Warren Buffett, the billionaire investor and head of Berkshire Hathaway, called out politicians who want to prevent the lifting of the debt ceiling as 'pretty damn dumb'. He views that a prolonged political standoff on the matter as a 'disturbing' occurrence.
During an interview that was aired on CNBC last Friday, Buffett said, "The market is not going to fall apart." He said that this is needed because markets will only 'expect politicians to act irrationally for a certain length of time.'
A debt standoff, according to Buffett would be 'disturbing.'
Some Republican legislators are asking for concessions, including defunding Obama's signature health care proposal to allow for the lifting of the debt ceiling. This is an instance where US politicians look towards for an extended standoff over the raising of the US debt ceiling to allow the federal government to continue borrowing money to pay for its bills. It is expected that the contending parties would butt heads again on the matter later this year. A similar impasse back in 2011 resulted in the Standard and Poor's downgrade of the US credit rating from its triple A credit ratings.
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