Warren Buffet owns more U.S. Treasury bills than the Federal Reserve.
Remember what I was saying about the bond market yesterday?
When Warren Buffett starts buying them up, well, the bond market has become even more important.
And when he owns more than the Federal Reserve, pay very close attention!
https://qz.com/warren-buffett-berkshire-hathaway-treasury-bills-fed-1851613106
Warren Buffett's Berkshire Hathaway holds more U.S. Treasury bills than the Federal Reserve
Berkshire has $234.6 billion worth of investments in T-billsRocio Fabbro (Quartz)
HistoPol (#HP) 🥥 🌴 reshared this.
HistoPol (#HP) 🥥 🌴
in reply to Chris Trottier • • •#Finance #CapitalMarkets
This concentration of government bonds should be illegal.
Aren't their any antitrust laws against this quasi "monoply" in government IOU's?
Chris Trottier likes this.
Eva Chanda
in reply to Chris Trottier • • •Chris Trottier
in reply to Eva Chanda • • •HistoPol (#HP) 🥥 🌴
in reply to Chris Trottier • • •#Tbills
(1/n)
If the investor weren't #WarrenBuffet, I'd claim that he has a short memory.
Not even a year ago, and the underlying structural problems of US budget policies are still there.
Via #NYmagazine
"When #Wall Street sizes up the world’s risks, one way traders make their bets on the future is through the market in #USTreasuries — that is, #bonds representing the government’s debt.
Since August, there has been...
https://nymag.com/intelligencer/2023/10/treasuries-are-a-usd24-trillion-problem-haunting-wall-street.html
Chris Trottier likes this.
HistoPol (#HP) 🥥 🌴
in reply to HistoPol (#HP) 🥥 🌴 • • •#Tbills #BondVolatility
(2/n)
...no more critical story in finance than what 👉amounts to a slow-motion crash of this $24 trillion market. 👈 Many longer-term bonds that were issued just a couple years ago 👉are now trading for a mere of 50 percent of their face value. 👈 In stock-market equivalents, that kind of decline 👉would rate as a ... 1)
1)
https://www.morningstar.com/markets/markets-brief-why-have-bonds-been-so-volatile-will-that-continue
Markets Brief: Why Have Bonds Been So Volatile? And Will That Continue?
Morningstar, Inc.Chris Trottier likes this.
HistoPol (#HP) 🥥 🌴
in reply to HistoPol (#HP) 🥥 🌴 • • •#Tbills
(4/n)
...full-scale collapse👈 — and this is a category of asset that is regarded by most investors as very safe."
Also, someone (not Mr. B.) that has most of his/her expenditure not in dollar terms. There is a significant currency risk on top of that.
But then, there's volatility, and there were many articles about this at the beginning of th>is year:
"By one measure, the #bond market was more volatile than it was in any other year for at least the last decade."
...
Chris Trottier likes this.
Chris Trottier
in reply to HistoPol (#HP) 🥥 🌴 • • •@HistoPol Things change quickly in a year. There was doubt that the Fed would be able to maintain interest rates like this for so long. People thought that Jerome Powell would fold under political pressure.
But what’s happened over the course of the past year is that the U.S. dollar has pretty much made everyone their daddy – even as inflation proved stubborn.
Jerome Powell wanted capitulation. And it looks like he’s getting it.
HistoPol (#HP) 🥥 🌴 reshared this.
HistoPol (#HP) 🥥 🌴
in reply to Chris Trottier • • •Agreed.
What I'm saying is that
1) structurally speaking, this recovery is built on sand.
2) #WarrenBuffet is assuming a huge cluster risk by putting "so many eggs in one basket. "
Somehow, he seems know something, which most investors on the market do not.
//
HistoPol (#HP) 🥥 🌴
in reply to HistoPol (#HP) 🥥 🌴 • • •#Tbills
(5/n)
...Well, and then there still is the considerable risk of another #OrangePeril term .
Not only #Elmo, but from the academics, there is the possibility of bedlam and #CivilWar:
https://mastodon.social/@HistoPol/110379573947039575
...which is not conducive to a stable investment environment.
//
HistoPol (#HP) 🥥 🌴 (@HistoPol@mastodon.social)
Mastodon