[dxhdr]

"'The Fed is the greatest hedge fund in history, ... it's generating $80 billion or $90 billion a year probably' in revenue"

Can you get more asinine than that? Probably? How is this relevant when the Fed is printing $85 BILLION a month to finance ongoing bond purchases? Guys like Buffet must absolutely love the Fed because they have an outlet to offload their illiquid garbage bonds and derivatives.

Imagine if you made a terrible investment that loses most of its value... you're screwed, you have no choice but to suffer, eat the losses, and move on. But wait! The government opens a shop where they'll buy your investment for close to you original principal. You're saved! Amazing. I'd write nonsense articles praising the government too.

[jonnathanson]

Buffett has made a killing owning businesses that print money, invest on float, and whose risk is backstopped by the federal government. Businesses like insurance, finance, and so forth. The Fed is his bread and butter. It's his risk absorber.

It makes total sense for him to keep playing this game, because he benefits so fantastically from it. Everyone else should take what he says for what it is. The agenda is pretty loud and clear.

[zeckalpha]

I don't think you know anything about Buffett's investment strategies. If this is the way you think Buffett operates, you should read https://en.wikipedia.org/wiki/The_Intelligent_Investor

[onebaddude]

>illiquid garbage bonds and derivatives.

You can go to the FED site and look at all the bonds they purchased from the financial institutions. Outside of the Maiden Lane's, most of the bonds have increased in value. This was a profitable trade for the FED; liquid cash for bonds well below par.

[moocowduckquack]

Illiquid bonds are only hard to spend now, but not necessarily unprofitable in the long run, especially if you can buy them cheap.