Warren Buffett's $600 Million Interest-Free Taxpayer Loan

PART TWO OF EXPOSING BUFFETT

How The Government HOSES You To Help The Insanely Rich

Start wartching at the 1:15 mark. Buffett has more than 30 years to pay back half the loan and the whole enhcilada is interest-free courtesy of you and me.

--

David Cay Johnston, Author and Pulitzer Prize Winner

The problem starts with government subsidies, says Johnston. States are spending around $70 billion on government subsidies, he estimates. That doesn't include the hundreds of billions more doled out in federal subsidies.

"Is that capitalism?," he complains. "Go compete in a competitive arena. Don't go to Washington and say 'give me money' either by saying 'I don't have to pay taxes' or forcing other people to pay taxes that go to me. Go earn your money in the marketplace."

What's even more striking is that many of these unfair advantages are given to the biggest political contributors. The Wall Street bailouts are a perfect example.

"There's been a massive turnover of money to people who didn't have to face the consequences of the market," Johnston says. "Goldman Sachs got its bad bets paid off at 100 cents on the dollar.  I’ve never seen the government do that for me."

Here's a great read on how Buffett was saved by the bailout:

Warren Buffett's Betrayal

Comments

[DailyBail]

WARREN'S ADVICE FOR AMERICA

http://dailybail.com/home/get-on-your-knees-and-thank-the-lord-for-ben-bernanke.html

Get On Your Knees And Thank The Lord For Ben Bernanke

[S. Gompers]

Did Warren ever pay his huge back taxes?

[Daily Bail]

GOMP

I don't think so. I searched for a few minutes and didn't find anything about the case being settled. Here's a pretty good summary of what he owes.

http://www.theblaze.com/stories/2011/08/30/how-much-is-buffetts-berkshire-hathaway-back-tax-bill-exactly-about-1-billion/

Buffett owes $1 billion in back taxes

[Daily Bail]

Tax-lover Buffett dodges taxes in Goldman deal

http://www.nypost.com/p/news/business/tax_lover_buffett_dodges_taxes_in_uzmYhR2L4TyQpktX93eNOO

New Story

[Josie]

Re: Buffett and GSuchs. Buffett has publicly said many times that investing in I-banks' shares does not make sense. Why?

First, compensation. Way too rich in that ~50% of the profits each year is paid out to the employees in bonuses (and why not, it's not like they need to build plants).

Second, the long term outlook is murkier than coke, ketchup and choo-choos. Better places to have his $, he thinks (although I think GSuchs would be the last one standing after an On The Beach-like nuclear Armageddon). The $5bil preferred lending deal in '08 ("Lloyd pays me $16 every second and he can't stand it, tick-tock") was a beauty because Buffett knew USam would not allow them to fail and guaranteed the deal through the Fed, which allowed GSuchs bank holding status and access to the discount window.
Not to mention $5bil to Buffett is peanuts.

Buffett is not your loving Gfather. He is a cutthroat capitalist who buys "productive" businesses on the cheap. Ask Charlie Munger. It's all about price, assuming the long-term outlook is good. Further, he knows that in the present environment, saving on or avoiding taxes is part of the business model. Period. It's not good press, so he fails to mention this in public, but his actions show this to be the case.

It's comical to watch CNBC and Becky "I'm a Rutgers girl" Quick interview him. The Beck bats her eyes and flashes the snaggle-teeth. Kernen fellates. ARS squirms in fear. They also never seem to mention that the big boss at NBC, Burke (who the CNBC CEO reports to), sits on Berkshire's board.

[S. Gompers]

Thanks Steve, I did not think so.

[DailyBail]

The $5bil preferred lending deal in '08 ("Lloyd pays me $16 every second and he can't stand it, tick-tock") was a beauty because Buffett knew USam would not allow them to fail and guaranteed the deal through the Fed, which allowed GSuchs bank holding status and access to the discount window.

---

EXACTLY

He made a bet then did everything he could in the media to push for a bailout.

[SKINFLINT]

There was a story in the New Yorker a couple of years ago in which the IRS was going after the Church of Scientology for unpaid taxes. Finally after many court hearings and several years of attempts, the Feds asked the head of the church to come to a meeting. With him were several of the church officers and when they got to the meeting, the feds asked them how much they would settle for. It was an amazing piece of journalism. Maybe someone can find it. I tried. The feds are only willling to spend so much time and effort to go after these guys and if they go over budget, then they will stop. That was the gist of the story. Won't happen to you or me though. Just sayin.

[J Jordan]

Buffett made a deal with Obama. Cancel tax debt in exchange for use of his name to push higher taxes on " wealthy". They are crooks.

[john]

Buffett's Berkshire nears deal for Precision Castparts: WSJ

http://mobile.reuters.com/article/idUSKCN0QD0LD20150808?irpc=932