How Obama and Buffet FIRED 40,0000 Workers in One Day!
( and doubled Buffet’s investment in the process)
While Obama and Buffet are working on finding new ways to fleece middle class America of more of our money to finance the salaries of the new storm troopers, the SEIU, Teamsters and Teacher’s unions and the various ACORN spawned organizations, the two are simultaneously prosecuting an all out war on the private sector.
To hear the old kook tell it the idea came to him while he was playing in the bathtub.
Those of us who no longer believe in the tooth fairy prefer to to dig a little and find out just exactly how did this seemingly Archimedian epiphany come to the so called Oracle of Omaha.
The Buffet official fairy tale is that he was in the middle of his “splish splash I was taking a bath” when he just decided that he would invest $5 Billion dollars in the moribund Bank of America. Gee ain’t that just peachy! It’s right up there with the Obama birth certificate!
Let’s just quickly go over a few facts including the time line of the events that preceded Buffet’s Eureka moment.
On August 26th Warren Buffet announced that Bank of America agreed to give him the most incredibly advantageous terms for his investment of $5 billion and as you know Buffet claimed that the idea came to him in the bathtub.
While we have no evidence that Warren Buffet actually takes baths, in fact many have complained about the strong fecal odor emanating from his mouth, we do have evidence that Warren Buffet visited the White House the day prior to announcing his deal with Bank of America.
Obama and Buffet supporters argue that the two events are not mutually exclusive and that Buffet and Obama may well have discussed the deal in a bathtub.
Warren Buffet with Obama’s help just about doubled his money in under an hour
The terms of the deal that Warren Buffet got from Bank of America are absolutely incredible! Buffett bought preferred shares for which he will get 6% interest in perpetuity unless Bank of America pays him an additional $250 million to go away and he also received some very juicy warrants.
Warrants are a means of participating in the increase of the price of the stock. Say that you bought , in this Buffet got them for free, warrants that allow you to buy Bank of America shares at $7 per share; also known as the strike price. If the stock goes to say $9, then you can exercise your warrants and get the stock at the strike price of $7 and immediately turn around and sell the stock at the market price of $9, thus making a $2 per share profit – on something Buffet got for free. You can also sell the warrants for the intrinsic value (the difference between the strike price of $7 and the market price $9), which in this case would be $2. That’s just what happened on August 25, a few minutes after Buffet announced his investment except that the warrants didn’t go to $2 but went to over $5!
Bank of America stock soared and the warrants were worth $5.49 PER SHARE OR ALMOST $4 BILLION ! I wonder how much of that will find it’s way in the Obama campaign coffers?
Warren Buffet with Obama’s help just about doubled his money in under an hour, making a $4 billion dollar paper profit on his $5 billion dollar investment.
Bank of America announced record number of layoffs
Let’s remember that Bank of America got $20 billion dollars of taxpayer funded TARP money and another $118 billion dollars worth of loan backstop guarantees; the same kind of guarantees that Solyndra got and now we have to pay. You’d think that maybe the American people who gave bank of America so much more money that Warren Buffet did would maybe get some of those warrants… Alas only Obama bathing buddies are allowed such “luck.”
So what is the response from the White House and Warren Buffet ? One would think that Buffet would be content with his and Obama’s plunder of this company that has gotten so much taxpayer money!
Well, on September 9 , just a few days after getting $5 billion from Buffet, Bank of America announced the lay off of 40,000 workers! The reason that they did this is so that they can save, yes , you guessed it, $5 billion dollars!! Isn’t that just such a coincidence?
So while Obama and Buffet are planning to continue to fleece us with additional confiscatory taxes and go on their national dog and pony show to convince the few gullible Americans that still believe their BS that this will somehow save us, both Obama and Buffet are plundering American companies and laying off record numbers of workers.
Apparently, Obama and Buffet are only concerned about giving jobs to government employees and the tiny percentage of workers who are union members.
Employees of free private companies and non union workers are being fired in record numbers by Obama and Buffet.