To Warren Buffet the rescue of the investment bank Bear-Stearns was the right decision. The U.S. Federal Reserve injected to that financial institution millions of dollars to contain the financial crisis. However, the world’s richest man says the problem is banks are to blame and who should not throw it to anyone else. Jim is open to suggestions. ” The employer of 78 years believes that the blunders of U.S. investment banks will lead to stricter financial regulation and more regulated in the future.
It also talks about tax cuts for the very wealthy, “My employees pay 33% of their income and I, without consultants or planning or tax havens, limiting myself to do what Congress gives, 17%.” This trend is sweeping the world. In recent years, the profits of big companies have increased by 70%, while real wages of workers have fallen by 4%. The images that left some years ago Hurricane Katrina reflect injustice distribution, even in some rich countries to embrace the liberal causes but not applicable in times of crisis to keep their profits. In Spain, speculators require the government to rescue them in times of crisis, sometimes with the argument that it lost hundreds of thousands of jobs if they do not. This has been done many real estate now in bankruptcy. But the responsibility lies more with the governments lax policies have kept with the banks, which financed almost entirely residential, without knowing what they were buying, but knowing that many people were insolvent. The benefits lasted lasted so with the complicity of the estate who saw their pockets grow.