Buffett Disagreed With Icahn'S Warning That Negative Interest Rates Were A Problem.

Carl Icahn, a billionaire activist investor, has made predictions for the "final judgment day" in the financial market. But Warren Buffett, a billionaire investor, believes that investors should not regard this view as a truth in. Karl Icahn,

Buffett also said he had not foreseen the negative interest rate, nor did he know where the policy of the central bank would bring the global economy and the market.

Carle, Icahn, recently expressed his opposition to the view of financial markets facing "judgment day". He pointed out that every day there was a large number of investors in the market. "I will not pick anyone out to pay too much attention to their investment behavior."

Buffett said, "if you look at Adams's book, look at Keynes's book, and look at anyone's book, you can't find any book that has written about the zero interest rate for a long time. It's a miracle. No one has ever imagined this happen."

Critics believe that negative interest rates or near

Damage the interests of depositors.

Debt king Bill Grosse sees this policy as a great threat to capital itself.

But Buffett responded with a more philosophical stance.

As for the negative interest rate policy adopted by the European Central Bank and the Bank of Japan, Buffett believes that this does not represent "the end of the world".

But he admits that such a policy is an "unexplored area", and he says he hopes to "live to find out" what the final outcome will be. Buffett is optimistic about the global economic situation for a long time.

"Interest rate

The effect is like the effect of gravitation on objects.

He said.

"If interest rates are zero, and you know that this situation will continue, then it is time to sell shares at a price earnings ratio of 100 times or 200 times."

Buffett admitted that interest rates remained at a very low level for a longer time than most people expected, which played a role in pushing investors into the stock market because of the lack of opportunities to gain income in other markets.

"When interest rates reached 15% a few years ago (early 80s of last century), you know that this has a very strong pull for all assets.

It's not just about stocks.

When interest rates are zero, the way you choose and the interest rate is 15% will be very different. "

On another issue, Buffett has the same view as Icahn. Two people all agree that congressional Republican members' fascination with us national debt is a "dislocation".

Data show that in February this year, more than 7 trillion dollars of government bond yields were negative.

"The proportion of state debt in total GDP is only slightly higher than I want, but the main problem is not to make it rise rapidly."

"The debt to GDP ratio in some countries is higher than ours, and the situation in the United States is not dangerous today."

He continued.

"It is meaningful to assess debt only when it is linked to the ability to generate income in the future, and those who have the ability to generate income never stop growing."