Did you notice that Buffett got better terms with GE than he did with Goldman? That raised some eyebrows...the great industrial company getting sharked more than the shark, Goldman during a banking crisis. Well, GE's revenues are over 40% from their hedge fund, GE Financial Services. They have promised their shareholders to reduce it to 40% soon. My opinion, GE is hiding serious losses.
Remember, Buffett has not invested in equity yet, not Goldman or GE. He's betting on the debt side (and the bailout). He has also been acquired "on the team" to sell said bailout. My opinion is certain people are also buying Buffett's reputation which is officially an American commodity.
Notwithstanding, GE released an 8-K with an unusually timed warning.
But, it's not gravy on the debt side either. Bill Gross of PIMCO would not touch 25% yield Morgan Stanley even after Japan's re-cap. More on Bill Gross and PIMCO.
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