2008-09-25, 10:08 AM
There wouldn't be a stimulus package to be distributed. The government needs to deficit spend in order to create this bailout plan. The idea is, in the long run, saving these companies now will better off American citizens and the rest of the world with the cost of short term deficit spending and extra taxes by American citizens.
What is more exciting is Warren Buffet stepping out to buy $5billion worth in Goldman Sach's preffered stock with a warrant that gives him the right to buy out another $5billion. If more high net-worth investors step out and act like Warren Buffet, the government won't have to spend so much and American citizens won't have to pay for it. There are plenty of rich executives and assuming these companies recover in the long run and everything normalizes, then these large sum investments which may seem foolish in the short run will be EXTREMELY profitable.
What is more exciting is Warren Buffet stepping out to buy $5billion worth in Goldman Sach's preffered stock with a warrant that gives him the right to buy out another $5billion. If more high net-worth investors step out and act like Warren Buffet, the government won't have to spend so much and American citizens won't have to pay for it. There are plenty of rich executives and assuming these companies recover in the long run and everything normalizes, then these large sum investments which may seem foolish in the short run will be EXTREMELY profitable.