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-- -- general warns of the risk involved in the Fed raising interest rates and Warren Buffett is being a selective when purchasing financial stocks Dillon -- -- Need to be worried Fox Business senior correspondent Charlie Gasparino.
Joins us with more -- -- -- -- right.
-- Jamie said a couple things that are really interesting to watch every word coming out of the Fed.
It's going to be scary when they stop that they're gonna stop and Buffett being selective -- -- I don't give investment advice I'm telling every retail investor.
He'd gotten you got to watch being in this market -- -- -- three Hamas if it's crazy scary.
I believe that the Fed keeps -- the money we go to doubts when he there's not a -- -- investor I know that thinks they will.
This is something that everybody that it's probably the biggest story today when Jamie Dimon the head of the biggest bank goes out and makes a statement like that.
You average investor have to put it on par with Ben Bernanke to some extent -- you -- what Jamie -- does as running the biggest bank he sees all the money flows.
He may not have such granular detail but he sees for example.
The the London -- -- trading fiasco but so don't need you got to come a little slack with that I believe but he sees global money flows coming in and out of that bank.
He has it gives a perch because he's on I believe he's on the -- on the board of the Federal Reserve.
When a guy like they're actually just an -- has turned defendant but had been for a long time.
At and now like it was January did you OK but he had been for a long time ago you know and he's plugged in that we after the New York -- -- -- them every day.
When a guy like that starts telling you it's scary.
This comment we we should keep this is a -- I think this is the -- story today it's not the exact reason why stocks are off a little bit or we had.
We had a higher open and -- they sort of points but it's one of the reasons and cartwright you know what he said was that we're going to go back to a normal interest -- environment.
-- that that's good and we and things won't harm right to get long term -- that transition to get there right is going to be volatile and scary now what does he mean exactly by that we have two concurrent bubbles going on right now.
We have a bubble in the stock market.
-- 151000 plus -- start to come down a little bit while we have Mobil's stock market was when the Fed buys bonds.
It lowers interest rates right they go in the opposite direction bonds and sophisticated investor -- We're gonna buy stocks could get better you get a better play than bonds -- more you get a better return a -- maybe get a dividend rate.
But he is a conversely even as they were -- months.
Less sophisticated money average investors everything get it as sophisticated that it has a buy stocks less sophisticated investors for some reason kept -- bonds.
And we have true bubbles.
Bulk of those bubbles are gonna pop at some point well I guess that starts raising rates and that's where it gets scary.
That's what you don't know I mean here's another syrup maybe the bond buyers buy the stocks right maybe the stock market doesn't -- much.
But I will tell -- this the Smart money saying they both get crushed into people -- what's going on.
And the question is how long it is the crush you know is this is this market gonna puke that's typical.
A market that -- -- -- that I -- now I know just as much when he's -- Intel's gross -- Charlie got sprint has any articulating -- -- we're giving you what's.
On the floor they didn't -- you look a puke I'm sorry I'm -- my eyes as we speak we're seeing huge fluctuations.
In the dollar yen yen fell out of -- as some of the traders and say we saw interest rates back down.
Too close to 2% on the -- -- so we've got a selloff that isn't nearly as bad as it was just you know twenty minutes ago so we see you -- gyrations lease costs spike in -- vick's.
The fear gauge so all of those mechanisms are starting to happen but I don't know I would -- so pars to call it a puke.
No no the yet it's a few days and Connolly what's the what's the breaking well between the maximum velocity what was the -- -- -- yesterday Melissa that that would that would have forgot to return and I I like -- -- -- -- economy.
I kind of -- diamond has a right to puke is wanna.
And Ben Bernanke doesn't just hinted that he's gonna lower rates at some point is like win.
They -- they see something definitive about how they're gonna cut back the bond purchases of why do you what -- rates what -- race for the white.
This is the Fed.
Yet this is now this is the Fed messenger in the market and the market reacting -- we -- a 200 I don't know I can't get -- -- a point down day yesterday everybody is citing this.
We -- a fed governor that Peter Barnes interviewed.
Who essentially said the same thing we have Warren -- out on the campaign warning people to write a point that we Warren Buffett saying we're selectively buying banks was -- -- He's buying banks are less interest rates to sensitive Brady's mind more diversified banks and buying global banks is what she's big banks like JPMorgan.
Which he believes are diversified into trading that could cover up some of the yeah credit losses.
So I mean some -- this is kind of complicated but I think.
You know it's kind of for the average guy I think you just what watch exactly when the Fed's gonna do.
And you know it you don't have to pick the bottom.
-- the top but you do have to get out apparently that is -- -- -- -- key because this thing is going to be.
It's going to be Q beyond belief -- or could be if you be ugly.
-- -- traffic some.
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