JULIA LA ROCHE 00:00
Our next question comes from [Inaudible] Patel. He says, Charlie in your past speeches, you have mentioned the term functional equivalent of embezzlement to describe situations where bubbles can form because both parties involved in a bubble believe the asset to be worth more than it truly is. Can U.S. Treasury bonds be such a case today? And what are the implications, since Treasury assets underpin the value of every other asset? Thank you for all you do to educate us.
CHARLIE MUNGER 00:39
Well no, I don’t think we have a bubble in Treasury securities. I think they’re a bad investment when interest rates are this low. I never buy any and neither does Daily Journal. But, no, I don’t think Treasury securities are a big problem.
I do think that we don’t know what these artificially low interest rates are going to do or how the economy is going to work in the future as governments print all this extra money. And I have – The only opinion I have there is that I don’t think anybody knows what’s going to happen for sure. Larry Summers has recently been quoted as being worried that we’re having too much stimulus. And I don’t know whether he’s right or not.
"The only opinion I have there is that I don’t think anybody knows what’s going to happen for sure." ~Charlie Munger
And then, you look at the economists today.😂