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Wait you structured this deal you're using some Berkshire stock for this and then sixteen billion I believe in cash to pull it off.
The Berkshire board approved to fit what fifty to one split for the class B shares why not all cash Warren are you trying to preserve your cash at this point.
Well I like to have a very comfortable level of cash and has also a diplomat normal model stock that we can -- and still have.
People be able to -- the tax free deal -- BNSF stock currently so if we're going to be used.
It I don't like using stock -- By that I -- I don't like Richard -- is this your first time you if you stop now confident now immediately used -- -- -- fact that if you go back to the gen -- deal that was an all stock deal but but.
Generally speaking I've got.
I'm not enthused about using stock but give -- 40%.
And considering the fact we already owned -- which -- also bought for cash it will mostly using actions -- -- He just mentioned the tax free aspect can you clarify a little bit on that.
Well it's that 40% of the old restock and everybody will be able to -- but whether they want stock -- cash and the less than 40%.
Up first stock.
And I got an all stock delegation and if more than 40% based still people offer -- will get mostly of stock application.
And it except they get stock it'll be tax it'll be a tax free exchange.
To acquire a company of this size one transportation demand is down -- -- you said is really -- on the US economy in fact in the release you call that an all out wager in the economic future of the United States.
When you see the total recovery taking hold.
Tied I don't well I -- about it doesn't really make any difference in terms of the acquisition -- -- at all somebody for a hundred years.
Out the next the next week or month per year -- as a negative numbers are between all the fodder -- -- -- -- -- -- recession -- -- that there.
-- -- -- made -- -- -- -- -- first you're the fifth fear of eighteen year.
It's funny that you -- you did this with the rails because just two weeks ago we had Bob -- of the -- funds on saying that the rails are overstating their earnings and under depreciating.
Do you see it that we did you look into dot.
Well it's true I didn't have those but it's true that any company that has long live -- -- Is replacing assets that they bought many years ago with things could cost more money now that stroke or utility business -- -- any business.
It's drove it'll be a double -- Thirty years ago and I had a thirty year life when you go to replace that -- plan is gonna cost you more money so that's that's a fact of life in an inflationary economy.
One year ago September we were also nervous and that's when President Bush and Hank Paulson pushed through TARP since then we've had the stimulus.
You have said that when you treat a patient was such a huge amount of medicine.
The likes of which we've never done before somewhere down the line we're going to see the ramifications what do you think those ramifications will be -- aren't you -- to make such a huge purchase.
Knowing that that may come to pass.
I'd be more -- open cash and I -- I think that if you look at the the side effects of the incredible dosage that -- had to -- and I think that dosage has been a 100% appropriate I'm not knocking that but what do you get when you applied the kind of medicine we've applied.
You may have some sort of -- process and after a factual but.
The one thing about those on president after effects is they're going to be very bad for tax cut so I would much rather -- -- but have.
That have cash in the in that period that could well become and -- on the road but.
Back to the head -- so you know you told me back in and day and then repeat June the commercial real estate would quote hit the skids big time and now we see that it is.
What makes you think the businesses would ship more goods fire railroad when that kind of head wind is blowing in dark -- sources such a long term bet at this point that you're not looking the next two years out.
Well I went I don't know what will -- next year but.
I would about a lot of money went back we have got a lot of public -- Ten years now there will be more people in the United States that they will be consuming more things that make him -- now and that will be the more drew twenty years from now on thirty years now so there's going to be -- moving around.
For more and more people were going to be consuming more and more of them and certainly rail should not only get a chair but probably should get a little more than a cheerful.
It gets it it's a bad on the American economy.
Essentially continuing to prosper over time guesses -- prospered it was a 77 -- Lot of employees are taking on here universal health care is at the forefront of a lot of people's minds.
Do you think as you look at what what the government is attempting to do and congress is that now is the time to tackle such an expensive problem.
Well I I I think I think it's it's long past the time we we tackle health care but.
What what what what are the real problems as the -- in the system and that that they're very tough to get to.
But you know we do spend 16% or so GDP on on health -- the United States certainly we have to figure out subway.
This slowdown that particular engine.
Do you think the wealthy should be taxed to pay for health care for all night and -- -- overall should be taxed more relative to the tournament local.
Here's a worry though the house bill calls for -- 5% surtax on the wealthy.
But it's not indexed for inflation could that end up mimicking the Alternative Minimum Tax.
Which originally was supposed to tax only the rich and -- as you know police officers and teachers have to paint.
-- I haven't read I haven't read the 19100 some pages in their -- I do and all that that they have this that the 5% tax.
I I think it's on income of over 500000 or something because you're right that the visit the web -- does not -- but as a practical matter.
I think that -- That the wealthy have had their share of overall taxes coming payroll taxes demanding significantly in the last twenty years.
So I think that if you're if you're looking for more revenue from the the citizenry I think that the -- -- -- -- -- And that's you.
-- -- -- -- -- -- -- -- Absolutely I always take your temperature each time we speak when it comes to President Obama back in June in the last time we spoke you were very happy with always done does that sentiment continued.
I'm I'm I'm I am very very glad that I worked for both groups -- President Obama and I think he's the right -- and have the job.
You're not concerned about all the spending that's going on at the moment.
I think it's been I think it's necessary I think a lot of the things we've -- in the last year are or fifteen much.
Will have after effects but I think -- -- -- Denver but they've been very important week.
We came very close are going.
Going into the best one you're going and and that they had other bad produce some very unusual thing and then and then some -- we'll have later cost but.
Based -- -- the right things to -- You broke back in August and the times that dollars destiny lies with congress and the deficit for 2009 at -- -- the numbers keep changing but one point 4000000000010%.
Of GDP -- since 1945.
Are you buying foreign currencies now or or at least playing that carry trades -- the dollar so weak and their other currencies out there with better yield and I know you don't like to talk about what you're doing but you know -- you see the dollar.
But here you're seeing it get rid of a lot of -- -- today in exchange for a lot of assets so I would rather I would rather -- -- little assets -- -- dollars.
Okay well as we finish up there I have to ask is this this is breathing Burlington northern purchase really just a chance to beef up your Lionel train collect.
I have in the at a -- I.
It's I don't know I've got a got a pretty good -- on the third floor but it's got a good bit in the -- look.
-- media Matt -- of Burlington northern just said he's getting thousands and thousands of rail cars to add to that collection -- and it outright but I thank you so much mr.
-- okay thank -- --
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