Warren Buffet buys into Goldman Sachs
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Scott Jagow: One person who says he's counting on a bailout is Warren Buffett. Yesterday, Buffet bought $5 billion worth of stock in Goldman Sachs. And he has an option for another five. He says he wouldn't have done that if he didn't think the government would act. Marketplace's Steve Henn has more.
Steve Henn: I was sitting in my office in Washington listening to Fed Chairman Ben Bernanke talk about how so many banking investments with real value were selling for fire sale prices. I kept wondering, if this guy is right and that's true where are the are all the savvy investors?
Where's Warren Buffet?
Johnson Illington: Well, obviously we know now.
Hugh Johnson runs Johnson Illington Advisors.
Illington: You know, it's a buyers market. And this pretty clearly indicates that it is a buyers market. He got very good terms and at the same time it is a good deal for Goldman. So from a psychological point of view, it tends to boost confidence. I think you'll see a good market today largely because of what he has done.
When it comes to investing Warren Buffet looks for bargains, and the fact that he sees them now on Wall Street could give others the courage they need to jump back in.
In Washington I'm Steve Henn for Marketplace.