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Warren Buffet would be surprised if stock prices fell 50%

Buffet warned that another financial crisis was very possible, but does not see it happening anytime soon.
By Ananth Baliga Follow @antbaliga Contact the Author   |   March 14, 2014 at 11:29 AM
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NEW YORK, March 14 (UPI) -- Warren Buffet said Friday that he would be "surprised a lot" if stock prices globally fell by 50 percent, but said another financial crisis was possible.

The Oracle of Omaha, as Buffet is popularly called, said he did not expect stocks to fall from their current levels and that there would be another financial crisis "someday" but he didn't think it would happen anytime soon. Buffet was making an appearance on CNBC's Squawk Box when he made the comments.

"Humans will behave in crazy ways, both on the upside and the downside in the next 50 years. It's very unlikely they do it in the next few years because after something like 2008, once they get out of the emergency room, they're a little more careful for awhile," said Buffet.

Buffet said that after reading a preliminary draft of former Treasury Secretary Tim Geithner's memoir, he feels his calling the 2008 financial crisis an "economic Pearl Harbor" was an understatement.

Speaking of the economic recovery, following the country's plunge into a recession, Buffet said that he believes "this country will come through anything." He said that since its founding, Berkshire Hathaway stock had dropped 50 percent four times but has always rebounded.

Buffet has been outspoken critic of the Bitcoin cryptocurrency and continued to ask people to stay away from it, calling it a "mirage" without any intrinsic value.

Buffet also had some advice for General Motors, the company currently embroiled in allegations that suggest it did not recall vehicles despite knowing they had faulty ignition switches.

"Get it right, get it fast, get it out, get it over, but get it right first," he said.


[CNBC]

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