2007-08-21

Crisis Counsel with Warren Buffet, Bill Miller etc.

Warren BuffettWill the subprime lending meltdown and credit crunch send us into a financial free fall? Fortune asked the sharpest minds in business to share their reactions to the downturn, and their insights on the road ahead.

  • Warren Buffett
    • Many institutions are marking to model rather than marking to market. The recent meltdown in much of the debt market, moreover, has transformed this process into marking to myth.
  • Wilbur Ross
  • Henry M. Paulson
  • John Mack
  • Bill Miller
    • These things flow through the system, and they're part of the system. They're normal. They happen usually every three to five years.
    • But these events represent opportunities. When markets get locked up like this, it's virtually always the case that you'll have opportunities if you have liquidity.
    • Instead of worrying how bad it's going to get, I think people should be thinking about where the opportunities might be.
    • The NYSE financial index is probably the best barometer of what's to come. So far it's telling you it's not over. It's still falling.
    • But just as financials lead on the downside, they will lead on the upside.
  • Robert Shiller
  • Jim Rogers
    • Market corrections are coming.
  • Jim Chanos
    • We don't know how bad this gets. The problem is we don't know how bad the hole is.
    • The areas of excess are going to get pulverized, and any overreactions will be areas for people to look for bargains ultimately.
    • But I don't think we're anywhere close to that yet.
  • Stephen S. Roach
  • Amy Brinkley
  • Laura Tyson
  • Jeremy Grantham
  • Ben Stein
Full Article Link - Crisis Counsel.

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