Published by FOX Business | May 1, 2023
Berkshire's Charlie Munger issues warning for U.S. commercial property market
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.”
“In the good times you get into bad habits. When bad times come they lose too much,” the Berkshire Hathaway executive added as the First Republic Bank saga aired on television behind him, the Financial Times reported.
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.