New flu variant, the H1N1 GS mutation

[Cees Binkhorst]

REPLY TO: D66 at nic.surfnet.nl

Voor de niet-kenner: 'tax credit' = gerealiseerd verlies in belasting
aangifte (hier van belang: dat niet tegen toekomstige winst kan worden
afgezet).

Groet / Cees

http://www.ritholtz.com/blog/2009/11/treasury-dks-goldmanfanniebrk-tax-credit-scam/print/
Treasury DKs Goldman/Fannie/BRK Tax Credit Scam

Posted By Barry Ritholtz On November 7, 2009 @ 10:17 am

Due to an unexpected outbreak of rationality (and perhaps
embarrassment), the Treasury department has rejected requests of Goldman
Sachs and Berkshire Hathaway to purchase Tax Credits from Fannie Mae.

This paper transaction would have provided precisely zero value to the
taxpayers, and allowed these firms to add to the piles of bailout monies
already received by avoiding billions of dollars in taxes otherwise
legally owed. It would have been a license to steal.

The sheer arrogance, the colossal gall involved boggles the mind.

And while we expect this sort of behavior from the Vampire Squid — they
take pride at Goldman in not just being whores, but in being the highest
paid callgirls in town — it is stunning to see such behavior from the
usually politically astute Oracle Tentacles of Omaha. For Warren
Buffett’s Berkshire Hathaway to team up with Goldman Sachs (which he now
owns a healthy chunk of) is a bit of a revelation: We have been spun by
his genteel manner, his aw shucks down-home-isms, his off Wall Street,
less bloodthirsty approach to investing, into somehow believing he was
different.

We have been duped.

We should not have been. Buffett has been the biggest shareholder in
Moody’s — a collection of filthy whores and pederasts who were one of
the main contributors to the economic collapse — should have raised
serious questions as to his judgment in our minds. That he sat by
silently as they did their worst, sodomizing the nations credit system
for fun and profit was a powerful indictment of Buffett as someone far
different than his public persona. In retrospect, as Moody’s was helping
to destroy America’s financial system, his merely spouting off aphorisms
about about Financial WMDs now looks too cute by half.

Those of you who used to respect Warren Buffett might consider moving
him off your increasingly short list of participants in the marketplace
who behave ethically. This crude attempt to steal billions — coming on
the heels of the bullshit about “Investing in America” by buying
Railroads — is a shock to me; perhaps that is a testament to my naivete.

Perhaps the Oracle of Omaha has been infected by a new flu variant, the
H1N1 GS mutation.  It is usually non fatal to the host, but destroys its
reputation . . .

Goldman Sachs' and Warren Buffett's BRK Attempt Fannie Mae Tax Scam
Nov 08, 2009 - 02:56 PM

By: Trader_Mark

Stock-Markets

Best Financial Markets Analysis Article
Some great posts this weekend over at "The Big Picture" by Barry
Ritholtz; Barry is essentially the "trailblazer" of financial blogging
and many a blogger has followed in his footsteps.  In my piece this past
week on the Berkshire Hathaway (BRK.a) Burlington Northern (BNI) buyout
I didn't have time to get into it but detail oriented readers might of
noticed this seemingly throwaway line I tossed in:

.... of course Warren wraps himself in the US flag in his public
reasoning for the purchase

If there is one man who bests Cramer at self promotion it is Warren
Buffet.  Now let's be clear he is an investing genius... a marvel.  But
for anyone who thinks he is any different than "take your lunch money
when your eyes are averted" top honchos at the investment banks, you
have been duped.  He is walking Capitalism 101 - the good, the bad, and
the ugly.  Carl Icahn with a far better publicity machine; operating in
a corporate socialist state. I didn't post it on the blog but early in
the week it came to light that Goldman Sachs (GS) was attempting to buy
some tax loss credits from Fannie Mae.  These credits are useless to
Fannie because Fannie won't be making money anytime this decade... but
they would of been a boon to Goldman since they would allow the firm to
reduce their tax obligation to the US - need a way to shield those gains
from the 98% winning percentage.  My first thought was "have these guys
no shame?" considering Goldman is only around due to the US taxpayer.
Then within the time it takes a Wall Street high frequency trading
computer to make 8000 trades (1/4000th of a second) I remember... no
Goldman has no shame.  Not in its current form anyhow.  And as a pure
capitalist - it's a brilliant move... why not try?  Obviously this would
of been a public relations nightmare for the government so other than a
story in the Wall Street Journal I thought it was dead in the water.
But lo and behold, midweek Warren Buffet (who is now a major stakeholder
in Goldman) swoops in and puts his backing behind the Goldman bid.   Oh
that cute and cuddly "grandpa" guy from Omaha....it must be "ok" then!

Thankfully the Treasury saw this would STILL be a public relations
nightmare even with good ole Warren giving his gold plated seal of
approval.   From there let's look at 2 posts from Ritholtz... gems.
Note - if you are not familiar Buffet has been a huge backer of Moody's
who is one of the many important pieces of the very broken puzzle that
led us into this financial disaster. I have been struck that Buffet has
not once come out and said (a) what Moody's pulled off was a massive
scam and either (b) I know that being in an oligopoly type of business I
was benefiting from this scam or (c) I was duped.  And let's just be
blunt and say the chances of Buffet being duped are between null and
void.

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