Warren Buffett Comments On The Financial Markets

Today, CNBC had Warren Buffett on Squawk Box, after he made a $5 billion investment in Goldman Sachs (NYSE: GS). Buffett said there is no better firm on Wall Street than Goldman Sachs. Warren said he did the deal because Goldman Sachs came up with idea that made sense to Buffett. By the way, Buffett did note that partner Charlie Munger was "all for" the Goldman Sachs deal.

Buffett noted that Berkshire Hathaway (NYSE: BRK.A) would have some interest in some of AIG (NYSE: AIG) assets. Almost every financial institution has spoken with Buffett about doing something.

Buffett did also talk about the financial markets in general. He said we were very close to a totally dysfunctional financial system last week. The market could not take another week like last week.
This situation isn't just Wall Street's problems, it's everyone's problem.

Buffett says the government should sell a small piece of what they take over, that way it could establish a market price for what the government buys. Buffett does think that ultimately congress will pas the bailout package and the government stands to make money on the deal. He did note Hank Paulson is the best person for this job and should be asked to continue on after his term is over.

Lastly, Buffett did say that in ten years, we will look back and say, there were some incredible bargains that could have and should have been bought.

Goldman Sachs Group, Inc. is global investment banking, securities and investment management firm.
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