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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Les H who wrote (227346)	11/4/2009 10:10:28 AM
From: saveslivesbyday	Respond to of 306849

Les, why spoil a perfectly good manic episode with a reality check?

To: Les H who wrote (227346)	11/4/2009 10:16:09 AM
From: Les H	Read Replies (1) \| Respond to of 306849

Warren Buffett confirms to CNBC's Becky Quick that Berkshire Hathaway has made changes to some of its controversial bets on the long-term health of stocks. Buffett told Becky last night by telephone that roughly $2 billion of put options on the benchmark S&P 500 stock index have been altered. Changes have also been made to a derivative on a foreign stock index, but he's not saying which one. Since their strike prices were set to the level of the S&P at the time the 'old' contracts were written, and the index has dropped severely since then, the 'old' contracts would not have reached break-even unless the S&P gained about 70 percent in the next 18 years. The 'new' contracts become money-makers if the S&P rebounds by just 15 percent over the next 10 years. It's an easier target to reach, but there's less time available for the S&P to move higher. cnbc.com Published: Monday, 18 May 2009 At the time, the S&P 500 was trading at 910.