Warren Buffett: The Depression Will Be 3x Worse Than A Housing Crash

A recession, a depression, an economic collapse—call it what you want. On YouTube, there are tons of videos warning about an upcoming financial disaster in the United States. Many of these videos are just clickbait to get views. But underneath the surface, beyond the flashy thumbnails, there's a simple truth: as we head into 2024, we still don't fully grasp the implications and possibilities. What happens this year could either lead to the greatest comeback in history or mark the beginning of a downturn as bad as our worst economic nightmares.

[ryanwilliams]

I’m in Ohio and the housing market here over the last 7-8 years is unlike anything I’ve ever seen. Homes that were bought for $130K in 2015 are now being sold for $590k. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quite mediocre neighborhoods. Then you’ve got Better, average sized homes in nicer neighborhoods that were $300K+ 10 years ago selling for $750k+ now. Wild times.

[Riggsnic_co]

I think a housing crash will happen because all those people who bought homes over asking price, although it was at a low interest rate, they are over their heads. They have no equity if the housing prices continue to go down, and if for whatever reason they cannot afford the house anymore and it goes into foreclosure because even if they try to sell, they will not make any money. I think this will happen to a lot of people especially with the massive layoff predicted for the future and the cost of living rising at a high speed.

[avenger]

This never bet against America made more sense when we actually produced things. We had people coming out of school well educated and ready to start businesses. Kids these days leave high school and can't even read. Our debt to GDP is beyond the point of danger. We outsource all our production overseas. We have declining values, and immense social division. We also have a country that relies completely on debt, and our "growth" is built on expanding that debt, not by producing more.

This invincibility of the American spirit crap is an illusion of past successes. Half our country barely affords food and rent. And forget about buying homes. Every market from stocks to housing is a ponzi scheme or meme stock that has lost sense of fundamentals. And it's all paid for by a Federal Reserve that reaches into the savings of anyone who tries to be responsible, and steals their hard earned purchasing power via inflation to use to prop up inflated asset values, to bail out banks, and to buy all the worthless treasuries issued by our government so they can go on a never ending buying binge on God knows what pointless crap they can find. We have no borders anymore, and import swaths of new dependents for our over stretched welfare system. I could go on.

This country is broke, and we only get by on having the world reserve currency which gives us the privilege of exporting our inflation all around the world. But this American ingenuity and innovation, the pull yourself up by your bootstraps mentality, and the reward for all that hard work that would make it all worth while, it's simply not there anymore. We're a country of gimmicks and schemes now, stock buybacks fueled by cheap debt, and the greater fool theory. Eventually, it's all going to catch up with us. The bill always comes due in time no matter how hard you wave that flag.

[TrustNot]

"There's a class war going on between the wealthy class - my class - and the common people....and my class is winning." - Warren Buffett.

[austinbar]

This whole financial crisis and the Great Recession posed the most significant macroeconomic challenges for the United States in a half-century, leaving behind high unemployment and below-target inflation and calling for highly accommodative monetary policies. And this is only the beginning! In light of the ongoing global economic crisis, it is crucial for everyone to prioritize investing in diverse sources of income that are not reliant on the government. This includes exploring opportunities in stocks, gold, silver, and digital currencies. Despite the challenging economic situation, it remains a favorable time to consider these investments.

[lisaprater]

I am a realtor, and I agree with you. I noticed June 2022 when buyer calls started slowing down. I have seen this recession happening in real time. We are right where you talking about. Everything is not ok.

[onceANexile]

THE AMERICAN PEOPLE HAVE NO IDEA WHAT USA HAS INSTORE FOR THEM....

[jayclarke]

Warren Buffet:....2.0? Is he predicting a second 30s era depression because I didn't see him say anything even close in the video! Click bait!

[FatherGoz]

I work in insurance and we did way less quotes on new homes purchased in 2023 compared to any other year. And we're in a semi hot market.

[sheisLD]

We're definitely on the verge of something worse than the GFC.

[pleskbruce]

Ok, you make some good points here for sure. In all fairness to the audience, though, you've made the point by resurrecting a 3+ year old conference with Warren Buffett and coupled it with a headline that makes it appear to be a current event that he is predicting a depression when that is not even what he was saying then nor is your assertion today. So to that end, I call "click bait."

Having said that, you correctly point out that a good chunk of the American population has never seen a downturn which probably explains the high level of entitlement many display today.

[JosephMcEntee]

Every crash/collapse brings with it an equivalent market chance if you are early informed and equipped, I've seen folks amass up to $1m amid crisis, and even pull it off easily in a favorable economy. Unequivocally, the bubble/collapse is getting somebody somewhere rich

[no-mzie]

Were on borrowed time. Were actually in it. Its all built on debt.

[RusuSilva]

I've been watching the housing market closely, Prices have been skyrocketing for years. It's going to be tough for first-time buyers to enter the market." how can one diversify $280k reserve .

[doghouse]

I think i know even less after watching this video

[michaelwillis]

I don't quite know how this was related to "The Depression Will Be 3x Worse Than A Housing Crash" as I didn't hear much on that topic.

[jzilla]

Listening to Warren Buffett’s voice is like stabbing my ears with needles 💀

[I-DIG-IT-CT]

I dont agree with the premise Warren is putting forward. The inputs are all different. The risk this time isn't a stock crash in nominal terms, but in real terms. The risk is hyperinflation. The RISK is the insolvency in the banks, the out of control spending, the loss of the peto dollar to emerging BRICS nations. This will have more in common with Weimar Germany than the 1929 US stock market crash.

[rebelliousrev.]

Great videos, informative, good time frame. You’re really hitting your stride sir, keep it up!

[DBGODIIIVIII]

However, crashes are not always deflationary. Back in the 1930s, we had a free market; now, the market is heavily manipulated. With all the debt and money printing, we are in the midst of an inflationary crash. Just because the stock market is going up doesn't mean the economy is doing well. Look at the stock markets in Venezuela, Argentina, or Turkey — they all rallied significantly more than the S&P 500 and the Dow Jones Industrial Average.