The banks took in the government money... and of course instead of risky lending with low returns, they chose to do what Buffet himself has been recommending, and used the money to buy American stock.
He was so keen on Treasury buying distressed mortages... and they just announced that they've given up on doing that.
Buffet said that the problem was caused by property bubble... and America is trying to stop the bubble bursting.
Buffet pointed out that overlending was a problem. Now they're trying to INCREASE lending.
Buffet must be upset...
ReplyDeleteThe banks took in the government money... and of course instead of risky lending with low returns, they chose to do what Buffet himself has been recommending, and used the money to buy American stock.
He was so keen on Treasury buying distressed mortages... and they just announced that they've given up on doing that.
Buffet said that the problem was caused by property bubble... and America is trying to stop the bubble bursting.
Buffet pointed out that overlending was a problem. Now they're trying to INCREASE lending.
...
This is not looking good!