By Jessica Shambora
September 25, 2008

“I think we’ve got fabulous capital markets in this country, and they get screwed up often enough to make them even more fabulous. I mean, you don’t want a capital market that functions perfectly if you’re in my business. ”

–Warren Buffett, CEO of Berkshire Hathaway

and billionaire investor, to Fortune‘s Nicholas Varchaver in his cover story, “What Warren Thinks…” On Tuesday Goldman Sachs

announced that it will receive a $5 billion dollar investment from Buffett’s company, a move that could help boost confidence in the market.

Last week U.S. Treasury Secretary Hank Paulson, the former CEO of Goldman Sachs, coordinated a bailout of American International Group

, after refusing to rescue Lehman Brothers (LEH) earlier in the week (Barclays

subsequently agreed to buy Lehman’s North America unit).  During the week prior, Paulson orchestrated a federal takeover of Freddie Mac

and Fannie Mae

and in March brokered a deal for JPMorgan Chase

to acquire Bear Stearns.

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