He cant exist without them
I love this guy.
@crypghost5 What Buffett doesn’t understand is that there is still a housing bubble because the bubble was not allowed to fully pop. He expects housing to recover and it won’t. If the gov. let housing stand on it’s own, housing would implode…the gov. is still backing over 90% of newly issued mortgages. Furthermore, the cheap credit that is also helping to keep housing afloat is about to end, not by choice but by the force of the market with the death of the dollar in the coming months.
This blissful, worry-free attitude, propelled them to act similar to buyers of stock prior to the great-depression, with a “CONSUMING” stand, instead of an “INVESTMENT” mindset.
Now from your post, you actually have the right idea, except your not seeing Buffet’s point is actually parallel with your own.
After the bubble popped in 08 and the party was over, buyers and investors, that turned to consumers and speculators realized they were a little too liberal with their debt.
“now way way over built and buying a house is now hugely depreciating asset”
That is exactly Buffet’s point of view. The housing market acted in parallel to an-overvalued Enron Stock. A huge, over inflated bull market that lead to “buyers” becoming innocent sheep not knowing they were headed to the slaughter.
The overall bliss lead consumers to see real estate as “CONSUMPTION”, just as they were buying a day’s groceries, instead of an “INVESTMENT”.
@crypghost5 I don’t blame you for your ignorance in not realizing that housing is consumption. In the run up, people thought that houses were free because the appreciation covered taxes and repairs plus some. Because of that frenzy, houses are now way way over built and buying a house is now hugely depreciating asset, like a boat..but much worse than a boat because a boat is mobile and a house is not.
@crypghost5 Yes, owning real estate COSTS money. Now, everyone has to live somewhere, so you’re basic house is necessary..just like eating or wearing basic clothes. But anything beyond that is strictly CONSUMPTION. Investing in a more luxurious house is not putting resources to work productively and is CONSUMPTION. Investing those resources instead in a factory and putting the resources to use in a productive manner to make things is PRODUCTION. See the difference?
Real estate correlates to consumption?
Educate yourself boy.
“certainly, in a few years we’re be back at 6% unemployment…” really Buffett, this supposedly genius investor have no idea on how economics work… our debt is too high for our economy to grow!!
7:40 when she asks “what if we dont get a deal warren? … what happens?” She has the innocent scared look of a waif with her low setting seductive eyelids. RAWR
your credit is good cause you can print your own money!???? this guy is supposed to be smarter than this.
you will see hyperinflation in the states, ppl are going to be living in shacks
wow we have the power to print our own money? buffet sounds like he works for goldman sucks, not for himself anymore
buffet times are a changing my friend, its better to hire overseas nowadays, US has peaked.
Buffet’s a moron..I guess he doesn’t understand what 0% interest rates and government backing of the real estate market means. It will be at least 10 years before housing comes back. Someone please tell this guy that housing is not an investment, it’s consumption, and when American’s start seeing it as such, how will crash 75%.
most of the jobs were lost by george bush policies eventhough it happened on obama’s watch
Yeah… tell this Obama and his voters
1st, love this guy
Mail (will not be published) (required)
© 2011 Warren Buffett Biography