"They Are Not Wrong to be Worried"
Last month Warren Buffet was interviewed by Charlie Rose on the current financial crisis. As usual Buffet offered the best analysis of the current situation and what to do about it. The complete transcript is well worth reading and the video of the show is also available. Below is an excerpt from the interview in which Buffet talked about how fearful people are now.
Charlie Rose:
There is a time to accumulate and a time to spend.
Warren Buffett:
Absolutely. You want to be greedy when others are fearful. You want to be fearful when others are greedy. It's that simple.
Charlie Rose:
What are they now?
Warren Buffett:
They're pretty fearful. In fact, in my adult lifetime, I don't think I've ever seen people as fearful economically as they are right now.
Charlie Rose:
Why is that, do you think?
Warren Buffett:
Well, it's because they -- they have seen the credit market seize up. They're worried about money market funds, although the latest proposition from government should take care of that. They've seen eight percent of the bank deposits in the United States get moved very skillfully, I might say, within the last couple of weeks from institutions that they thought were fine a few months ago to other institutions. They are not wrong to be worried.
Transcript
http://www.cnbc.com/id/26982338
Video of Broadcast
http://www.charlierose.com/shows/2008/10/01/1/an-exclusive-conversation-with-warren-buffett