Warren Buffett says he took all his money out of investments in European sovereigns over a year ago, and he probably won’t reinvest anytime soon.
At the end of the day, he says, EU leaders need to restore market confidence to lure investors back.
But there’s a problem. In the U.S., when we had our crisis, leaders were able to credibly guarantee that everything would be backstopped and held together. Hank Paulson, Bernanke, et. al. made a promise that they could stick with.
In Europe? There’s no way to guarantee that, because you have so many cooks in the kitchen, none of whom can really promise anything.
Watch him talk about the euro crisis, and why he’s sceptical that EU leaders will be able to find a quick way out: