"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 (BERK) and billionaire investor, to Fortune's Nicholas Varchaver in his cover story, "What Warren Thinks..." On Tuesday Goldman Sachs (GS) 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 (AIG), after refusing to rescue Lehman Brothers (LEH) earlier in the week (Barclays (BCS) subsequently agreed to buy Lehman's North America unit).  During the week prior, Paulson orchestrated a federal takeover of Freddie Mac (FRE) and Fannie Mae (FNM) and in March brokered a deal for JPMorgan Chase (JPM) to acquire Bear Stearns.