Ever noticed that when you change the rules to a game, the ones who start winning again the quickest are usually the smartest of the bunch. Everyone on Wall Street will agree that the bankers and traders at Goldman are the smartest of the lot. They make more money, with fewer resources than anyone else… and they lose less money, when things go sour. By choosing to invest in Goldman, Buffet has proven once again why he is the world’s wealthiest man. As the rules of global commerce are likely to change rather quickly (no short selling, fed as buyer of assets, guarantees for money market funds), the likely winners will be the smartest… or the quickest ones to adapt to this changing reality. Goldman will be raking it in, big time…

One could even argue that given Paulson’s background and the prevalence of ex-Goldman folks everywhere in Washington and on Wall Street (Thain, Corzine, etc…), Goldman might actually be involved in re-writing these new rules. It all goes to show that as always, the Golden Rule applies: He who has the Gold, makes the rules… Way to GO→ Warren!

DrJones