CNBC just said HD is going to pay Buffet 15% interest for him to buy their bad debts? Stock rose significantly today on the announcement.

I don't know about this, cause Buffet's been taking a bath here lately on some of his investments.

 

Jimmy or Warren?

 

15% seems pretty high...

http://www.bizjournals.com/milwaukee...2/daily27.html

Davis Selected Advisers LP, a long-time investor in Harley-Davidson Inc. and the largest holder of Harley stock, and billionaire Warren Buffett's firm Berkshire Hathaway Inc. each committed to purchase equal portions of the aggregate principal amount of the notes, Harley-Davidson said.

 

Yeah, the 15% is what's got my head spinning. Kinda waiting for the other shoe to drop on this story. Don't know if HD's gonna drop it or Buffet.

More to it than someone's telling though.

 

HD is getting investment advice from Bernie Madoff

 

sleeplessinvegas, ya made me smile..First time in a long time. Thanks.

 

Harley is serving a free bufett?

 

Not sure I understand why HD Financial would have so much bad paper that they would consider 15%. I have read that they have some liquidity problems, but a 15% bailout loan wouldn't be the answer. It's not like the bikes have dropped in value like houses.

 

Buffet's in it for the long haul. All recessions end, this one will too. The people who are buying now will suffer only in the short-term, he knows that. Why do you think he's a billionaire, because he won the lotto 10,000 times?

 

It's not the value, it's the fact that consumers aren't buying. Throw in the fact that HD Financial borrows money to have capital to hand out loans, as their number of bad loans go up the harder it is for them to get credit. If they can't get credit then they can't give credit, and in the end they sell less bikes.