Monday, November 24, 2008

Warren Buffett is a Dweeb!

Buffett says automakers need bailout or bankruptcy
Quote:
The government should insist top executives at Ford Motor Co., General Motors Corp. and Chrysler LLC invest a significant percentage of their own net worths in the Detroit-based companies, Buffett said, ensuring both executives and taxpayers would share in any profits or losses.

Buffett said the government should be able to drive a deal like one of the ones he makes when Berkshire buys businesses, because automakers appear on the brink of bankruptcy.

Buffett said he’d tell the auto executives, "’We’ll give you more upside (than bankruptcy), but you’re going to lose if we lose.’"
Great Idea! Why not expand this idea to all UAW workers so that we avoid the principle-client problems even more.
Ford {F} has market equity cap: $3.7 Billion {Price: $1.55}
GM {GM} has a market cap: $2 Billion {Price: $3.22}

Approximately there are about half a million UAW workers and thus each UAW worker merely has to pitch in $2,000 to buy GM and $3,700 to buy all of Ford. So why not make them invest in it also? Karl Marx would be surprised at the failure of workers to pay such a small amount to control the means of production. I am sure he is rolling over in his grave...

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