Warren Buffett says there's no real estate bubble. Will next market crash be due to auto loan or student debt?

It will be when everyone realizes Trump is enriching the 1 percent more at everyone else's expense.

To give the 1 percent an idea of how things will be when nobody has money to guy their stuff, we'll simply stop buying their stuff for a few days. This will hurt us far more than it will hurt them, but they'll be hurt regardless. All that remains is what Trump will do about that.

Econumizt wrote:

To give the 1 percent an idea of how things will be when nobody has money to guy their stuff, we'll simply stop buying their stuff for a few days.

Who are "we"? You and Jill Stein?

Econumizt wrote:

It will be when everyone realizes Trump is enriching the 1 percent more at everyone else's expense.

To give the 1 percent an idea of how things will be when nobody has money to guy their stuff, we'll simply stop buying their stuff for a few days. This will hurt us far more than it will hurt them, but they'll be hurt regardless. All that remains is what Trump will do about that.

Worst post about economics I've seen on here in a long time, congrats on your made up story.

Auto loan debt isn't big enough to shock the wider financial system. Also, auto loan debt is tied to collateral that is easy to sell. So, defaults are quickly turned into losses instead of gradually eating away at neighboring property values.

Student loan debt has a lot more flexibility than mortgages. It is far easier to get forbearance or a deferral and also easier to refinance to stretch out payments due to the low transaction costs compared to mortgages.

There could be an equities bubble. Tesla. Apple, Amazon and others have valuations that are just crazy. Tesla makes a few cars and solar roofs, but is valued more than GM. Apple has no sign of coming up with the "next big thing". Tweaks to its current line of products do no bode well for the future. And Amazon is taking huge risks buying Whole Foods and moving into a future of shopping that can easily be replicated by a competitor. Add that to a weak energy sector and a floundering dot com sector, and you have the makings for a pretty big market correction at the least.

The Fed is raising interest rates in order to crash the stock market in 2018.

Apple has a PE (17) that's less than Weyerhaeuser (23). They haven't been valued as a growth stock in ages. Their forward looking PE is only 13.8 and they have tremendous cash reserves despite putting $10 billion towards R&D last fiscal year.

There is nothing similar between Apple and Amazon other than they start with the same letter.

Doesn't the tech sector explain all the gains over the last 12 mos? (And since Nov 2016?)

Defaulting on student loans don't matter. They follow you for life even through bankruptcy. Your wages get garnished as soon as you get a job. That's not enough to take down the financial system.

Crusted Butt 💩, Colorado USA 🇺🇸 wrote:

Warren Buffett says there's no real estate bubble. Will next market crash be due to auto loan or student debt?

Did Warren Buffet call the last housing bubble?

In the interview, which took place in May 2010, Buffett admits that, like most everyone else, he didn't see the financial crisis coming until it was too late...

...

Buffett concludes by saying he wish he had figured that out in 2005. Don't we all.

Hell, he's not even 100% correct on what caused it.