txlaw Posted January 20, 2013 Share Posted January 20, 2013 http://www.cbsnews.com/video/watch/?id=50139345n Link to comment Share on other sites More sharing options...
Parsad Posted January 21, 2013 Share Posted January 21, 2013 http://www.cbsnews.com/video/watch/?id=50139345n Always some words of wisdom in any of his interviews. Thanks very much for posting. Cheers! Link to comment Share on other sites More sharing options...
Green King Posted January 21, 2013 Share Posted January 21, 2013 Interesting part is that Buffett is putting worlds of wisdom and the all i see from the reporter is incomprehension. Gives me great hope and comfort. Link to comment Share on other sites More sharing options...
berkshiremystery Posted January 21, 2013 Share Posted January 21, 2013 Buffett: U.S. debt on its own ‘not a problem’ Billionaire says deficit a lower percent of GDP than after World War II 2013-01-20 MarketWatch.com / WSJ http://www.marketwatch.com/story/buffett-us-debt-on-its-own-not-a-problem-2013-01-20?siteid=yhoof2 Link to comment Share on other sites More sharing options...
Liberty Posted January 21, 2013 Share Posted January 21, 2013 Thanks for posting! Always good to see Warren :) Link to comment Share on other sites More sharing options...
giofranchi Posted January 21, 2013 Share Posted January 21, 2013 Personally, I think that what matters is always total debt. And total debt as a percentage of GDP has never been higher than today in peace time. After WWII total debt was more or less 160% GDP: compare that with a total debt of 350% GDP we have today. Let’s say a family pays a 5% interest on its debt and its debt amounts to 3.5 times its revenues. Each year that family must pay 5% x 3.5 = 17.5% of its revenue in interest alone. Compare that to the US personal saving rate which today is 3.6%. If savings = investments, it means that we spend (Europe is the same, actually even worse!) almost 5 times more in interest than we invest. I don’t know if a family can prosper that way… What I know is that, if a business were to use its capital that way: spend on interest payment 5, invest 1; it would be very well on its way to bankruptcy. giofranchi Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now