Tuesday, December 28, 2004

WARREN BUFFETT WARNS OF FINANCIAL CRISIS

"Markets Always Defeat Government Intervention, said W. Buffett to Forbes: "The rest of the world owns $10 trillion of us, or $3 trillion net." That is, U.S. claims on foreign assets run to only $7 trillion. "If lots of people try to leave the market, we'll have chaos because they won't get through the door." .... Nor does Buffett support the notion that intervention in the currency markets by one or another central bank can overcome the momentum of a currency that's losing value. "Sooner or later markets win over the intervenors. The intervenors always run out of gas," says Buffett.... And on Newsmax.com, a similar article can be found: Warren Buffett Warns of Financial 'Chaos'... Buffett tells Forbes he may end up owning currencies “for years and years” - and worries U.S. politicians will fix the deficit problem using inflation...."

EVEN W. BUFFETT SEES FINAL END GAME