joab, same thought here. we are at the volatile bottom of the major US indices. i do not expect to see the sp far north of 1.000 any time soon, but i think the low is in. my worst guess is 700, i don't see it tank lower.

... why the hell did he do that? does not sound at all like the person i used to see in him. but i have never been a devotee in the first place ... http://www.bloomberg.com/apps/news?pid=20601087&sid=aD0w4TPcxWrE&refer=home

that marks another important milestone in this turmoil IMO.

the problem with the current mess is that many of those responsible acted bona fide. greenspan was very sure he did the right thing. and those people, the crowd, who look for guys to blame do not see their own embedment. i find it frightening when politicians and fed chairmen truly believe...

i don't talk about backadjusted prices.