Economy

Warren Buffett phoned Treasury Secretary Hank Paulson with a stimulus idea when the 2008 financial crisis erupted. It may have saved the US economy

warren buffett hank paulson
U.S. Treasury Secretary Henry Paulson (L) shares a laugh with financier Warren Buffett, Chairman and CEO of Berkshire Hathaway, at the Conference on U.S. Capital Market Competitiveness in Washington March 13, 2007.

  • Warren Buffett phoned Treasury Secretary Hank Paulson at the height of the 2008 financial crisis with a suggestion that likely saved the US economy from an even deeper recession.
  • The famed investor and Berkshire Hathaway CEO proposed the government plow capital directly into banks instead of only buying their distressed assets.
  • Paulson quickly gathered the bosses of the nation’s biggest banks and convinced them to accept billions of dollars in investment.
  • The Treasury demanded preferred stock paying chunky dividends, as well as stock warrants in return, emulating Buffett’s bailout of Goldman Sachs in September 2008.
  • Former President George W. Bush called it “probably the greatest financial bailout ever” and said it “probably saved a depression.”
  • Visit Business Insider’s homepage for more stories.

Warren Buffett made a late-night call on Saturday, 11 October 2008 that likely spared the US from an even more devastating financial crisis.

The billionaire investor and Berkshire Hathaway CEO dialed then-Treasury Secretary Hank Paulson, the pair said in “Panic: The Untold Story of the 2008 Financial Crisis,” a documentary released in 2018.

“Hank, this is Warren,” Buffett said. A tired and groggy Paulson’s first thought was, “My mom has a handyman named Warren, why is he calling me?”

Buffett was calling about the Troubled Asset Relief Program (TARP), which authorized the Treasury to spend $700 billion purchasing distressed assets from banks. Lawmakers passed it in a desperate effort to shore up the financial system after the collapse of Wachovia and Washington Mutual — two of the greatest bank failures in American history.

Read more: GOLDMAN SACHS: Buy these 15 stocks set to

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Small homes made of Maine materials could boost economy, aid climate, council says

The Maine Climate Council has suggested a strategy that draws on the potential for constructing fuel efficient, modestly priced homes with locally sourced wood to help address the state’s affordable housing shortage while boosting the economy.



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Sustainably harvested wood – particularly when transport is minimal – is more sensible when compared with steel and concrete, which have a denser carbon footprint, Stephen Shaler, associate director of the Advanced Structures and Composites Center at the University of Maine, told the Maine Monitor.

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Using locally sourced wood to build homes could expand job opportunities in construction, design and forest products, revitalize former mill towns, help trade school programs and strengthen university research and development, the climate council reported.

While Maine is known for producing traditional hardwood from spruce and pine, engineered wood like laminated strand lumber is a newer industry. Wood fiber insulation manufacturing is on track to begin by 2022. A nanocellulose alternative to sheetrock also is in the early stages of development.

In collaboration with Downeast Maine Community Partners, students recently constructed a “tiny” 560-square-foot house for a Millbridge resident. The project helped explore the feasibility of producing similar structures on a broader scale, the Maine Monitor reported.

Plans are now underway to build affordable zero-energy modular (ZEM) homes, made from local wood products, at the former Great Northern mill site in Millinocket – now the One Katahdin multiuse industrial park.

Consultants with the L3C firm Material Research have signed a memorandum of understanding with Our Katahdin – a nonprofit economic development group – for a ZEM home factory that annually could build up to 500 homes that range from 600 to 1,000 square feet.

Caroline Pryor, co-founder of Material Research, told the Maine Monitor the typical price point for

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Bathroom Design and Renovation Tips – Our Top Ten Tips for Economy Bathroom Installation Works

Bathroom Design and Installation tips

Hi I am a bathroom "expert" and have run a company for 20 years specializing in the design, supply and installation of bathrooms in Edinburgh and the Lothians area.

Throughout this period the company has been a member of the Federation of Master Builders organization.

We are often asked to provide decent quality, hard wearing and attractively finished bathrooms for "buy to let" clients, young families and first time home buyers on a limited budget. If you follow our top ten tips below, there is no reason why you cannot achieve similar results for budgets of less than 3000 pounds.

Our Top Ten Tips for an Economy Bathroom Design and Installation project

1) Don't be overly ambitious with your bathroom design: – The new bath / shower / wc / basin should be positioned almost exactly where the old units were positioned: – remember that professional labor costs account for at least 70% of an economy bathroom re-fit and running new drainage and water supply pipe-work is time consuming and involves extra material costs

2) Before you spend any money on tiles and fittings, hire an all-trades professional fitting team: – There are no savings to be made in flooding out your downstairs neighbor through botched DIY or through cash in hand and "fly by night" cowboys : – If your carefully selected and vetted professional outfit does have an unlikely but potentially expensive accident, then the company insurance (check this out before hiring them) will cover the costs involved: – Pre selection will also allow you to involve the experts in the design and vital material / fittings selection process

3) Negotiate a fixed price with your contractor: – On a labor only basis, and at this time (outwith the London area) it is …

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