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As the most reliable and balanced news aggregation service on the internet, DML News App offers the following information published by FOXBUSINESS.COM:
Berkshire Hathaway Vice-Chair Charlie Munger said Monday that a storm is brewing in the U.S. commercial property market.
As property prices fall, Munger said American banks are “full of bad loans.”
“It’s not nearly as bad as it was in 2008,” he told the Financial Times. “But trouble happens to banking just like trouble happens everywhere else.”
He continued to say, “In the good times you get into bad habits. When bad times come they lose too much.”
Berkshire Hathaway has supported other troubled U.S. banks, giving $5 billion to Goldman Sachs in 2008 during the economic recession and a similar total to Bank of America in 2011.
Munger also noted that banks were already pulling back from lending to commercial developers.
“Every bank in the country is way tighter on real estate loans today than they were six months ago,” he explained. “They all seem to be too much trouble.”
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