February 10, 2012

Pure crony capitalism

I used to look up to the guy but Warren Buffet is playing too close a role in this regime. From the Washington Free Beacon:
Buffett�s Bank of America
Warren Buffett�s stake in Bank of America Corp. increased in value by $154 million after President Obama and the U.S. Justice Department announced a $25 billion foreclosure abuse settlement with the five largest U.S. banks Thursday, records show.

Buffett invested $5 billion in Bank of America (BofA) on Aug. 25, 2011. As part of his investment deal, Buffett gained warrants that allow him to buy 700 million shares of Bank of America stock at a strike price of $7.14 a share. However, on Dec. 19, 2011, it was reported that Buffett was $1.5 billion underwater on his stock warrants, with shares of BofA stock trading at $4.94. But on Thursday, after President Obama personally announced the details of the settlement, BofA stock closed at $8.13 a share. The stock opened Friday morning at $8.31 and reached as high as $8.35 a share.

If Buffett had exercised his warrants Friday morning, he would have made $847 million. $154 million of that profit would have been related to the foreclosure deal.

This is not the first time Buffett has profited from Obama administration policies. In November 2011, it was reported that President Obama�s two-year postponement of the deadline to determine the future of the proposed Keystone XL pipeline would force North Dakota oil producers to rely more heavily on the Burlington Northern Santa Fe Railroad. Buffett�s Berkshire Hathaway Inc. holding company purchased the Burlington Northern Santa Fe Railroad Corp. in a total package worth $44 billion in 2009.

Buffett has personally contributed $5,000 to Obama this election cycle, while Berkshire Hathaway has contributed $30,800 to the Democratic National Committee.
The Magic Kenyan makes his cronies very rich while screwing over this nation. The oil that was going to flow from our friend Canada to our Texas refineries? China. From the Washington Examiner:
Canada's Harper talks oil with China as U.S. faces $4 gas
Just as he promised he would do if the United States rejected the Keystone XL pipeline, Prime Minister Stephen Harper headed to Beijing earlier this week on a four-day trade mission in which he is expected to seek a deal to sell millions of barrels of Canadian oil to China. Since China is aggressively pursuing energy deals around the world to support its economic expansion, expect Harper to come home with an official signature on the dotted line.

Harper is accompanied on the mission by dozens of Canadian business executives, including several from Syncrude, the consortium that produces thousands of barrels of oil daily from the Athabasca oil sands. That's the place the Keystone XL pipeline -- proposed by TransCanada, another north-of-the-border energy giant -- would have funneled 700,000 barrels per day to the United States, if not for Obama's rejection. Some portion of the estimated 20,000 new jobs that would have been created here will also be exported to China.

Meanwhile, here in the United States, besides continued high unemployment, drivers endured the most expensive January gas prices ever, according to the Los Angeles Times. "January is typically a month of falling gasoline prices because fuel demand falters in the slower travel weeks that follow the year-end holidays," the Times reports. "Not so this year."

The nationwide average price of regular gas was $3.37 per gallon last month, compared with $2.71 in January 2010 -- a 24 percent increase. And things are going to get tougher for gasoline buyers because prices traditionally rise in February and March as spring approaches. That's when refiners must switch over to more expensive federally mandated formulas that result in slightly lower emissions. According to USA Today, energy experts expect prices to be in the $4-per-gallon range this summer.
Thank you so very much Barry.
Posted by DaveH at February 10, 2012 7:54 PM
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