Can Buffet alleviate mortgage crisis?

[Toucano]

http://www.iht.com/articles/2008/02/12/business/mortgage.php

"The initiative was announced as Warren Buffett, the billionaire investor, offered to reinsure the municipal bond portfolios of three troubled bond guarantors, a move that, together with the Bush plan, bouyed Wall Street investors searching for any good news about the troubled mortgage market.

But Buffett's offer, already rejected by one of the companies, would do little to alleviate the problems they are facing on the guarantees they have made to investors who hold securities backed by mortgages, consumer loans and other assets."


Isn't there some way that the billionaires could buy and hold mortgages until the property values increase? Benevolent billionaires like Oprah, Buffett and Gates have SO MUCH MONEY! Can anyone think of a scenario whereby they could step in and do something?

[El Pinko]

1. Why should billionaires want to keep grossly overinflated housing prices high?

The market needs to correct. Any bandaids only prolong the inevitable and cause more pain to the economy in the long run, IMO.

[Demeter]

2. Buffett isn't Running a Charity

You have him confused with Mother Teresa.

[phantom power]

3. Buffet is simply taking advantage of a good buying opportunity.

Nobody can alleviate the mortgage crisis. Because the "crisis" is really just the unwinding of a highly under-regulated, over-leveraged and corrupted market.

Buffet is just taking this opportunity to buy some of the "good" stuff at a good price, since the fuck-ups who own it are in big trouble.