Sign #2 that the financial industry will rebound

Last week I blogged about Warren Buffett’s purchase of preferred stock in Goldman Sachs.  Today it was announced that Berkshire Hathaway (the investment firm that Buffett chairs) has reached an agreement to purchase $3 billion in preferred stock in GE.

Again I say, if Warren Buffett is jumping in now we have to be near the bottom of this mess.  Who knows how long it will take us to get out but I take comfort in the fact that Buffett doesn’t believe it will all collapse.