Buffett's Goldman Buy Stabilizes Stocks
Posted Sep 24, 08 9:16 AM CDT in
Business
(Newser)
–
Stocks rose slightly at the open, reports the Wall Street Journal, buoyed by Warren Buffett’s $5 billion vote of confidence in Goldman Sachs. The Dow Jones rose 21 points, while the S&P rose 0.3%, and the Nasdaq 0.9%. Capitol Hill will again command Wall Street's attention today, and while Congress may be skeptical, Buffett is behind the bailout plan. “I think it was the last thing Hank Paulson wanted to do, but there's no Plan B for this,” he said.
Buffett called the market downturn an “economic Pearl Harbor,” demanding instant action. “The market could not have taken another week,” he said. Buffett's is casting his $5 billion both as a vote of confidence in Goldman, which has lost 40% of its market value, and in Congress. Goldman also announced that it would raise $2.5 billion in a new common equity offering.
Sources:
Wall Street Journal,
Bloomberg
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