Sunday, May 06, 2007
The wise man has spoken again - is he right?
Financial Times: Buffett issues warning on risks to growth
"Warren Buffett has warned corporate America that the current era of unprecedented profit growth and benign economic conditions could be brought to an abrupt end by growing political and financial risks."
Posted by trough2010 @ 03:54 PM (162 views) Add Comment
1 Comment
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1. dobber said...
Quoted in the Daily Telegraph:
Mr Buffett predicted years of turbulence ahead for the financial markets but said that the subprime crisis would not cause a collapse of the entire economy as many have predicted. "It will be a very big problem for those involved but I think it is unlikely that factor alone triggers anything in the larger economy,"
Instead, he cited derivatives. Because of them, "there will be some very unpleasant things that happen" in the financial markets. "We may not know exactly where the danger begins and at what point it becomes a super danger," he said.
Such danger will be amplified by sudden sell-offs by the "electronic herd" of fund managers.
The Sage has confirmed what many have said on this site, Subprime residential and associated subprime activities (hedge funds) will cause turmoil across the worlds financial markets.