The price of fuel now makes up 35 percent of airline costs compared with 13 percent a decade ago. Capital and Crisis editor Chris Mayer says if oil prices stay where they are and nothing else changes, the airline industry will lose about $6 billion this year, compared with a profit of $5.6 billion last year.

Things have not been great lately for Warren Buffett and Berkshire Hathaway (BRKA) shareholders. BRK stock has dropped more than 20% since December and large Buffett holdings in the financial services area such as American Express, Wells Fargo, Moody's, and U.S. Bancorp are hurting his equity portfolio.

Rohm and Haas Company (NYSE: ROH) entered into an agreement with The Dow Chemical Company (NYSE: DOW), under which Dow will acquire all of the outstanding shares of Rohm and Haas common stock for $78.00 per share in cash.

Barely one day in, the Sun Valley conference has already helped to produce a multibillion-dollar merger deal — but not the kind you might expect. Dow Chemical has agreed to buy Rohm & Haas for $18.8 billion, with a big slug of financing from Warren Buffett, the legendary value investor who recently arrived in Sun Valley.