Part II

Buffett's move was interpreted by the market as a concern about the potential risks of the US banking industry. As a recognized investment master on Wall Street, every move of Buffett has attracted much attention. His choice to sell off US bank stocks on a large scale at this time point has undoubtedly sounded the alarm for the US financial industry. If there is really a problem in the US banking industry, it will further aggravate the US debt crisis and form a vicious circle.

It is worth noting that the United States is not the only developed country facing debt difficulties. While the scale of US debt continues to rise, the British government declared "bankruptcy" on July 28, 2023. The British Prime Minister's Office said that the country is "bankrupt and fragmented", and the new Chancellor of the Exchequer announced a substantial cut in public spending to fill the fiscal gap of 22 billion pounds. This incident undoubtedly sounded the alarm for the United States. If effective measures are not taken in time to control debt growth, the United States may follow in the footsteps of the United Kingdom.

The US debt crisis has reached a point that cannot be ignored. The debt scale of 35 trillion US dollars is not only an astonishing figure, but also a sword of Damocles hanging over the head of the US economy. Buffett's move to sell Bank of America shares adds uncertainty to this potential economic storm.

This article comes from the Financial Times