[The U.S. Treasury] can borrow basically unlimited…
![“[The U.S. Treasury] can borrow basically unlimited amounts. They can stay there for years and years. These assets will be worth more money over time. So when Merrill Lynch sells a bunch of mortgage-related assets at 22 cents on the dollar like they did a month or so ago, the buyer goes - is going…” quote by Warren Buffett](https://sms4smile.com/q/img-quotes/a2a/warren-buffett-183_amount_the-u-s-treasury-can-borrow-basically-un_2051464.jpg)
“[The U.S. Treasury] can borrow basically unlimited amounts. They can stay there for years and years. These assets will be worth more money over time. So when Merrill Lynch sells a bunch of mortgage-related assets at 22 cents on the dollar like they did a month or so ago, the buyer goes - is going to make money, and he's going to make a lot more money if it happens to be an institution like the U.S. government which has very, very cheap borrowing costs.”
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Government borrowing cheapness can profit institutions buying distressed assets.
In simple terms: Cheap borrowing lets governments profit from distressed assets.
Key Takeaway
Leverage low-cost debt for strategic investments.
Themes
finance
investment
government policy
Mood
cautious
pragmatic
Type
financial
strategic
When to use this quote
- banking
- real estate
- public finance
Key Concepts
borrowing costs
distressed assets
profit strategy
Questions to Reflect On
- What risks accompany cheap borrowing?
- How to assess true asset value?
A Different Perspective
Assumes stable asset values; market volatility can erode returns.