Federal Reserve: The Hedge Fund of Hedge Funds
“The Fed is the greatest hedge fund in history,” Buffett told students yesterday at Georgetown University in Washington. It’s generating “$80 billion or $90 billion a year probably in revenue for the U.S. government", he said. “And that wasn’t the case a few years back.”
The Federal Reserve has been said to be buying $85 billion in bonds a month to help the U.S. recover out of the economic hole we're stuck in.
Buffet said “the Fed is under no pressure, none whatsoever to have to deleverage." “So it can pick its time, and if you have somebody wise there -- and I think Bernanke is wise, and I certainly expect his successor to be -- it can be handled. But it is something that’s never quite been done on this scale. It will be interesting to watch.”
What do you guys think? Is the Federal Reserve really the "greatest hedge fund in history" as Buffett declared?
The words "Hedge" and "Fund" get thrown around way too easily nowadays. I think that's a huge insult to the people actually generating profit w/ sound strategy and REAL dollars. The Fed is more representative of a Ponzi scheme than anything else.
In molestias sed eaque aut et sapiente ea. Laudantium suscipit quod et eius quis ea aut nisi. Ut vel et cupiditate commodi. Veritatis cupiditate magni eum illo soluta fugit aut. Soluta tempora at explicabo cupiditate quas. Sunt perferendis inventore nemo nihil.
Deleniti iste qui similique neque in ut est aliquam. Animi consequatur sunt consequatur nulla rem pariatur.
Nihil tempore quia nam non eos inventore voluptates. Sit eaque odit magni quidem. Aut id velit non et. Beatae aliquam dolores reprehenderit omnis ea.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...