And, Bailout Wednesday is read “Quantitative Easing II,” also known as printing money. 

Basically the FED creates money out of nothing and then buys assets from institutions.  Some, if not most, of these purchases may consist of distressed assets (market value is meaningfully below book value).  Taxpayers are awfully generous to enable banks and other financial institutions to indirectly dump their bad assets on them.

To wit, taxpayers are so generous they even elect their representatives and politicians who are backed by financial institutions and other lobbyists.  Fortunately, there are unlimited campaign contributions to help determine the best politicians money can buy (see link below):

Who Owns Congress? A Campaign Cash Seating Chart 

Nevertheless, in developed nations, there is a saying that a people deserves its politicians; or, the politicians are a reflection of their people.

Yet another aspect of Buffett engaging in financial shenanigans.  Instead of adhering to accepted SEC guidelines concerning marking down long term assets to their objective market values, Buffett’s Berkshire Hathaway decided to mark its assets to wishes, not unlike many of the zombie banks and firms such as Enron and others.

Accordingly, here are two articles by the irreverent Zero Hedge highlighting the progressively disturbing behavior of Berkshire Hathaway:

Berkshire Takes Accounting Rules Into Its Own Hands, Tells SEC To Stuff It

“A new just released stunner discloses the unprecedented level of hypocrisy attained by Warren Buffett, for whom apparently accounting rules are swell, except when he actually needs to follow them.”


Full Text Of Berkshire Letter Deciding To Override SEC Accounting Policies

"We eagerly await Ms. Becky Quick's reporting on this latest development.”

And, here is a link referencing an article by Michael Lewis titled “The Temptation of St. Warren.”

As one commenter stated, “Buffet was a crook as a youth; is he now being revealed as a crook at the end of his career, too?”