Buffett says U.S. Treasury bubble one for the ages
By Jonathan Stempel
NEW YORK (Reuters) - Warren Buffett, whose Berkshire Hathaway Inc (BRKa.N) (BRKb.N) sits on $25.54 billion (17.8 billion pounds) of cash, said worried investors are making a costly mistake by buying up U.S. Treasuries that yield almost nothing.
In his widely read annual letter to Berkshire shareholders, the man many consider the world's most revered investor said investors are engulfed by a "paralyzing fear" stemming from the credit crisis and falling housing and stock prices. Treasury prices have benefited as investors flocked to the perceived safety of the "triple-A" rated debt.
But Buffett said that with the U.S. Federal Reserve and Treasury Department going "all in" to jump-start an economy shrinking at the fastest pace since 1982, "once-unthinkable dosages" of stimulus will likely spur an "onslaught" of inflation, an enemy of fixed-income investors.
U.S. debt to fall to junk bond status?
Moody's signals concern U.K. also could lose AAA rating
December 10, 2009 12:50 am Eastern By Jerome R. Corsi© 2009 WorldNetDaily
Is U.S. government debt about to be lowered to junk bond status?
While that risk is not imminent, the Obama administration is now officially on notice that downgrade of the U.S. sovereign credit rating is not out of the question.
On Tuesday, credit-rating agency Moody's Investor Services warned the U.S. and Britain may lose their AAA sovereign credit ratings due to deteriorating finances, according to a report by Dow Jones Market Watch.
Moody's has decided that for now the U.S.
will retain AAA ratings, however, both nations are being moved to the