Warren Buffett says he’s not worried about Fitch’s U.S. downgrade

CNCB's Becky Quick reports on the latest comments from Berkshire Hathaway CEO Warren Buffet. For access to live and exclusive video from CNBC subscribe to CNBC PRO:  

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39 thoughts on “Warren Buffett says he’s not worried about Fitch’s U.S. downgrade

  1. I admire him for saying it’s a political choice American’s have to make, because that’s true. How congress handles our money is based on who we vote in.

  2. First of all, Buffett’s purchase of US bills is meaningless. They are as conservative as anyone can get. Second, Buffett is very unlikely to admit the US has problems with their debt load. He’s fully invested in the long term sustainability of the US economy. He does not want to plant a seed of doubt in anyone’s mind. Third, he is basically wrong already. Interest rates across the board have gone up since then Fitch downgrade. Stocks and bond holders have both lost money.

    1. At first the yields weren’t moving much after the downgrade. But in few hours the spike got ramped up shortly why doesn’t she call again and check if 100bps+ means small exchange of his margin

    1. He isn’t lying. People from the Midwest are saints. I never care when my credit score drops either. Who cares

  3. For now is almost a nothing burger, just a warning that continuing high fiscal deficits, high debt to gdp, and the risk of high inflation environment for longer, might go South at some point in hopefully a not very near future. Definitely, not a AAA for many years now. The timing seems more appropriate for hedge funds, bond funds, and future bond investors hoping to squeeze higher yields from the US treasury in the next debt issuances.

  4. The question is not if the US Government is insolvent now, the question is IF the US Government can turn this ship around (New Captain with a vision and a crew that believes). there are answers (painful ones) to all the fiscal problems we just need a new CEO (with a heart) to clean house. We are the World Reserve Currency, we take in a lot of revenue, we can cut spending & find new revenue, lower beureaucracry and encourage individualism for new innovation. As Buffet would say, is there an intrinsic value to USA, and at what discount?

  5. It’s not being worried about a default! It’s the fact that long and medium term interest rates will go up… I hear and extra 1.5 trillion bonds will be up for sale in the 6-8 months

  6. Dont worry about the downgrade to AA+, worry about overpriced stocks and a slowing economy, the inverted yield curve tells us more than people like to hear. Additionally there is a massive AI bubble, more fantasy than real business…

    1. There ya go looking at historical indicators with 99.9% accuracy again. You’re supposed to just keep buying and not ask questions

  7. Wait a minute, are these the same rating agencies that willfully rated sub-prime mortgages that led to the Great Recession, higher than they ought to have been rated, for profit?

  8. He’s buying short dated t-bills as a cash proxy, not long bonds. That’s where this problem is. The government can’t even issue new long bonds because it will reck the financial sector.

    1. Exactly. Buying 3-6 months t-bills generally means you are pessimistic about the financial health and future growth, at least for the short term. Am I wrong?

  9. Warren Buffet also did quote in 2011, that the Total Debt of a country shall not exceed 3% of the GDP😂

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