Barack Obama and the Socialist USA vs. Warren Buffett and the Private Free Market

Posted on March 22, 2010 by admin

barack-obama-warren-buffett

Barack Obama and the Socialist USA vs. Warren Buffett and the Private Free Market

If you had $10,000,000,000 and you were going to loan it out with a 4% return, who would you want to lend your money to - Barack Obama and the Socialist USA or Warren Buffett and the Private Free Market?

Many banking firms would much rather loan their money to Warren Buffett. Why? The answer is simple. They believe Warren Buffet is a better risk on their return than Barack Obama.

Listen to some of these quotes from banking firms:

“Those economies have been caught in a crisis while they are highly leveraged,” said Pierre Cailleteau, the managing director of sovereign risk at Moody’s in London. “They have to make the required adjustment to stabilize markets without choking off growth.”

“It’s a manifestation of this avalanche, this growth in U.S. Treasury supply which is under way and continues for the foreseeable future, and the comparative scarcity of high-quality credit,” Doug Malvey.

There’s “a lack of a long-term plan to deal with the federal budget deficit,” said Gary Pollack, who helps oversee $12 billion as head of fixed-income trading at Deutsche Bank AG’s Private Wealth Management unit in New York. “At some point in time the market may lose its patience.”

“As the balance sheet of corporate America continues to improve and the balance sheet of the government deteriorates, that spread should narrow,” said Thomas Girard, a senior money manager who helps invest $115 billion at the New York-based insurer. “There is some sort of breaking point. The federal government can’t keep expanding its borrowing without having to incur some costs.”

If bankers are nervous about loaning to the United States, what would YOU do if you were to give the “yes” or “no” to approve a loan?

As America continues its downward spiral into deeper and deeper debt traps, it’s going to get more and more nerve-wracking in the credit markets. Understand that at some point, the pendulum is going to swing…. and it’s not going to swing back.

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