Buffett and Morgan - part 2

In a couple of earlier postings, I raised the question of whether Warren Buffett could play to the old role of J.P. Morgan in calming financial markets. Well, the answer is a qualified yes. Yesterday, the markets did not turn around on the news of Buffett's $5 billion investment in Goldman Sachs, but they did stabilize somewhat on that news. Obviously, the current Wall Street rally (up almost 250 point as of this writing) is due to the announcement of a pending deal on the financial package. But the Buffett action may have boosted confidence enough to set the stage for the current rally. In the current financial situation, that may be good enough.