Answer the questions below, please write a paragrah about the Warren Buffet and Goldman Sachs in deal 2008.

In late September of 2008, while the country was struggling with a financial crisis, legendary investor Warren Buffett made an amazing deal with Goldman Sachs. Read about it here in the Wall Street Journal.

1. What exactly did Warren Buffett buy?

2. Why did Goldman, one of the best run banks on Wall Street, give Mr. Buffett such a great deal? To understand more about this, look at interest rates at the time and in particular, at the shape of the yield curve.

3. Compare Dec 2007 to February 2015. We currently are experiencing a normal, upward sloping, yield curve. Compare the current yield curve to the December 2007 yield curve. How is it different? What was happening in December of 2007 in the financial markets?

4. Compare Sep 02 2008 to Oct 02 2008 This shows the before and after effect of WB's deal with Goldman. What do you see in these yield curves? What changed? The deal was signed on Wednesday, the 24th of September. Can you tell from the yield curve changes when rumors of the deal were first leaked? (Hint: find the dramatic change in the yield curve in mid September.)

Reference:

The Wall Street Journal. Warren Buffett Makes an Offer Goldman Sachs Can't Refuse. By Andrew Bary. Updated Sept. 28, 2008 12:01 a.m. ET. Retrieved April 9, 2015