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alstry (35.70)

If this doesn't flag WARNING.....nothing will!!!!!!!!!

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September 10, 2008 – Comments (9)

Berkshire Hathaway subsidary in Kansas to stop insuring bank deposits above FDIC limit

CHARLOTTE, N.C. (AP) -- A Kansas company that is part of Warren Buffett's Berkshire Hathaway Inc. has stopped selling private bank deposit insurance above the amount guaranteed by the federal government, signaling that billionaire investor Buffett may be worried about future bank failures.

Kansas Bankers Surety Co. confirmed Wednesday that it has ceased soliciting new clients for their "bank deposit guaranty bonds," a product that backs deposits above the $100,000 limit that is guaranteed by the Federal Deposit Insurance Corp. for many bank accounts.

It also plans to cancel existing policies in coming months.

http://biz.yahoo.com/ap/080910/berkshire_deposit_insurance.html

The key part is the last sentence.  Basically, Buffett is shutting down his banking insurance business.  There are not many people in the world that can analyze banks as well as Warren Buffett. 

Basically he has lost confidence in his ability to insure bank deposits profitably.  If Buffett is worried about banks......shouldn't we?????

If the banking system is suspect.....isn't the foundation of our entire economic system suspect????

 

 

 

9 Comments – Post Your Own

#1) On September 10, 2008 at 4:11 PM, jesusfreakinco (29.61) wrote:

Good find, Al.  I can't believe the writer put that in the article.  

JF

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#2) On September 10, 2008 at 4:21 PM, givmeabreak (29.72) wrote:

That was one of the top story links on yahoofinance. I can't believe the market did not react to that.

Which brings me to a question. If the many members here are convinced we are all screwed, the sytem is rigged, and the banking industry is toast with many big failures yet to come, why not put all your dollars in SKF and sit and wait for huge gains?

Even if it takes 1-6 months, it would seem to be the easiest bet to make based on all that is posted on CAPS.

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#3) On September 10, 2008 at 5:38 PM, alstry (35.70) wrote:

$1000 per barrel Oil....the only problem is any buyers......

MOSCOW, Russia (AP) -- The Interfax news agency is quoting Russia's Defense Ministry as saying that two Russian strategic bombers have landed in Venezuela as part of military maneuvers.

Interfax quoted the ministry as saying in a statement that the two Tu-160 strategic bombers landed in Venezuela on Wednesday.

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#4) On September 10, 2008 at 6:11 PM, jesusfreakinco (29.61) wrote:

Russia trying to bankrupt the US the same way the US bankrupted the USSR.  Unfortunately, they are holding a signficant oil card over the US and its Allies.  They seem to be exerting their authority in Russia when the US seems like it has no Allies to stand up to them.  We live in interesting times indeed... 

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#5) On September 10, 2008 at 6:18 PM, dwot (99.50) wrote:

Wow...

Question I have, what financial institution does Buffett use?

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#6) On September 10, 2008 at 7:20 PM, dinodelaurentis (59.26) wrote:

Buffet uses the First National Bank of My Hip Pocket.

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#7) On September 11, 2008 at 12:16 AM, zygnoda (26.65) wrote:

Another good post.  I saw this earlier today and I'm very happy to see that your mentioning it.

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#8) On September 11, 2008 at 1:41 AM, daayoo (< 20) wrote:

I saw that on Denniger's site today. I closed my last long today in my real acct. I only hold puts. This is really scary what is going on right now.

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#9) On September 11, 2008 at 12:01 PM, bostoncelitcs (74.15) wrote:

Washington Mutual's (WM) tanking.....maybe Buffet knows something

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