Negative Rates 'Distort' Everything: Warren Buffett | CNBC
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- Опубліковано 16 жов 2024
- Warren Buffett, Berkshire Hathaway CEO, discusses what he is telling people about market volatility and shares his thoughts on the impact of negative interest rates.
For more of Warren Buffett's wit and wisdom visit Buffett.CNBC.com
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Negative Rates 'Distort' Everything: Warren Buffett | CNBC
The gravity comparison when talking about interest rates is a great way to explain how it works! Kuddos to Warren!
I favor Einstein's definition of gravity; it's relative to where you stand.
As an economics newb when I heard about negative interest rates I thought 'that's basically like inverting gravity and trying to engineer a rocket using +9.8ms in all your equations'
You need a healthy dose of friction and gravity to build real muscles in the gym, the same goes for the economy.
and nutrition, which is lacking these days in the financial sector ... they're going the steroid route and we know how that ends
@@christopherashford4194 good comparison. starving and steroids get you buffed and cut at the same time looks good until the bill comes
This is the first time I realise Warren Buffett is actually losing patience while talking about negative interest rates
The "farm" he owns near by is Mexico.
Here it is 2019 and rates keep going lower. Rates are never going up,for the simple fact that all assets would collapse,and the government knows this.The end result is going to be no returns on anything
jb The End result is going to be a recession.
and here we are in March 2020 practical 0% and heading negative ! paying the bank to keep your money !
@@karlbenz5636 take it out.
Negative interest rates do not make any sense and should be illegal worldwide IMO. A minimum should even be set.
Why? And who will make them illegal if it's the governments who do that?
Maybe in a communist economy could a minimum be set, I hope you're joking lol
interest rates don't measure growth ,it's gdp transactions that drive the economy .it all depends on what the borrowed money is used for .
No you can increase gdp by immigration
@@chris0000924 HOW
@@ahpahcheirevolucian9623
That's what's calculated. It's what the European countries do to keep numbers up
@@chris0000924 That’s just crooking the books.. the only real measure in increased/more efficient production.
So much value in this interview. Thank you
and then infinite QE.
Good God, the interviewer is a blissful distraction.
looks like a hooker looking for a old rich john
Heavily share!! Heavilly Agree!!!
Buffett is the GOAT!!
so
It is not negative interest rates.
Negative interest rates means one can borrow and be paid interest for borrowing.
What this is is a service charge the bank charges the wealthy to watch over their worthless wealth.
@john Stetson Distorted interest-rate (too low with no regard to inflation rate) causes inflations. The negative-interest rate for such extended period is problematic.
As Warren said, there's a good reason why European Central Bank decided to do "negative interest rates" (the sever sluggish economy of many European countries and sovereign debt crisis in 2011). But as he said, it's going way more then expected.
A few precisions regarding the ECB's policies:
1. Negative interest rates are from the ECB to BANKS , not to your average dude/tte.
2. Negative interest rates are a temporary gimmick (like ELAs), not a feature of the ECB system.
3. Negative interest rates are ridiculously low (0.1%), not a very significant figure in the EU economy.
Buffett asking for higher interest rates..
Coronavirus: hold my genome
stock market interest rate formulas and many other of their math functions do not work with a negative interest number. that's a very strong indicator that we are officially in the weeds....a place we've never been nor have anticipated being in. I'm a cashing out Monday.
Doesn't "negative interest rates" mean that the banks etc. have evolved their activity into a service the public is willing to pay for, instead of being paid for?
The negative rates are for banks's reserves at the respective central banks, not the public.
@@Stewiehleba But Warren Buffett is THE PUBLIC. His company Bershire Hathaway is LOSING MONEY by keeping it in European banks as he states in the video.
@@chazsmith20 can't you read? Negative rates are for the money keeps in its account at the central bank, not the money the bank pays as interest to its depositors.
"evolved" lol. So you go to work on Monday and your boss says "You worked 40 hours last week, that'll be $300. What?? I have to PAY to work here? Response : We're evolving".
@@Stewiehleba your wrong
Look at Denmark and Sweden and other places around that area that are now offering customers -0.5% fixed mortgages for 10 years. Educate yourself before berating someone next time
Why is it a problem if businesses choose not to collect receivables? They're putting their excess cash to good use by extending credit.
He said it, there's a good reason why European Central Bank decided to do "negative interest rates" (the sever sluggish economy of many European countries and sovereign debt crisis in 2011). But as he said, it's going way more then expected.
@@hus390he seems to suggest that negative rates eventually become a problematic response to a sluggish economy.
She looks delicious, but how about Warren Buffet--this guy looks great for his age and seems to be enjoying life. Hope I'm that peppy in my dotage.
sHe LoOkS dELiCiOus
#lovewarrenbuffett
Negative interest rate is essentially a wealth tax.
Opposite.
Rich people don't keep money in cash. Negative interest rates is a tax on cash, not wealth.
@@jayceh wealth usually earns a positive risk-free return. If the risk-free rate turns negative, wealth loses that risk-free return and is only compensated for risk. Risk is a cost. Asset prices do rise temporarily but the rate of return drops. Wealth can only avoid the wealth tax by selling assets and consuming more goods/services, or by trading US assets for foreign assets.
A tax to the lender and a subsidy to the borrower
Aka a fee banks pay after benefiting from bail-outs in 2008. :)
Interest rates need to go up slightly. This is getting warped.
markets in 2019? He isn’t sitting on cash and is probably the one buying every stock of AAPL for the last year
Not a huge fan of Buffet but he explains it in a easy way to understand
Why aren't you fan of Buffet? He seems like a very smart, wise and sincere man?
so he has a farm and where does the crops go. Does he sell them to supermarkets??
He bought it back in 1985 or so... his son runs it. The farm writes Buffett a check for their FCF every month.
That may be all well and good . But, the average guy who has his testicles tied up in the business , it is an entirely different game.
What happens when gravity turns into propulsion....that's what's happening with negative interest rates. Where are we headed?
Negative interest rate is very bad bad for the economy. Peoples hold more cash when the interest rate is low, and hold less cash when the interest is high. Japanese corporates hold cash more than anything else because of the interest rate.
Make the girl get rid of her notepad!!
Negative rates means the last ditch effort to prolong the innevitable. I can see america having reverse immigration when this happen with massive brain drain.
Every industrialized Nation is in debt big time...in fact in worst shape with real negative interest rates compared to the US... Where do you leave to?
Reversed immigration...?
Emigration?
If America is not attractive to immigrants, it is done..it is riding on cheap labor and immigrants...
Quattro 4 You will be in perfect Position to watch this scenario in Euro-Land. We already have 0% Interest Rate and -0,3% for Banks. Soon we will see more negative Interest Rates. That’s „whatever it takes“ look like.
I bet US would steal money from Europe whatever bad or worse will happen to their economy. That's the only way out.
A Buffe 4 Mr Buffett
Yup...it's a bubble...the whole thing is a bubble.
Only entities of a certain size can tolerate negative interest rates. That is something which will not filter down the food chain.
how so? explain more!
@@alexleszczynski2611 Well, there was a time when it did not seem possible that a large investor would essentially pay to hold a government bond (IOU) - but now it is! At that rarefied level of commerce, they seem to see this an an acceptable form of having a safe place to put their money for a charge rather than "a little interest". What I was thinking in the previous post was that this concept will not play well with the small, very small and individual investor, or bank account holder, already subject to dubious bank charges. I am also told that there is a "bond bubble" at present, to go with the real estate and stock bubbles. There was a time when one's parents would advise their offspring to invest in bonds, but they have definitely lost their lustre.
@@alexleszczynski2611 I can't seem to get your second comment to display properly. Apologies. I'll try another browser.
@@peterdixon7734 did it work>?
@@alexleszczynski2611 No, I can't even get onto that video thread now. I am replying in the Notifications!! I had better do a system scan. I was in IT for 8 years. If I can't sort this out, no one can. Another UA-cam technical triumph.
I didn't know Iliza Shlesinger did fiance interviews lol
"And then what?"
Warren should have put his 1 billion dollars into Bitcoin instead when this was filmed lol
I think he'd have a hard time selling $1 billion in bitcoin without crashing the price.
2019 says hi.
1:18 nice legs
Yeah, not too bad for a 90 year old man.
Bring back goldstandard
₿itcoin time.
you mispelled gold time
Credit leaves 🍁 , house of cards falls
BITCOIN
Communist China’s fault.
and then what.
❤️❤️❤️❤️❤️❤️ here is all of my money Mr. Buffet! Please help me grow it.
3:09 shes trying not breath in because he farted
SFB maybe he has bad breath. I bet he does. I’m not convinced is microbiome is healthy.
2:15 why wouldnt warren just do a carry over trade to USD
And then what?
You can trust me Warren.... B-)
WARREN YOU KNOW THE EURO WAS SET UP WRONG. I BELIEVE THE SOVEREIGN BONDS WERE NEVER DONE RIGHT ; SO WHAT WAS THAT CURRENCY REILLY ABOUT. PLEASE EXPLAIN SO IT,S NOT BACKED BY SOMETHING
Here we are, 0% interest rates before a recession has even been declared. 1.5T into repo markets, $700B in quantitative easing. Who knows if we can get out of this, feels like we're stuck and bound to go negative.
Marlon Quintana-Nieto Based on what valuation? Without risk free rates all valuation metrics go out the window. Real estate and stocks become inflated with money which can’t be put elsewhere. As Warren said, theoretically you can pay an infinite price for business if rates are negative. Only way is to buy growth or index.
Heard he's going to get a bank fill with cash and a junkyard dog instead of neg. Rates on ts. Warren buy utilities..
Buffett sells his stocks and raises his biggest cash horde ever, then tells everyone else to hold their stocks as he continues to sell off. What a great salesman...
and then what?...bitcoin/gold
BITCOIN
@Blake Aluminum
Billionaires distort everything.
We need a new Fed Chairman. Trump and Powell are doing their self interest.
2:29 "he's yummy, don't care what he's talking about"
How does the guy concentrate with all that thigh on display?
1
This guy dumped a lot of stocks and bought gold lately
rip
inappropriate short dress of yhat interviewer
The world has changed Warren
Rumour has it Buffet is shorting the shhhhhhhhhh:&&:@/@/ out of bitcoin. Get in before it’s to late! Buy your puts now!!!!!
Hmmmm - one the biggest bailout recipients giving financial advise
Agreed tell that to the suckers that believe this old crook lol.
So true. A total hypocrite: all talk, no walk.
You sure about it ? Any source ?
He did have considerable investments in US Banking sector, but he did not receive direct bailout as far as I know.
@@anshuman2089 When others like "third world" nations get bailouts Americans freak-out calling it communist - but when they go broke they run around and cry for bailouts
ua-cam.com/video/qCMn7g4DJHY/v-deo.html
So negative rates distort everything? . . 🤔 . . so does extreme wealth hoarding! 🙄 🤑 😖🥺
You're right! We should forcefully confiscate wealth!
@@demetriusmiddleton1246 that won't help. Just like a game of Monopoly though, there comes a time when 1 player has taken a big lead and others have been eliminated . . it's not fun for anyone but the leader . . for the fun to continue, the game needs to be reset so all players are included.
@@Jan_YTview I really don't think you understand the dangers of what you're suggesting. Yeah, that's cute when your 7 years old and playing a board game, but as a responsible adult it's not so ... responsible, mature or even beneficial in the way that you think.
What you are describing is the Crux of the argument for Marxism. When the proletariat start a revolution to overthrow the bourgeoisie.
And Marxism literally always evolves into communism. So be careful what you ask for! Because those systems literally always end in atrocities such as what happened in the Maoist China regime, or the atrocities committed as Millions were forced into Russian gulags.
Now I do believe that capitalism does produce hierarchies and hierarchies always get out of balance. They always get to the point to where those at the bottom are left with zero. But there are ways to solve that without burning the entire thing to the ground. I can't say I'm supporting Universal basic income yet, but that is one solution. There are other ways to empower those at the bottom without destroying the entire system which leaves literally everyone under a totalitarian government oh, and I don't think you would enjoy that.
Ask those in North Korea? Better yet, don't because they can't tell, don't because they aren't even allowed to tell you the truth! They are only allowed to tell you that it's beautiful (in public) because their government censor speech! If you think the Big Brother system in America is bad, investigate North Korea where they aren't even allowed to visit any websites that don't make the government look good I like here where you can say something like burn it all down!
You probably think that we could do it differently, we can do it right, we can do Marxism and communism right! Wrong. That system doesn't work. And I would prefer not to have to be thrown into a prison camp or to have the atrocities committed under the maoist China regime, or do I have to go through what the North Koreans are going through, just to find out that what you're proposing is dangerous. We already have history to know that it is, unspeakably so
@@Jan_YTview by the way, I think you did not understand that I was making a joke when I said we should forcefully confiscate wealth! I was absolutely joking. And I don't think that would work any more than burning the entire system down would.
@@demetriusmiddleton1246 you talk to much and need to think more. The emperor has no clothes.
Is she really into this economic stuff ?? No woman digs terms of economy and finance .....but She likes ? What a nerd ....
1:18 who cares about Buffett. Look at those legs!
Time for plan B (Bitcoin)
bitcoin is owned.. well 40% of it is owned by 1000 accounts bro.. lol
@@alexleszczynski2611 ok stay in printpaper fiat than, good luck
@@hansturpyn5455 gold and real estate.. businesses
@@hansturpyn5455 bit coin is fiat. gold historically has always done good over thousands of years!
@@alexleszczynski2611 physical gold yes, but nowadays there is like 5 times the amount in papergold than there actually is real gold. Bitcoin at least cant be printed at will and is bound to its algoritm and math
And then what? God's justice will fall on your head!
And now the ECB deposit rate is - .5, even worse. Time for bitcoin Warren, just saying. Come to the dark side, WE HAVE COOKIES!!!
Banks charging $5 million yearly to keep his $1 billion
He grows opium in his farms
Protect your wealth, dont store it in the system where it can be stolen!...Buy as many Ripple XRPs as you can afford!
GOLD SILVER CRYPTOS
An inverted yield curve reflects a loss of confidence in investments, that have distorted the statistics. A loss of confidence in long-term investments will also reflect the same sentiment that generates a recession. It likewise creates a bull-run in gold. Similarly, it creates a phenomenon of prepping; by people who lose confidence in the continuation of order in the system. Whether prepping by creating a pantry that is not dependent upon electricity; or prepping by removing funds from banks; or prepping by building an underground shelter, these people show the same judgement of those that have acted so as to invert the yield curve. The time of general wrath approaches: Revelation 11: 18 and people express a reaction in many ways. When political powers express threats and counter threats; this shows that financial instability begins as government policy. Intelligent and educated people attempt to protect themselves and their own assets. The BRIGHT ones, are taking action.
The financial storm brewing in the EU results in the collapse of the Euro. Ezekiel 7: 19 Revelation 18: 17 Psalms 46: 4-6. We approach the time of worldwide 'wrath' Revelation 11: 18: "The nations became wrathful, and Your [God's] own wrath came; and the time came to.....bring to ruin those ruining the earth." Israel will declare: "Peace and security!" 1Thessalonians 5: 2, 3 and Iran will BOMB them; Daniel 11: 44, 45 due to their great anger when their nuclear assets were destroyed by pilots. This 'sudden destruction' has worldwide implications, and the US joins the war against Iran immediately. Daniel 8: 20, 23-25.
All well but Bible and likes was written by reptilians and annunaki. It was manipulated sooo many times , according to regimes running who wanted upgraded slaves, so they did refurbishing. So many lies written in Holy books which shapes the people's believes, perspective and vision to being a limited one. That's what they want.
@@TarotRider-t2m Anybody who believes that reptilians can write anything is beyond my help. Christ said God's word the Bible is the truth John 17: 17. Satan is responsible for the lies that you yourself believe John 8: 44. Any vision that leaves out the possibilities of God is a narrow and limited one. Ascribing lies to God is exactly what Satan did right in the beginning; and you are doing his crowing for him. Satan; Gog of Magog is EXECUTED Revelation 20: 10 after spending 1,000 years in prison Revelation 20: 1-3 because he is the REAL source of lies and man-slaying. John 8: 44
But God's word is the truth John 17: 17 2Timothy 3: 16. That is why the Great tribulation is looming up into view; and the persons who have faith in God are the survivors John 3: 16.
@@kaybass520 Humans are hybrids of X chromosome of ape and Y chromosome of extraterrestrial. We were created 450000 years ago and since then our DNA has been manipulated to create slave race.
The elites are the reptalian hybrids with minimum of 50% reptalian DNA. They have been controlling everything since millennia. They created religion to keep us in control, they were worshipped as God's back then. Now through their elite hybrids we are again been controlled through banking, education, and media.
I believe in God but I don't believe that anything can save us unless we ourselves wake up from our manipulation. We are responsible for everything.
@@TarotRider-t2m Yet the account in Genesis says we are a creation of God. Also, our first parents threw paradise away, in that account. In our days, when the Great tribulation appears Paradise is regained. Luke 23: 43. But only for faithful persons; the meek and the righteous who love God. John 3: 16 Psalms 37: 11, 29. When the wicked are destroyed; Psalms 92:7 this brings the Great tribulation to an END. Satan is the man-slayer and the liar who deceives people, particularly about God and our origins. John 8: 44. But people who love God know He tells the truth, and they want to obey God, due to love. They express faith Romans 10: 13-15 and have the chance to experience healing when Christ arrives at the beginning of a cataclysm, that begins when Israel declares "Peace and security!" and they are bombed by Iran. Daniel 11: 44, 45 1Thessalonians 5: 2, 3 This event has multiple results, and means the present system has come to its end.
The new system under Christ Jesus Matthew 24: 14, 21, 22, 29, 30 takes over our affairs, and THIS planet will be redeveloped into a Paradise Luke 23: 43 into which the dead of former times will be raised up back to life. Acts 24: 15 Revelation 20: 13.
You say you believe in God; and yet you are calling Him a liar exactly the way Satan did. Genesis 3:1-5.
Yet my information is that God is truthful and righteous. It was Satan who lied; and who continues to lie.
So prophecy shows Satan, Gog of Magog is EXECUTED Revelation 20: 10 after spending 1,000 years in prison Revelation 20: 1-3. Also the political system is EXECUTED Revelation 19: 11, 19-21. And the wicked are destroyed Psalms 92:7.
So all those who CAUSED the violence, pestilence and famine Revelation 6: 8 pay for it with their lives.
But the faithful are found inside God's Kingdom at the time of Christ's arrival right at the beginning Matthew 25: 31, 34. So their healing, protection and survival are described in prophecy with CONFIDENCE. Revelation 7:9, 14-17. John 3:16.
So we do not save ourselves; but we are saved by Jehovah who has also provided the details in writing about what will happen, and what He will do.
We are saved due to the faith we have in God's righteousness and truthfulness.
Human beings are created by God, and we have purpose. The sin that has appeared will be dealt with in the course of time; when it is seen the real meaning of this sin out of control. Christ said if God did not act; no flesh would be saved Matthew 24: 21, 22. And in Ezekiel 38: 18, 19 Jehovah will speak when Gog [Satan] 'comes upon the soil of Israel'.
This is exactly what happens, when Israel declares "Peace and security!" and they are BOMBED by Iran. 1Thessalonians 5: 2, 3 Daniel 11: 44, 45.
So Christ is sent forth to be the King Revelation 11: 15, 18 and the present system comes into wide scale disasters.
YOU can find out the truth John 17: 17 and YOU can survive, and find healing Malachi 4: 2. First you need to see that your view of man's origins is an error and a fallacy.
Hows that Kraft Heinz investment going Mr Scrooge? you stingy old fart :D
Warren buy Bitcoin and you don’t need the mattress to stuff your cash in Europe
stock market interest rate formulas and many other of their math functions do not work with a negative interest number. that's a very strong indicator that we are officially in the weeds....a place we've never been nor have anticipated being in. I'm a cashing out Monday.
1:18 nice legs