“Warren Buffett rescued Corporate America in 2008. He’s got $130 billion in cash to do it again”, this is the headline from CNN on Friday May 1st. I could not help telling myself, this must be a mistake.
The FEDs have lower interest rates to zero from 2.5. The congress has approved couple of Trillion dollars to be given to as bailouts to the rich under the CARE act which we all know they do not care. The FED balance sheet went from 4 to 6.5 Trillion dollars in one month (https://www.federalreserve.gov/monetarypolicy/bst_recenttrends.htm), yet the genius who wrote this article is looking for $130 freaking billion to make a difference!!
Now you can tell me that Buffet buying might give some good vibes. But here is the deal, if your money manager is waiting to see what Buffet is going to do, then why do not you put your money with Buffet. And if you are waiting for Buffet to take action, you really have no business in the stock market.