Say it Ain’t So Warren!

Despite Obama’s inability to stabilize Wall Street fears, Warren Buffett's Berkshire Hathaway Inc. announced yesterday that it would invest $5 billion in Bank of America Corp., a much-needed vote of confidence that sent the beleaguered bank's stock soaring 9 percent.

While some may be surprised, this this elephant (and many others) aren’t buying it. It seems the Buffet has taken his BFF relationship with General Electric Inc. and Goldman Sachs to a new level. As supporter of commonsense, free-market principles, I don’t believe ill will is in order for this billionaire. However, I am cryptically weary of his underlying intentions.

According to the ABCnews.com story, in late 2008, before Buffett made his investment in the company, Goldman Sachs' stock had fallen nearly 50 percent from its peak of $247.92. It jumped 5 percent immediately after the deal was announced. Buffett's investments in Goldman and GE paid annual dividends of 10 percent, and wound up paying off. Berkshire made close to $1.8 billion from the Goldman investment alone.

However, unlike yesterday’s Bank of America deal, those companies approached Berkshire with their friendship bracelet offerings, seeking financial support and Buffett's stamp of approval.

I don’t know about you…but it all feels just a bit too cozy and convenient. It’s no
secret that Washington D.C. politicos have had an incestuous relationship with Wall Street for decades. Do you know who the leading beneficiary from Goldman Sachs is?

If you guessed President Barack Obama, you’re right. No other candidate has benefited as greatly as Obama did from Goldman Sachs employees in 2008. Contrast the billions banks got from American taxpayers over the course of Obama’s administration, and the millions of dollars Obama and Democrats have received from Goldman Sachs over the years and your stomach just might just turn inside out. Yes, Republicans have received GS $$ too but not the same staggering amounts given to our fine Democratic Party — how’s that redistribution of wealth sitting with you now?

As of yesterday, Buffett had made a profit, on paper, of $357 million thanks to a surge in Bank of America's stock price after the deal was announced with the stock jumping up 66 cents, or 9.4 percent, from $6.99 to $7.65. Again, I scratch my head hmmm. I guess it’s okay for Buffet, Washington elites and his private sector BFFs to make change. But what about Obama’s economic mantra: there are some who have made enough money. This could be where Buffet’s “billionaire guilt complex” stems from. It’s a shame, because it shouldn’t.

A little birdie told me Bernanke is in Jackson Hole Wyoming speaking on the Fed’s future plans but again not giving specifics. Of course he isn’t. How could he?! I am sure Buffet and his friends are biting their nails. Honestly, I think America has witnessed enough Fed carnage, don’t you? If I were Ben right about now, I’d be taking a long walk around Jackson Hole’s Jenny Lake, staring at the Grand Teton and thinking about retirement in 2012. Then I suppose he, Buffet and Obama can take that long awaited vacation – oh that’s right, President Obama just came home from one.