What are 10 most important words spoken in history of economics? Warren Buffet's answer will shock you. Details here
economics were uttered by former US President George W Bush at the peak of the economic crisis in 2008. Bush said: “If money isn’t loosened up, this sucker could go down!” Participating in an interview with billionaire Dan Gilbert at the Detroit Homecoming event at the College for Creative Studies in 2014, Buffet said that what the president said were “the 10 most important words in the history of economics.”
Warren Buffet: U.S. Money Market in jeopardy
Elaborating on what he meant, the billionaire tycoon said that it was the time when the global economy had caused panic, throwing the U.S. money market funds in jeopardy. It may be noted that money market funds are mutual funds that invest in highly liquid, near-term instruments such as U.S. Treasuries. They are insured by the Federal Deposit Insurance Corporation. So, people put their money into safekeeping, but when the sense of security came under threat, people got panicked.
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Buffet: Investors were worried
Buffett said in the interview that 35 million American investors at the start of September 2008 thought $3.5 trillion of their money was safe in money market funds. But they got worried in just one week.
Buffet: Bush's statement saved the US Economy
The hedge fund tycoon said that in this critical moment, Bush’s words were a signal to Secretary of the Treasury Hank Paulson along with Federal Reserve Chair Ben Bernanke that all options to secure the money market
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