Buffett predicts more market turbulence

[Ishmael]

Re: Buffett predicts more market turbulence

Christoph:

Thanks for your response. I was an audit manager with Arthur Andersen and worked through the last big banking panic in the US in Oklahoma and Texas. I watched as companies received unbelievable loans to businesses with no assets (oil and gas reserves). That ended badly with two of the top ten banks in the US failing -- Continental and Seafirst. Ultimately practically every large bank in Texas and Oklahoma failed. Real estate was the biggest reason for failure then.

What I am seeing now makes then look like a bunch of punters. Supposedly 70% of bank assets relate to real estate now. Add to that loans to hedge funds. Stir in some loans to LBO and what do you have -- massive bank failures.

They should be scarred. A bunch of new MBA's who have never been through a down turn are leading us to bad times.

[FRED]

Re: Buffett predicts more market turbulence

So, Eric, you are saying you know the market trend better than Warren Buffett?

Yes. He didn't get it.

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March 10 (Bloomberg) -- U.S. stocks fell, extending the worst weekly slump in the Standard & Poor’s 500 Index since November, after Warren Buffett said the economy “has fallen off a cliff” and the World Bank predicted a global contraction. General Electric Co.’s Jeffrey Immelt says he’s prepared to steer through a financial “armageddon” that has wiped out 78 percent of GE’s market value in a year and forced its first dividend cut since the Great Depression.

Warren Buffett Says Economy Has ‘Fallen Off a Cliff’

Billionaire Warren Buffett, whose Berkshire Hathaway Inc. posted its worst results ever in 2008, said the economy “has fallen off a cliff” and that efforts to stimulate recovery may lead to inflation higher than the 1970s. more...

Now re-read the original post: Buffett predicts more market turbulence

Buffett ought to subscribe to iTulip and save his investors' money.

[goadam1]

Re: Buffett predicts more market turbulence

I keep trying to tell people to "means test" you guys and then they will be believers.

[FRED]

Re: Buffett predicts more market turbulence

I keep trying to tell people to "means test" you guys and then they will be believers.

Few people means test.

They think: If it wasnt' on CNBC it can't be true!

[goadam1]

Re: Buffett predicts more market turbulence

I know it was kind of a lame joke.

[GRG55]

Re: Buffett predicts more market turbulence

Few people means test.

They think: If it wasnt' on CNBC it can't be true!

Given CNBC is owned by General Electric, you'd have thought Maria and Co. would have been prompted by the decline in their savings plans and "discovered religion" by now...:rolleyes: