Warren Buffett is making a $3 billion investment in General Electric in a vote of confidence designed to ease global market fears about the health of its GE Capital unit. He calls GE the "backbone" of American industry.Today's Buffett deal is very similar to his backing of Goldman Sachs through a similar $5 billion investment. Like the Goldman investment, he's getting very favorable terms.
In a live telephone interview from his jet, Buffett told our Becky Quick that he's seeing more investment opportunities as prices come down. He also repeated his prediction that Congress will pass legislation to help stabilize the nation's credit markets. If not, he predicts we'll have "terrible, terrible, terrible problems."
Source.
One thing we need to know is that with both the Goldman and GE deals, hes getting deals that are far more favorable than any tom and cat would get on the street, wall or main. Hence, it really gives us, the investors, really little confidence as claimed.
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