Savers suffering 'brutal erosion' of their money
The veteran investor Warren Buffett has warned that savers and bondholders are suffering a "brutal" erosion of their money as the US Federal Reserve and other central banks force yields to historic lows.
"I feel sorry for people that have clung to fixed-dollar investments," he told investors at Berkshire Hathaway's annual meeting in Nebraska.
Mr Buffett, right, defended the emergency stimulus of Ben Bernanke, the Fed chairman, saying the "consequences would have been terrible" if the authorities had failed to act, but said those nearing pension age had paid the price.
"Bernanke had tough choices to make; he decided to step on the gas pedal and he's still got his foot on the pedal, and that really does hurt savers," he said. (© Daily Telegraph, London)