Warren Buffett Explains the 2008 Financial Crisis

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A decade after the financial crisis, billionaire investor Warren Buffett explains what was behind the 2008 mayhem, what we can do to limit the damage and opportunities missed last time.

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46 COMMENTS

  3. I was raised that the stock market was a rich man’s game (yep, grandparents lost it all back in the day and preached that forever) but I’ve been around long enough to truly taste just how profitable it can be, with inflation at 9.2% surely these are desperate times, but in my opinion there’s no market condition a proper financial advisor can’t scale through, especially ones that’s been around since the crisis of ’08 and before.

  10. Newton said it best: "I Can Calculate the Motions of the Planets, but I Cannot Calculate the Madness of Men." No human, no AI, nobody can predict the market. Even people like Michael Burry who made bank off the crisis, he saw it coming, but he got lucky it happened when it did. The stock market can remain irrational a lot longer than you can remain solvent.

    Never believe anyone who tells you they know something nobody else does. If you've actually studied finance beyond surface level, you'll know that there's no trick, or model, or anything that can 10x your investment. When you see people making crazy returns, it's luck, nothing more. The only surefire way to make money is the way guys like Warren Buffet do it, smart but boring, and long term. Everything else is pure gambling.

    But yeah, humans never learn, there'll be another one, that's a safe bet, too bad nobody can tell you when.

  11. It is not true. US SEC (goverment institution) is responsible for not controlling properly funds like Madoffs. There was no "bubble". Events like that happens for cause😊.

  12. With markets tumbling, inflation soaring, the Fed imposing large interest-rate hike, while treasury yields are rising rapidly—which means more red ink for portfolios this quarter. How can I profit from the current volatile market, I'm still at a crossroads deciding if to liquidate my $125k bond/stocck portfolio.

  14. Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. A trader made over $350k in this recession influenced market

  22. What a load of BS… it was people like Mr Buffett who created the crash so they could come on and take cheap stock and gain easy profits… also, they can;t allow the everyday man to get too comfortable and rich… they (we) need to be kept in our place… and that is mostly really poor.

  23. Wealth restoration formula simple (2 billion public * 3 cents=60 million) per young American (approximately 100 million public out of two billion public) but game theory professors need to check zero-sum logic

  24. Cents on the dollar reinsurance based on the global airport (loss-making) order book augmented by energy futures can make markets whole again within 24 hours but the problem is arbitrage versus leverage cycles

  26. What a pile of BS. The mortgage originators were falsifying mortgage applications to make money. The applicant was not required to provide their annual income. In many cases the originator falsified the annual income for them. The banks bought the garbage mortgages and hid them in with the good mortgages into massive bonds. The credit agencies falsified the AAA rating of the bonds. These bonds were sold all over the world. When the part time worker fell behind on their payments the true value of the bonds started to surface. AIG which insured the mortgages went belly up and the Fed took them over. Country Wide Financial went belly up. Leman Brothers was allowed to go belly up while their competitors were bailed out. Buffet knows the truth and doesn't want it made public. What a croc of cow doodoo. Henry Paulson was the Treasury Secretary and he was previously the CEO of Goldman Sachs. They famously made money by building bad mortgage bonds at the request of the guy made famous by The Big Short. The housing bubble was made by Alan Greenspan holding real interest rates for big firms close to zero for too long. He bailed. Paulson bailed, Bush bailed. They were like the three monkeys. Hear no evil, See no evil, Speak no evil.

  28. I wonder if people that experienced the 2008 crash had it easier because this market conditions are driving me to insanity, my portfolio has lost over $27000 this month. alone my profits are tanking and I'm don't see my retirement turning out well when I can't even grow my stagnant reserve.

  33. All of this is to destroy NETANYAHU !Netanyahu a friend with Putin was supposed to make a proxy relation with Morocco Saudis Turkey.. remember that US with its Hamas friends in one shot ,undermined Russia s friends and relation with M.East !this was an US operation for sure all the Putin s friends are damaged divided in Central Asia and they knew whats going to happen with Netanyahu !Victoria Nuland in 2022 wanted Israel to join the sanctions against Russia!Israel did not agree with that!
    Hamas do not care about palestinian people they are millionaires in Qatar a pro western !
    the damage is already done by US, divide and conquer!

  37. During the 2008 collapse, Warren Buffet said, "There will always be more pie" meaning that the Federal Reserve wil just print more money. But what he failed to explain is that after printing more money your slice of pie will be a smaller percentage of pie compared to all the new pies on the shelf.

  42. The main problem with the GFC was mortgage backed securities that were given AAA credit ratings. Unfortunatlely, banks began lending to debtors who were not a good credit risk (subprime mortgages), of course, when interest rates increased these mortgages fell over. Not only did the mortgage bcked securities lose value but so did insurance schemes eg credit swaps taken out on the security. The result was AEG collapsed, Lehman Brothers collapsed and the good old taxpayer had to bail out the US banking system. The taxpayer got nothing in return, not even equity in the banks they bailed out. Huge transfer of weath from the indebted tax payer to wealthy institutions. Clearly, the US requires a well maintined regulated banking system as capitalism, by itself will occasionally collapse.

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