Chronicles of a Wandering Mind

Interesting links for September 26th from 09:16 to 09:20:

• To Splurge Or Not To Splurge – Look at what Buffett did with Goldman Sachs. He got a $5bn investment at what looks like an attractive valuation, he got preferred stock so his money gets out before any other equity holder, he gets a 10% interest rate, and 100% warrant coverage in the money. That's the kind of deal the investor of last resort gets.
• Andy Kessler: WSJ: Clean Up Print – You can slice the numbers a lot of different ways. My calculations, which assume 50% impairment on subprime loans, suggest it is possible, all in, for this portfolio to generate between $1 trillion and $2.2 trillion — the greatest trade ever. Every hedge-fund manager will be jealous. Perhaps Mr. Buffett is buying a small piece of the trade via his Goldman Sachs investment.
• Barack Obama, A Free-Market-Loving, Big-Spending, Fiscally Conservative Wealth Redistributionist – NYTimes.com – John McCain’s economic vision, as he has laid it out during the campaign, amounts to a slightly altered version of Republican orthodoxy, with tax cuts at the core. Obama, on the other hand, has more-detailed proposals but a less obvious ideology.