Warren Buffer sees US bailout as a great investment
Just as the Bush administration were looking to the skies for inspiration, and help, in pushing through their US bailout plan, up steps Warren Buffet to the mark. While there are obvious risks to the scheme, which will see $700 billion of US tax payer's money at stake, Buffett believes that this is literally the chance of a life time and the US government could make a substantial return on their investment if they manage it carefully.
While many of the assets which will be taken out of the system have suffered massive falls of late, there is the potential to save them from further collapse if the plan to inject more confidence and finance into the system is successful. However, as with all plans of this nature and this size there is the potential for the financial industry to abuse the offer on the table - this is perhaps the greatest risk of failure.
As the Bush administration battle to push the scheme through Congress there are grave concerns that the longer the delay the worse the situation will become. Stock markets around the world were ecstatic when the scheme was announced but as each day goes by concerns are growing.
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