One small step for bank, one giant leap for bank-kind, at least in the eyes of a Goldman alum:
This Buffett thing is not only good for GS but it will SUPPORT THE MARKET, in my opinion. I'm not going to say straight up 10% from here, but here you have a guy who is drawing a line in the sand, and it's not just any guy. How many investors can pony that up without hitting the frozen credit markets? He did not choose Morgan Stanley, or Citi (that he once owned assloads of), he chose his very first investment in GS, when the PRICE FINALLY GOT CRAZY.
Hear that? I don't care if their growth rate will slow and their regulators will be crawling up their asses from here to Sunday -- they are going to find a way to make money, and it sure got a lot easier with some of the chumps (competition) out of the way. Buffett knows this because Byron Trott can get this guy to pull the trigger on just about anything, and by getting this done -- the mother of all "let me make one phone call" trades -- I'm going to be one of the first to say he will be running GS within the next 5 years (or sooner).
Another banker that is marking the bottom? Chris Flowers -- former GS banker of course -- who has looked at every finance deal since the start of 2007 but finally pulled the trigger on a bank in Missouri. Not sexy. Yes, Missouri. But it will allow him entry to buy distressed assets (FINANCIAL assets). When you finally get this shit -- the PE guys and BUFFETT -- buying shit, it's time.
I don't want to cause a panic buy out there, but dilution schmilution.
Of course, not even The Oracle can prevent Congress from fucking it all up. While I don't suppose that Buffett has been coached by Hank, he has to have enough feelers out there to judge better than most whether a palatable government deal gets done or not ... and he usually votes with his wallet
Let's just say I like my chances with Warren and the PE vultures better than Uncle Sam.