Warren Buffett slams idiocy in Washington over debt limit
October 16, 2013, 8:52 AM
- Bloomberg News
- Warren Buffett
Billionaire Warren Buffett slammed
lawmakers for idiocy in using the debt-limit as leverage in a political dispute
“over some extraneous matter.”
“It is a mistake to suspend activity in the United
States over something that is unthinkable to do,” Buffett said in an interview
with CNBC.
It can take “20 minutes” to ruin a reputation for
paying obligations that the U.S. has built up over 237 years, he said.
He described threatening a default as “poison gas” and
“a political weapon of mass destruction.”
Lawmakers must come together and agree never to use the
threat again.
“There are certain weapons that are just improper to
use,” Buffett said.
Buffett said there was no need to stop investing because
of the “mess” in Washington.
“It is perfectly OK to buy securities,” he said. “It is
not necessarily a mistake to buy stocks because you don’t know the outcome of
something that is happening in Congress.”
The chairman of Berkshire Hathaway
/quotes/zigman/219651 /quotes/nls/brk.a BRKA
said there
has already been “tiny bit of damage” from the debt-limit standoff and that the
economy would be hurt if Congress fails to reach a deal before Thursday, when
the Treasury says it will have trouble meeting its financial obligations.
A protracted crisis without a debt-ceiling increase
would cause chaos over time, he said.
Earlier on Wednesday, Berkshire’s Marmon Group
arm announced it is buying the drinks dispensing division of U.K.-based IMI
/quotes/zigman/154461 UK:IMI for $1.1
billion.
“We did not buy it with a condition that we could call
off the deal if there was a no vote on the debt limit change,” Buffett said.
Buffett once again threw his weight
behind J.P. Morgan Chase & Co. CEO Jamie Dimon. “You cannot be active in a
big business without making some mistakes,” he said. “And sometimes there will
be big ones, but you have to look at the whole record.”
Buffett has said in the past that he personally owns
shares of J.P. Morgan
/quotes/zigman/272085 /quotes/nls/jpm JPM
.
— Greg Robb
Follow Greg on Twitter @grobb2000
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Such a biased old wine bag. Debt ceiling only weapon of mass distruction to
his portfolio, not to future generations that have to pay it back.
The deniers would deny, if the were standing in the Arctic in bermuda shorts.
Just reading some of these comments on how they think Government finances work
makes you wonder what Civil War bunker they crawled out of
Someone once said: "we get the government we deserve". Hopefullly people
voting Republican in the past will remember next time. Not saying they don't
have some valid points, but how they go about the process is just
wrong.
@rick
mueller
Really? I'm not a GOP old guard Repub supporter, but you don't think Reid mindlessly refusing to take a vote on ANYTHING sent to the Senate isn't obstructionist and being a part of this whole thing?!
What about a bureaucrat and politician stating "I refuse to negotiate" - Barry Obama. THAT's not part of the problem?!
Dude, you need to pull the political bias hood off your head and look at the real world now and then.
Really? I'm not a GOP old guard Repub supporter, but you don't think Reid mindlessly refusing to take a vote on ANYTHING sent to the Senate isn't obstructionist and being a part of this whole thing?!
What about a bureaucrat and politician stating "I refuse to negotiate" - Barry Obama. THAT's not part of the problem?!
Dude, you need to pull the political bias hood off your head and look at the real world now and then.
I don't get the whole barry thing...oh well. GOP in congrees need to realize
that the dems are not going to negotiate on ACA, and they don't need to because
it is law.
Oh yeah, the law. Barry only follows the laws he likes and directs his
attorney general to go after people enforcing the laws he doesn't like. The ACA
law says that companies need to pay a penalty for not complying with "the law".
Unless of course you are a friend of Barry like most of Wall Street.
" It can take “20 minutes” to ruin a reputation for paying
obligations that the U.S. has built up over 237 years, (Buffet) said.
(Buffet) described threatening a default as “poison gas” and “a political weapon of mass destruction.” "
You're a liar, Warren. The Treasury takes in several times as much revenue as is required to service the bonds. They can pay the bondholders and they will pay them - whether or not the credit limit (debt ceiling) is raised. You know this perfectly well.
I wish your Daddy were alive, Warren. He'd spank you well (and properly) for telling so many lies, and for encouraging the government to loot Americans and buy you and your buddies to keep themselves in power.
(Buffet) described threatening a default as “poison gas” and “a political weapon of mass destruction.” "
You're a liar, Warren. The Treasury takes in several times as much revenue as is required to service the bonds. They can pay the bondholders and they will pay them - whether or not the credit limit (debt ceiling) is raised. You know this perfectly well.
I wish your Daddy were alive, Warren. He'd spank you well (and properly) for telling so many lies, and for encouraging the government to loot Americans and buy you and your buddies to keep themselves in power.
@David
Wooten Does the treasury take in enough to refund the debt if
lenders lose faith in the US, refuse to roll over what comes due and demand
immediate payment ?
@Ralph Romano @David Wooten Rolling over debt does not have to mean rolling
it over to the same party that wants the principle (and gets it). 'New' debt to
replace old debt could simply be sold on the market. Since the old debt was
paid off, the total public debt would be unaffected and not result in a breach
of the credit limit (debt ceiling).
However, given that the Senate is now going to approve a measure that allows the president to increase the debt ceiling any time he wants unless Congress overrules him with a 2/3 vote, I would, frankly, prefer to let the bondholders just twist in the wind (after I sell mine tomorrow).
However, given that the Senate is now going to approve a measure that allows the president to increase the debt ceiling any time he wants unless Congress overrules him with a 2/3 vote, I would, frankly, prefer to let the bondholders just twist in the wind (after I sell mine tomorrow).
Warren Buffett has forgotten more about business than most people know. As a
long-term major holder of BRKB, not only has this man made me a lot of money but
I'm sure he would be better at handling our country's economy than the dolts
that are there now. Instead of hiring a "financial advisor" you'd be better
served by imitating Mr. Buffet. In Warren I trust
@SC
COX There was a article on MW recently detailing how much money
Buffets company had made from supporting GS and other financial corporations
immediately after 2008, and it was speculated by commentors that he had
benefited from "inside knowledge" about who the FED was going to "look
after".
Buffet only cares about making money. He is the ultimate insider in
government and business. Any fool can make money if he knows what laws are
coming and knows where the TARP money actually went.
@Nimesh Patel Nimesh, Warren Buffett has made me hundreds of thousand dollars
since 1984. My family & I could not care less about your opinions. You are
simply on the outside looking in. Your loss, my friend
Believe me when I say, I'm happy your family has financial security. It's too
bad that Barry and Warren have so decisively slammed the door behind them so
that others can never attain the same security. Oh yes, they say they are for
fairness and equality, but only the select few have access. That is why "I" am
on the outside with the rest of the hordes and our children.
Ted Cruz has you people going in circles. He's gotten all of you to take eye
off the ball while he dribbles it in another direction. His wife, Heidi Nelson
Cruz is a "bigwig" at Goldman Sachs in the investment department. Remember them?
They're the ones with the CD Swaps that just about brought down the entire
world. Oh but that's not important. Let's stay on course to deny people health
coverage even though we don't have one idea about what to do about it. Funny
that the ACA is very similar to Romney Care. Very similar to what the
conservative Heritage foundation had proposed. But whoa there fella! A black man
is going to do it so now we're all against it. Yes sir, let's beat him down
every last chance we can. We're going to make him a one-term Prez. LOL. How'd
that all work out McConnell. Republicans lost and they just can't get over it.
They're still whining.
@Bob
Jan And dog dung appears similar to fudge on first glance. Doesn't
mean its the same. No matter who the baker is.
@glenn evans @Bob Jan I'll bet Goldman loves having a Senator in their back
pocket.
And you need your eyes checked, if not your nose. That was a bad illustration/comparison.
And you need your eyes checked, if not your nose. That was a bad illustration/comparison.
so paying the bills due on the 2 wars, the 2 tax cuts, the Part D drug
giveaway to the BIG PHARMA'S, TSA and Homeland Security are unacceptable??? Well
then, the Congress and Prez and VP shouldn't have enacted them.
Plunging the nation ever deeper into unpayable debt in order to fund current
government expenses is also destructive, even more so than the current
crisis.
There is a price to pay for this debt, not only by our children and grandchildren, but by us, right now, in the form of ever growing interest payments, and eventual currency and economic collapse.
There is a price to pay for this debt, not only by our children and grandchildren, but by us, right now, in the form of ever growing interest payments, and eventual currency and economic collapse.
@Bob
Jan @Bill
Udy The general public has become apathetic and it will take
nothing short of a miricle to restore what the Democrats and weak kneed
Republicans have destroyed in order to get re-elected......Very Sad, I may never
see, "Made in USA" again.
Yeah, whatever, Buffet. You are nothing more than a spokesperson for the
DFL. If it makes YOUR stocks go up you are happy, even if it bankrupts
taxpayers.
Buffet has shown himself to be nothing more than an obama ho the entire time
the president has been in power. He is bought and paid for so his comments are
no more valuable than Jay Carney.
Our modern global economy is a vast complicated entity.....and no...the
dummies in Washington and the dummies on MW don't have a clue.
Old Warren is talking about how terrible this is???? oh my..... now aside
from the BullS.... ask him how many times he has threatened other coporations or
business deals with non payment or how many times he has held his hands around
another company's throat in closing a devestiture or acquisition? Someone
should squash his disgusting head.
weapon of mass destruction? Yup destroying the wealthy even more as most of
the poor already suffered the consequences when they printed free money and the
rich is getting a lot richer. So Warren buffet better keep his mouth shut
I have been telling this since long time that listen to old man.He has wisdom
and experience of successful investor.His futuristic views are correct and on
time.
@Chiman
Patel Sorry to dissapoint you, but his views are for himself and
his billions.
Why hasn't he spoken out with great passion about reducing government spending, reducing entitlements, reducing debt, controling the waste, fraud, and abuse, and then finally spending some of his money to help in those areas?
Why hasn't he spoken out with great passion about reducing government spending, reducing entitlements, reducing debt, controling the waste, fraud, and abuse, and then finally spending some of his money to help in those areas?
@Roy
Anderberg @Chiman
Patel Agreed Roy. Buffett "talks his book" and his liberal politics.
He along with George Soros, Bill Gates and other liberal billionaires love the
big government, high spending type of politics that lets them all profit
handsomely.
Warren wants it both ways, gov't to promote Wall St. and gov't to stay out of
Wall St. He might take a dent today if the gov't doesn't keep it's bond
rating.
Short and sweet, for the MW editors who have blocked my 4 previous
comments:
The Debt ceiling has nothing to do with default on our (already massive) debt. The interest payments, now about 30% of our revenues, come first. That is the LAW.
This debate only affects new (massive Progressive unsustainable entitlement) spending. If we do not raise the credit card limits, we will have to do without more cake for the Takers. This is not a bad thing, this is a good thing.
Buffet KNOWS this, Obama, Reed and Pelosi KNOW this along with most the MSM.
Saying anything otherwise is..."misrepresentation" (the PC word for it)
Congress is doing their job, we should let them! And, we should applaud all those there who have fiscal sanity, and toss out all those fools who do not.
The Debt ceiling has nothing to do with default on our (already massive) debt. The interest payments, now about 30% of our revenues, come first. That is the LAW.
This debate only affects new (massive Progressive unsustainable entitlement) spending. If we do not raise the credit card limits, we will have to do without more cake for the Takers. This is not a bad thing, this is a good thing.
Buffet KNOWS this, Obama, Reed and Pelosi KNOW this along with most the MSM.
Saying anything otherwise is..."misrepresentation" (the PC word for it)
Congress is doing their job, we should let them! And, we should applaud all those there who have fiscal sanity, and toss out all those fools who do not.
@Aspen
Pittman If Congress really was doing their job we would not be seeing
this kind of blackmail. The full faith, and credit of the nation is not a
bargaining point to be used in a game of political one upmanship.
@Cary
Doyle @Aspen
Pittman What you call "blackmail" is really the give and take of
political disagreements. The credit of the nation is always a bargaining point
as it should be. Some of us believe the USA's credit rating should tank IF the
debt limit is raised. My credit score would be harmed if I take on too much
debt. But then I'm not government just a taxpayer.
@Jeff
Miller @Cary
Doyle @Aspen
Pittman Exactly right Jeff. You are not a government. To be more
specific. You are not a government with the ability to print it's own currency.
Greece being an example of a government that cannot.
The idea that the US, as a government that can print it's own currency defaulting on it's debt is absurd. Especially when that currency is the de-facto global reserve currency. Any indication by the government that we will not pay our bills is a signal that that non-payment is purely willful since we can always print more money, or add another zero to the balance sheet.
In other words we are just telling our creditors we refuse, or are thinking about refusing to pay.
What you are saying is that we should debate whether to be a willfully deadbeat nation, or not. As supposedly the worlds "greatest nation" do you really think that is the image we should project?
The idea that the US, as a government that can print it's own currency defaulting on it's debt is absurd. Especially when that currency is the de-facto global reserve currency. Any indication by the government that we will not pay our bills is a signal that that non-payment is purely willful since we can always print more money, or add another zero to the balance sheet.
In other words we are just telling our creditors we refuse, or are thinking about refusing to pay.
What you are saying is that we should debate whether to be a willfully deadbeat nation, or not. As supposedly the worlds "greatest nation" do you really think that is the image we should project?
@Cary
Doyle @Jeff
Miller @Aspen
Pittman Yep! If that's what it takes to get the government to live
within our means, then yes, absolutely. My responsibility is to my country first
not the world.
The idea that a label, "greatest nation" should be arbitrarily defined as spending without limit is absurd. The debate is not really whether to pay our bills or not it is whether we should incur those bills in the first place.
And yeah, of course I understand I'm not government and can't print currency. Not legally anyhow. But as a taxpayer I stand liable for the value of all the currency being printed by the government and it is my duty to ensure that value is maintained for today and all tomorrows.
The idea that a label, "greatest nation" should be arbitrarily defined as spending without limit is absurd. The debate is not really whether to pay our bills or not it is whether we should incur those bills in the first place.
And yeah, of course I understand I'm not government and can't print currency. Not legally anyhow. But as a taxpayer I stand liable for the value of all the currency being printed by the government and it is my duty to ensure that value is maintained for today and all tomorrows.
@Aspen
Pittman What happens if the interest payment comes before the
revenue ? Interest payments and government revenue are not evenly distributed
over each day of the year.
OK, so when do we quit our excessive spending? Warren's main concern is the
fear of losing his billions like the rich did in the last depression. He and
will say anything to avoid a personal loss in stocks.
So, when do we limit our credit card purchases? When do we quit our deficit spending? Why don't we deserve a downgrade? We do!!! We simply continue the waste, fraud, and abuse. We fight wars that we have no business in, we splurge building mosques and buying prayer rugs, but we will not bring home that money and fix a broken ecomomy. What we really need is a reset button called a depression and once again get things on a level playing field for all. By now we would be coming out of it in a real world, with real opportunities and less government and more fairness,
So, when do we limit our credit card purchases? When do we quit our deficit spending? Why don't we deserve a downgrade? We do!!! We simply continue the waste, fraud, and abuse. We fight wars that we have no business in, we splurge building mosques and buying prayer rugs, but we will not bring home that money and fix a broken ecomomy. What we really need is a reset button called a depression and once again get things on a level playing field for all. By now we would be coming out of it in a real world, with real opportunities and less government and more fairness,
@Roy
Anderberg well then,stop wars you can't pay for. stop giving tax
cuts you can't pay for. Stop giving part D drug giveaway you can't pay for. I
could go on but you don't listen.
the congressional reps are responsibly listening to the constituents who are
fed up with federal waste, fraud and spiraling debt.
no sympathy for the caterer in DC who is lamenting fewer tax payer funded Christmas parties - please - she sounded insane
no sympathy for the caterer in DC who is lamenting fewer tax payer funded Christmas parties - please - she sounded insane
@Apple
Tree OH Apple Tree, remember that the word "Christmas" is not
politically correct. They are having "Holliday Parties."
@Roy
Anderberg @Apple
Tree The parties are also becoming a dirty word. Maybe it would be
more appropriate to say " holiday get togethers ".
Interesting first for MW, 4 posts this morning, all marked PENDING...so much
for free speech
Good old boy trying to protect his own financial rear end. He has lobbied
the Obama administration and given advice to make sure Berkshire gets the best
return possible.
@J
Lee He's also got tens of thousands of investors who he's also
concerned for. Too bad our Congress didn't feel the same about their
constituents instead of their "campaign donors". Then maybe we wouldn't be in
the mess we're now in.
@Bob
Jan @J
Lee Bob Jan, Bob Jan, We are in the mess because government
spends too much, taxes too much, and interferes too much, and finally, the Feds
keep right on printing money trying to raise a sinking ship.
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