Saturday, May 4, 2013

Warren Buffett: 'Shot Heard Around the World' Coming


From CNBC:  ".....In response to a question on the Federal Reserve's massive quantitative easing program, Buffett said it will be "the shot heard around the world" when the central bank first indicates it will stop buying financial assets or start selling from their now enormous $3.4 trillion balance sheet. "we're in uncharted territory ... that's a lot of securities."

Because that liquidity has been supporting stock prices, people in the market will immediately reevaluate their positions.

Even so, he said, "the world won't end" and the market will survive. He repeated his long-held "faith" in Fed chief Ben Bernanke and said "we have benefited significantly, and the country has benefited significantly" by the Fed's actions….

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