Buffett Warning: High Valuations – Economic Fallout…

Major economic contractions, when they hit, lead into financial turmoil for working Americans…

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Warren Buffett retires and sends $373 billion warning about US economy

By SADIE WHITELOCKS, US SENIOR REPORTER

DailyMail – Updated: 19:58 EST, 2 March 2026

Finance experts say the final moves of legendary investor Warren Buffett as chief executive of Berkshire Hathaway may be sending a warning about the US economy.

In recent quarters, Buffett and his investment deputies, Ted Weschler and Todd Combs, consistently sold more stocks than they bought….

As a result, Berkshire has built up a huge cash position of around $373 billion after 13 straight quarters of net stock sales…. he argues that when valuations are this high, history suggests the market could be vulnerable. 

In past periods with similarly high valuations, the S&P 500 has gone on to fall by as much as 30 percent over the following three years.

A drop of that size would not just affect Wall Street – it could ripple through the wider economy. 

Finance experts say the final moves of legendary investor Warren Buffett as chief executive of Berkshire Hathaway could be sending a warning about the US economy

When stock prices fall sharply, retirement accounts and investment portfolios lose value. 

This often leads households to cut back on spending, a phenomenon known as the ‘wealth effect.’ Because consumer spending makes up the bulk of US economic activity, that pullback can slow overall growth.

Falling markets can also hurt business confidence. Companies may delay hiring or expansion plans if share prices drop and financial conditions tighten. 

If borrowing becomes more difficult and unemployment starts to rise, the risk of a recession increases, although a market decline does not on its own cause one….

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The Great Financial Crisis of 2008-2010 was precipitated by major U.S. and foreign banks gorging on subprime debt, rate-shopping the paper they were bundling, and then plummeting below their capital requirements when the housing market went bust.

The Federal Reserve promptly bailed out these multi-national banking behemoths through various credit facilities. None of the principals associated with these TBTF institutions had to take a ‘hair cut.’

Millions of American families, however, did…

It was an absolute economic disaster for Main Street America:
8.7 million jobs lost;
10.1% unemployment;
10 million home foreclosures (2006-2014);
1.8 million small business foreclosures.

Now is the perfect time to get working American families substantially out of debt… and help get Main Street America properly and effectively insulated from the next financial crisis.

There is precisely one economic acceleration plan currently on the table with the raw power to protect the interest of millions of U.S. citizens and get America back on track.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$95,000 per U.S. citizen – Leviticus 25 Plan 2027 (46768 downloads )

National Debt: $38.5 Trillion. Climbing $8 Billion per Day. Skyrocketing Deficits Forecast.

‘The bill is coming due”….and Main Street America Republicans have the plan to pay for it. In full.

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America has a very expensive promises problem — and the bill is coming due

Unless America changes expectations or sacrifices are made on both sides of the aisle, the debt clock keeps running

By Ted Jenkin Fox News | Published February 24, 2026

Excerpts:

… [T]he U.S. Debt Clock keeps spinning like a Vegas slot machine that only pays out in red ink.

As of 2026, the United States owes roughly $38.5 trillion, and it’s climbing about $8 billion per day. The net interest payments on the debt officially exceed our annual defense budget….

The Congressional Budget Office estimates current policy paths keep deficits near $2 trillion annually and push debt to about 120% of GDP within a decade

Here’s the translation. Even if the economy hums at an insane rate of GDP growth, the government is still spending dramatically more than it collects. Why is it that nobody really understands revenue and expenses in Washington, D.C., and that 85% of our revenue comes from the two buckets of personal income tax and payroll tax?

The Real Problem Isn’t Taxes or Tariffs….

It’s interest. Lots and lots of interest. Interest on the debt alone is projected to exceed $1 trillion in 2026 and now roughly 14% of federal spending….. 

It’s like playing credit card roulette and the interest just keeps compounding with no end in sight. No State of the Union message Republican or Democrat can outgrow a compounding interest bill this large.

Politicians Don’t Like To Campaign On Math
Last fiscal year:
Government spent: $7.01 trillion
Government collected: $5.23 trillion
Annual deficit: $1.78 trillion

To erase the deficit overnight, you would need one of the following:

  • Raise taxes roughly 35% (think about top tax rates going from 37% to 50%) and remember almost half the people in America don’t pay federal taxes whatsoever.
  • Cut benefits massively, which really means one of the big three: Medicare, Social Security or Defense.
  • Or grow the economy at wartime levels for a decade.

Do any of those sound realistic to you?…

The Real State Of The Union

The federal debt isn’t going to be eliminated.

It will be inflated away, written off, monetized, or slowly eroded by negative real interest rates because, mathematically, a $38.5 trillion balance sheet cannot be balanced with incremental policy tweaks. The U.S. doesn’t default. It dilutes.

Presidents don’t control the deficit anymore. Trump can change tax policy. He already did it. Congress can try to change spending. But they rarely agree. But reality is reality…

Unless America changes expectations or sacrifices are made on both sides of the aisle, the debt clock keeps running no matter whose name is on the Oval Office door. The debate in Washington is ideological. The risk to all of us is our standing to wear the crown of being the world’s currency.

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Main Street America Republicans present the most powerful economic acceleration plan in the world: The Leviticus 25 Plan.

  • Immediate $37.303 billion federal budget surpluses annually 2027-2031; self-financed over the succeeding 10-15 years.
  • Immediate, massive budget gains for state and local governments;
  • Immediate, massive debt elimination and restored financial security for millions of hard-working, tax-paying American families;
  • Lower interest rates across the curve, credit market stability;
  • Citizen-centered health care;
  • Revitalized, long-term economic growth.

The Leviticus 25 Plan is a dynamic economic initiative providing direct liquidity benefits for American families, while at the same time scaling back the role of government in managing and controlling the affairs of citizens.  It is a comprehensive plan with long-term economic and social benefits for citizens and government.

The inspiration for this plan is based upon Biblical principles set forth in the Book of Leviticus, principles tendering direct economic liberties to the people.

The Leviticus 25 Plan – An Economic Acceleration Plan for America

$95,000 per U.S. citizen – Leviticus 25 Plan 2027 (46765 downloads )