The Treasury Bond Bubble

Warren Buffett’s huge stock losses are the big news of the past week… and Berkshire Hathaway shares are near their 2003 levels.

But the big, actionable idea from Buffett’s latest shareholder letter is his take on the Treasury bond bubble. The value legend believes the government’s boondoggle stimulus efforts will stoke inflation and pop the giant bond bubble. He puts the current bubble on par with the Nasdaq crash and the housing crash.

As Reuters featured: “When the financial history of this decade is written, it will surely speak of the Internet bubble of the late 1990s and the housing bubble of the early 2000s,” he went on. “But the U.S. Treasury bond bubble of late 2008 may be regarded as almost equally extraordinary.”