Here We Go Again, Again

Warren Buffett turns bearish on housing:

Although the famously enthusiastic capitalist profitably rode to the rescue of Goldman Sachs and Bank of America in the fall of 2008, he is professing grave concerns on the proliferation of financial derivatives in the wake of the Great Recession.

Indeed, Buffett told Forbes in no uncertain terms last week that he fears massive financial “discontinuity” will take place as a result of these opaque and leveraged positions — in other words, another Lehman Monday, or worse.
This is not typical Buffett speak.

Nor were the Oracle’s comments on the housing market. Despite dozens of interviews in recent years in which he insisted he was very bullish on housing, Buffett is now pulling back, saying that “housing is not that strong yet; I’m surprised by that.” Buffett should know. His Berkshire Hathaway owns some of the biggest housing-related companies in the world, from Benjamin Moore paints to Shaw carpets.

Advertisement

Once again, all is proceeding as I have foreseen. Once again, I will be drinking my lunch.

Recommended

Trending on PJ Media Videos

Join the conversation as a VIP Member

Advertisement
Advertisement