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Why Warren Buffett Said No to Lehman and AIG in 2008

2 326 483 views | 7 Sep. 2018

Warren Buffett’s

Warren Buffett’s Berkshire Hathaway is famous on Wall Street for having the cash to make deals happen, even during a crisis. But in 2008, he turned down both Lehman Brothers and AIG when they asked for help. In an interview with WSJ, he explains why.

Maher zain’s Fan

Bank : We need a loan and this is the application.
Mr. Buffet: Rejected.

Ali Qazilbash

A moment of silence for every other prospector...I am solid gold dumbasses

The XP Bandit

A very wise man.??

james Chocolate

One of the main reasons for the 08 world financial crisis

FinalFrontier

I didn't hear 'why' in the video

Yimmy Tjahjono

Enter 2020, Mr. Buffet is not getting any calls. The banks already have direct access to the US treasury.

MJ K

What is the background music on this ? It's epic

Shivang Raisurana

I like this man.. if he works hard, I think he can make it big

Nic Winston

Nothing in the media is presented rationally and objectively, everything is tainted with dramatic loud music and emotions. Not unlike the markets which oscillate between fear and greed. Maybe those big market movements are caused by an overly emotional media which makes investors panic?

Jose Carlos

if a bank asks you money there is something very wrong with that bank.

Jose S.A.

No matter how many degrees you have, last few seconds in this video is a lesson worth 1000 times more....Trust-Confidence.

Dave Thibodeau

Hugh bunch of Crooks Rapping the American People of there wealth
. All Crooks need to go to jail and

CabanaCaseda

Same reason people don’t buy houses on fire, doesn’t seem too complex

elghark

In shorts, no explanations in 5 mninutes, just a report of some calls missed and some financial data not understood.

Prince Onyedikachi

"Once they lose confidence, its all over"

Richard Suver

C

Green Comms

I don’t fax and don’t know how but if I need the kinda money they did I would have figured it out.

Luan Martins

Banco Brasil
Saldo Total:
R$ 14.988.555.745.426,95

SevenDeMagnus

So sad. Lehman, AIG was complacent and was counting on bail outs.

Dodge Man

Sadly, the taxpayers got shafted by the bankers and made billions in bonuses.......

J. W. Earth

This is sickening. Taxpayers lost everything, and then committed to pay these crooks more! They gave themselves bonuses with the money!!!!! I would like to see them arrested for fraud!

Tuan Nguyen

The amount of money I would pay to get a hold of the 10-K with all his notes on Lehman

A 1

Death penalty for Wall Street crooks.

Michael Davenport

Atta boy Warren!

Denis O'hAichir

Comes across as a decent man.

Michael Petty

This guy has been reaaaal quiet lately.
Does that tell you anything ?
I remember back in 2008. He was saying. Don’t worry. I have full faith and credit in America.
We will be ok.
But not now.
He’s real quiet. Why ?

Jinwoo Park-Nantier

background music : https://www.apmmusic.com/albums/KOS-0564

Marcos Castro

I dint know that banks Barrow from the rich people.

marryson123

4:53 Well said for Robinhood.

Nima Scolari

Buffet made his billions by being opportunistic and a predator. He's literally stood aside watched companies collapse so he could sweep in and pick up their pieces making billions more. Of course he'd reject proposals for bailouts.

loh ty

Bgc bg z

And M

Coz he could have made more money. When whole economy was collapsed, it was his party time.

Pete

If it had been like today, Lehman and AIG wouldn't have had to turn to Buffett for money. They could simply issue junk bonds and the FED would buy them, no questions asked. Very questionable for the health of the economy, AND killing the possibility of deals for Mr. Buffett that made him so much money in the past. Wonder what he thinks about this.

Christopher O'shea

Warren buffet is an old fashioned billionaire
They don't make power and ethics like this, he is rare for a reason

I Will Become a Millionaire

It's interesting to see how his mind works.

chris

So... bitcoin?

shuro che ko

Did aig made 20 photo copies of their ids before sending the loan application?

ABHISEK DAS

Which music is that in background??

Sarfaraz Erahdun

If i ask Warren for $100 .. am i going to get it ?

Aditya Verma

its interesting that one of the biggest shareholders of the worlds biggest tech company does not know how to open a message.

Aditya Tanwar

I had viewed bankers as criminals and blamed them for leading the world to the crisis.
But now having studied Risk Management, I have developed pathos for them.
It is incredibly difficult to measure market risk and credit risk. I have done my Masters and Economics and I still find Risk Management a very complicated domain. Ofcourse bankers were responsible, but they merely did what their data and models told them to do. In a state of crisis, data behaves quite abnormally and it creates what Buffett referred to as ‘the domino effect’.
The Risk Management is all about gauging the tail risk, and how does one measure the tail risk when by definition the tail of the distribution contains the least amount of information and is very sensitive to underlying dynamics of Economy.

Ben Bernanke, the Ex Governor of Fed often receives blame for having failed at predicting the crisis. The man is an academic genius and has written pathbreaking research papers.

Clint Coin

Investing all my saving with Expert Mr Greg Campbell has been the best decision that I have taken, when I met him in germany at a conference i invested €20,000 into forex with his broker and made back €220,000 in 7day.

Prince Onyedikachi

He still has his "little flip phone"??? Who is this man?!!

Bryan Rodriguez

We bailed.them out and got screwed

Andrew Simpson

Buffet can I be the air to you throne

MrBeatboxmasta

When a big bank is going bankrupt, it means they behaved criminally and it caught up to them. Those in charge should have gone to prison.

gaw gaw

Berkshire lost 50 BILLION Dollars last Quarter .

廖斯賢

0:00

Michael Nguyen

Investing in forex now should be at the top of every wise individuals list especially during this recession

thomas aquinas

If you think that Wall Street, the Commerce Department and the world money system is pure economics and not personalities, you just don't know it all. There's personal pique, egos, and history involved. It's a pity, too, because the people at the very top have a way of smoothing almost anything over, and 2008 might've been a mere bump in the road and not Gotterdammerung as it developed. Of the firms standing vs. falling, the fallen ones either went too far on a limb and/or displeased too many people 'that mattered'.

Bestin James

is it just me or does this video really live upto it's title?

Kokosh Brza

I wonder what he's thinking about current gme situation, if he knows about it that is.

Cooper Bybee

Warren buffet would not, but Uncle Sam's nieces and nephews did.

Tihs Eht

Warren buffet, one of the very few actual investment bankers left in the world. All the others look for loopholes and quickest way to make quick cash, through scamming and lobbying, if every banker was like warren buffet the world would be a much different and better place. "I fear banks more then i fear standing armies" (figure it out)

廖斯賢

0:00 Fear is extraordinary contagious

Glentp75

Surely in a free market the weak die and the strong survive. Governments across the world bailed out the weak at the expense of the tax payer. When someone like Buffet does not see any hope in bailing them out, what makes governments think they know better?

earthstewardude

But what about the others that we bailed out? Remember "too big to fail?"

TheDark side

When Criminals are in big trouble they go back to their master's! That's what happened in 2008.

Jimbo Slice

Can’t fool ol Warren

Tom R

Lessons learned? Take more risk, get bailed out anyway by the taxpayer

ammm zeee

I just watch margin call (2011) and the big short (2015) movie. Mixed CDO and fraudulent agency rating, loose mortgage regulation, modified financial report and over reliance on fixed income stock/bond is to be blame. Very dirty and dark industry.

KunraVong

Did he say "With the 4"?

Tommy Sullivan

Include Bank of America which now spies on its citizens in America. Amazing.

Huong Phuoc

Omg.

andy phillips

Once you loose confidence...........it’s all over.

KSW7

Lehman and AIG exists
Warren Buffet : No

Seongmin Park

Funny how this video is also posted in 2018 around September.

warntheidiotmasses

The Masonic Lodge said no.

Friday’s are cool

Thoughts? Does it make sense to blame both parties for the crash; both being the banks that were irresponsible to give out bad loans and also the individual for taking a loan they can’t afford.

Dewaldt Fourie

I'm worried about you..

Robert enzo

The part at 2:30 where people are walking out with boxes was lifted from the enron documentary "Enron the Smartest Guys in the Room"

Pradyumna Madan

guys have a lok on harshad mehta

Tik Tik

there is a very big lesson here life mr Buffett said: for regular businesses, they sell products, for financial institutions, they sell confidence. Once confidence is gone, the financial institutions are worthless.

Always invest in businesses that create real products, never invest companies that create air.

TheDudeAbides

I've realised it's all about bravery and luck this money lark.

Phil Swaim

"No one has to do business with anyone"

Except when theyre like the only business in town or the only place that sells the thing you need. Theres like only 3 or so internet providers in america. 3 cellular systems. 2 major cloud providors. 1 enterprise desktop operating system (yeah you could try linux but good luck). 2 enterprise server oses.

Amazon. Walmart. Many of these places are so big and have consolidated so many other companies and even markets into them that theres practically no choice on who to do business with.

Pro TCS

He doesn’t know how to open massages on phone but knows how to make billions

Will Schneider

Lol

sunny wigan

Easy understanding video, I never believe I could make it from the comfort of my home trading bitcoin, with the help of Mr Carlton Jefferson, I now own 7btc on my wallet, his teaching techniques is wonderful

phil durre

those bankers should have been put in front of a wall...

Daniel Leonard

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Purple Strike

Cool

Alessandra Gomes

Oi

Oki Doki Yow Yow

If he is tech-smart, he will buy tech stocks.

Divik Nigam

Does anyone know the orchestral music that's playing in the background?

777jones

I can’t believe what a baller Mr Buffet was, reading Lehman’s financial report, rich enough to buy them and just saying no. He is an American treasure.

Kevin McCallister

Warren Buffett was social distancing before it was cool

Rajesh Upadhyay

I love to watch this interview always.....
This teaches us that never TRUST a SPECULATOR (GSMBLER) COMPANY IN STOCK MARKET

HOWEVER BIG it may be.....

Always take informed decision in life with proven track record.....

19--january--2021 Tuesday 15.03 pm

Mike Peters

Excellent video, this video setting is really very understandable. Imagine what the price of bitcoin would be next year. Now is the perfect time to invest

Imagine how the price of bitcoins is going up.
Investing in Bitcoin will be the wisest thing to do in 2020, especially at the current rate.

Nothing will prevent me from investing in bitcoin mining, in this period I see that the graph is making great strides.

The only guaranteed way to make a good profit from investing in bitcoin mining / trading is with the help of an expert, that's because I did it on my own but it didn't work. That is very true. Very true. When I started trading cryptocurrencies, I wasn't sure what I was doing until I started trading under professional guidance and trading experts.

I am completely new to bitcoin. How does it work? Any good and trustworthy professionals you can recommend?

Hello anyone who has a recommended Bitcoin trader please I am losing a lot, I also want to invest.

I would recommend investing with silas. Silas is an experienced cryptocurrency trader and trusted bitcoin miner. He guided me and my team through investing in the fxinvestmentoption.com company and it is paying off a lot.

Wow!! what a coincidence!! Do you know Mr. Silas too? I also invest with the coin sales company and it has been amazing. Silas is really making things easier for his investors ... Keep up the good works silas ❤️

Thanks for the recommendation, but how can we contact silas from the coin counter company to invest with our bitcoins? You can contact silas at [email protected]gmail.com for more information and necessary silas.

The positive comments are everything I've heard about silas for quite some time. I will send you an email now to invest what I have in Bitcoins

Hey, I also invest with fxinvestmentoption.com ... I didn't expect to make that much money with bitcoin before meeting silas at a conference in Peru. I am still in shock from what I earn from my bitcoin earnings.

How much investment do you suggest to start? Because it seems like he's been trading bitcoins for some time. Will $ 5000 be okay to start with?

Wow ... it's amazing, I have never seen such success before because I had heard so much from my friends about silas and now here. Time to see for myself ... I'll get in touch with him right away, thanks.

Hey, I also invest with fxinvestmentoption.com ... I didn't expect to make so much money with bitcoin before meeting silas at a conference in the Germany. I'm still in shock from what I win.

Matt is an expert in bitcoin trading. With his platform I earn more than $ 9200 per week. I met with him 2 months ago.

I have been investing my bitcoin with Coindesk for 4 months and it has been good for me too, since I was introduced, I earn 25% of my investment with a starter package.

Without a doubt, their strategy is 100% legitimate and no one has complained about their signals.

How much investment do you suggest to start? Because it seems like he's been trading bitcoins for some time.

I want to start with $ 2500 and see how far it goes. How can I contact him and how can I get started?
I need more information on how to start investing. Can anyone help with silas contact information?

Ashish Khanduri

He's simply saying I'm not dumb in nicest way...????

Artem Panfilov

This is how soft-evil looks like. Everyone knows how and where the financial system is broken and you just have to know how to abuse it in a way that no one will get you for it. It's that simple.
Money is confidence, not a value.

BC

A fax? Thought we were talking about the credit crunch in 2008 and not the stock market crash in 1987.

Martinez Ambrocio

The most successful people started from nothing. They didn’t wait for the opportunity to knock but created the opportunity on their own, worked hard and made history. Mr Dennis @Dennis__forex09 on Insta. is a legendary binary options trader. I will always recommend him for your trade?

We Cat

Fun fact: moody's is own by Warren Buffet and he's letting them to rate dogshit B,BB,BBB with very low fico score at AAA

hauntedmoodylady

Warren Buffett is a lowlife dirt bag. He once sat on national TV alongside the Muslim/marxist ossama/Obama and allowed Ossama/Obama to assert on National TV that Buffett's secretary paid more in income tax than than he the lying dirtbag Buffett did. Buffett's secretary is on his payroll, when she is paid she has Federal income tax withheld from her check to pay her Federal income tax, the amount of federal income tax she pays is a function of how much she is paid by the duplicitous, lying dirtbag Buffett. Buffett by contrast does pay Federal income tax, however, it is referred to as Federal capital gains tax from the profits on the sale of his stocks, and other financial assets. The difference being she works, and earns a paycheck as an employee of the lying dirtbag. Whereas, he is not on anyone's payroll. It's a (non -existent) distinction, without a difference. An example of one of the many lies told by Big Mike's boyfriend...

Corey doyle

My parents narly got screwed because of the crash

Gianni

and the goverment bailed them out.
dumb.

OGHUVWU BLESSING

JESUS CHRIST IS GOD.

Michael Tom

He was in on it

Javier Johnson

Well.... Aig was bailed out and made a profit

TheRbruin10

I still can't believe that the Federal government bailed AIG and other companies out for their mess. After that I never trusted federal government ever again till this day. NEVER TRUST IN GOVERNMENT.

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Wall Street Journal Archives Online

1 264 views | 5 Oct. 2009

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Wall Street Journal Archives Online.

These online archives are made easy to use due to the search option that helps users to find the exact news story or column according to the date or the subject. All the paid subscribers of the Wall Street Journal can access articles from daily editions of The Wall Street Journal and all the previous editions of the preceding 90 days. To learn more on the Wall Street Journal Online Archives, just follow the link now.

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New York Times and Wall Street Journal

92 views | 14 Apr. 2020