Wall Street Manna

An irreverent look at Wall Street

Tuesday, September 23, 2008

The Buffett bottom

Goldman Sachs is up nicely in the after-hours on news Buffett is putting in $5 billion, and getting warrants to buy Goldman at $115. The stock ramping shows that the market trusts Buffett's judgement.

Earlier today, Buffett said, in regard to the $700 billion Treasury plan "that it is exactly what I would do."

So tomorrow, the Goldman investment, and his endorsement of the bail-out will make the news.

Next, we'll have a Becky Quick interview with Warren on CNBC.

With no shorting in the financials, and news of a $700 million raise by Capital One, a $5 billion investment in Goldman Sachs by Buffett and a concurrent $2.5 billion stock offering, you have to like this market at these levels.

It looks like we got the retest.

Time to get out the rose colored glasses again.

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