"The worst of the crisis in Wall Street is over" Warren Buffett

http://timesofindia.indiatimes.com/Intl_Business/Global_credit_crisis_has_eased_says_Warren_Buffett/articleshow/3010212.cms

This is why you need a federal reserve in times of crisis. But I except the Fed Bashing will continue on here.

 

lol the dollar is crashing and countries are dumping their dollar reserves by the boatload.

Your head is in the clouds.

 

The issues if all amalgamated together together are complex
But the fall out is not complex
The heirarchy come out of it relatively unscathed
The guy in the street might lose his house and go bust

That is how western 'democracy' (selected by the guys with the money) works to protect the alpha elite

It sucks

 

very rightly said.....

 

In terms of listening to and believing in a credible source, I'd go with Buffett any day of the week. (that's Warren Buffet--not Jimmy Buffett)

 

Why, so they can protect the banking cartel and bailout loser banks with public money?

The first intelligent thing you have written to this thread then. Maybe one day you will understand that the FED doesn't serve you or I. It serves the banking industry and politicians.

 

You understand that he said: "The worst of the crisis in Wall Street is over" and not "The worst of the crisis for USA is over".May be it is hard to understand but the two are not the same.

The down turn in USA will continue and I am still betting against the dollar. Thanks to this government, I have already got a free house in Spain, so now I am looking for what more I can get out of it. I have my eye on a nice 45ft motor boat.

 

I lived professionally through a bank crash period and industry depression in the early 1990's. At a certain period...based on total lack of capital for buildings..commercial real estate essentially had zero value. There was no demand and no capital available for its purchase.

On an overall basis lending was severely restricted to the broad economy. It was an ugly recessionary period.

I suppose the fear was that the Bear Stearns collapse would have destroyed the banking system.

who knows. most of the world is dramatically removed from the interlocking relationshiips these institutions have.

I have no love of the efforts of the fed that bails out the banking giants while others suffer.

I suspect and hope that when they act in this way it is for the ultimate good in maintaining a working banking system. But nobody knows....unless the banking system collapses. Then we will be able to measure the impact.

In the meantime, as buffett commented if a wall street disaster is averted, yeah, it doesn't mean the rest of the negative impacts are averted. we will see over time.

 

I agree wholeheartedly that thwere is still a possibility for much more pain in the financial markets and in the real economy. Even now, Berkshire Hathaway has been increasing their investments, but much of it has come in the forum of high yielding debt from fairly stable companies that carry this country's best brand names.

 

Hey soniqhost I bet you feel real smart right now.

 

It turns out that letting lehman fail made things a lot worse. Lehman failing is what took down AIG because of all the credit default swaps AIG had sold to insure lehman's debt. After lehman going down the crisis really seemed to spread across the globe quick. Not to mention that the world's largest insurance compnay had to be nationalized.
They were right to save Bear and really wrong to not save Lehman.

 

Could be. I certainly don't have a fix on the credit default swaps. The whole things were developed by Math PHD's. They are very complex. The people that operate the investment houses might not have fully understood their consequences.

I recall that some highly developed similar types of tools led to financial breakdowns with hedgefunds before. I think it was at the end of the 90's in conjunction with a meltdown of Asian and the Russian economy. After the fact, the investment world decided that the models that were built seemed to work well in "normal" business environments but didn't hold up in extreme periods. We clearly have had extreme credit problems now.

Maybe the models credit default models again broke down.

Meanwhile, Buffet argued against the credit default swaps in the insurance world when they started coming out.

His comments from a year ago certainly look foolish right now. I'd say that nobody has a fix on the negative impacts of the economy at this time.

There has been an enormous loss of wealth. Assets like the stock market and the enormous aggregate value of residential homes (which aggregated into huge volumes of securitizid bonds) have lost incredible value. Insurance against these things has obviously collapsed. Substandard protection against leverage (such as holding 3% of the value of securities -as with some financial institutions) has been clearly insufficient.

I am for taking steps to stem the problems. I don't know the totals necessary. It might be that the so-called experts don't have a fix on it.

When things go to cr@p it is hard to figure out what to do.

 

I'll argue that a lot of the wealth in the stock market and inflated prices never existed in the 1st place.

Kind of like the Tech bubble and Bernard L. Madoff Investment Securities LLC

Investors wiped out by the Bernard Madoff scandal got more bad news on Friday: Investigators have confirmed suspicions that the monthly statements showing the disgraced financier was making stock trades for them were pure fiction.

http://www.google.com/hostednews/ap/article/ALeqM5hnkPe640MG8WMCAvAwv5GqtqxsOAD96FIASG3

 

I wonder if that guy's ever actually sold anyone the Brooklyn bridge. What an f'ing sociopath.

 

Yeah Bogart: stock prices, real estate, art for investment, commodities....its all paper until you sell it for cash.

 

well not exactly paper...you own something, ex if you buy gold will not be paper until you sell it

the real answer is in the support and demand of each market

if the demand goes down as now then the price will also go down and vice versa

 

Madoff is the tip of the iceberg

Venezuela seizes Stanford bank

Stanford was charged on Tuesday with "massive fraud" related to Stanford International Bank and his Houston-based broker-dealer and investment units.

US authorities accused him of fraudulently selling $US 8 billion ($12.5 billion) in certificates of deposit with impossibly high interest rates in a scheme that stretched around the world.

http://www.abc.net.au/news/stories/2009/02/20/2496522.htm?section=world

 

S&P may bottom at 625.

The Dow may roll back to 1994/1995 levels whichis between 4000 to 5000.

Senator Dodd is saying that the US is going to nationalize the banks.

 

You might want to check out the Berkshire Hathaway Forum that I've been managing. There's a link about how some investment scam targeted deaf investors....yeah, pretty bad.