Oct 12 (Reuters) - Leaders of euro zone countries held an emergency meeting in Paris on Sunday where they agreed on the framework for pan-European measures to prop up the battered financial sector and halt market panic.
European Commission President Jose Manuel Barroso, European Central Bank President Jean-Claude Trichet and British Prime Minister Gordon Brown were also in Paris for the meeting.
LONDON (Reuters) - Governments across the world launched multi-billion dollar bailouts on Monday to shore up tottering global banks and Britain called for a new Bretton Woods agreement to reshape the world financial system.
The slew of bank bailouts worth hundreds of billions of dollars were designed to stave off the world’s worst financial crisis in nearly 80 years, accompanied by declining global economic growth and the threat of widespread recession.
“Only by global action can we fully restore the confidence that is needed and build the international financial order,” said British Prime Minister Gordon Brown.
Markets fixed?
Downward spiral?
Strong rally followed by hyperinflation?
“Fixed” for now, until it comes back worse in a few years?
I think everyone can agree that NOTHING has be resolved. The government and federal reserve simply plugged the hole in the leaky balloon. ALL of our problems still exist, most importantly the growing national debt.
Well, Bushy boy after meeting with the Illuminati, excuse me, I mean G20 is now going to pump another $250 billion into the banks.
Talk about pressed for time but, he did it.
One small step for man, one giant leap for the New World Order.
Yeah, don’t know if he would take the job but I hope Obama makes him treasury secretary if elected, like he said. I think even if he had the same policies as Paulson, your average Joe Sixtheplumberpack would trust a lot more that they weren’t headed to financial ruin if he was at the helm, whereas they never heard of Hank Paulson until a month ago. That and he’s damned smart. The time for government made up of all smart people has come again.
Now as he stated him and I both agree with Buffett and well if you dont think buying in now and holding 2-3 years will yield gains well I dont know maybe you are right and time will tell. Anyhow just wanted to share a response to Buffetts article.
The following First Take is real-time analysis and opinion by the MarketWatch commentary team.
NEW YORK (MarketWatch) -- If Warren Buffett is buying stocks, should you?
The answer, unequivocally, is yes. That is, if you can get Warren's terms. And even if you can get those sweet deals, be careful.
Those are the warnings investors should heed after Buffett's now infamous commentary published in the New York Times on Friday, "Buy American. I Am." Judging by the market's response -- the Dow Jones Industrial Average ([INDU](https://us.etrade.com/e/t/invest/quotesandresearch?qmenu=2&prod=INDU:US:INDX&cmenu=DetQ) ) was up nearly 3% in afternoon trading -- investors are following America's most famous investor. [See Buffett commentary.](http://www.nytimes.com/2008/10/17/opinion/17buffett.html?_r=1&ref=opinion&oref=slogin)
But those same investors should be careful. It's not that Buffett isn't smart, he is. But at this stage of the game, Warren Buffett doesn't buy stocks on the open market by calling his broker, he buys them in bulk.
For instance, he didn't just go out and buy battered shares of General Electric Co. ([GE](https://us.etrade.com/e/t/invest/quotesandresearch?qmenu=2&prod=GE:US:EQ), [Trade](https://us.etrade.com/e/t/applogic/OrderForm?Symbol=GE) ) on the open market Oct. 1. He also received $3 billion in special, preferred stock. Those shares will pay a 10% dividend for at least three years and if, after that, GE wants to buy it back they will have to pay him 10%. Buffett also got warrants to buy GE stock that at the time was worth a 13% discount to existing shares.
The same principle applied with his investment in Goldman Sachs Group Inc. ([GS](https://us.etrade.com/e/t/invest/quotesandresearch?qmenu=2&prod=GS:US:EQ), [Trade](https://us.etrade.com/e/t/applogic/OrderForm?Symbol=GS) ) just a week earlier. Buffett again bought $5 billion in preferred stock. He'll get the same 10% dividend and $5 billion in warrants at $115.
The problem for Buffett is that his warrants were becoming worthless as GE and Goldman stock fell. One cheap, easy way for Buffett to reverse his losses is by penning an editorial using his huge sway, folksy style, and hints of patriotism to stir up some buying.
Investors should, in the end, be mindful of Buffett's advice, "Be fearful when others are greedy, and be greedy when others are fearful."
And when the "others" are investors driving very greedy sweetheart deals?
Wait until you can get your own.
