. August 26, 2008 SouthAmerica: Last Friday, August 22, 2008 I was watching Warren Buffett being interviewed on CNBC television program â they had Mr. Buffett for 3 hours answering all kinds of questions about the US economy, the US stock market, banks and investment banks, and about financial institutions such as Fannie & Freddie. I was surprised by one thing that Mr. Buffett said on that program â he was discussing Fannie and Freddie, and the massive mess in the financial markets including the problems affecting the large US banks, and other financial institutions operating in Wall Street. What surprised me the most is what he said about the major US banks, investment banks, and other major financial institutions that got into trouble because of the sub-prime massive mess - they had to take big losses and became undercapitalized â then they went around the world asking Foreign Sovereign Wealth Funds to invest on these institutions. Why they had to ask the money to these foreign sources of funds? Because they are not as sophisticated as many of the sources of funds in the United States. He said that there is plenty of money available in the United States but not to invest on these institutions â the smart money in the US were not willing to invest on these institutions and left them no option other than go after the money available from the Sovereign Wealth Funds. The Chinese are taking a beating on their Fannie and Freddie investments, never mind the investment that China made in the Blackstone Group just a little over a year ago. Citi Group and other major Wall Street institutions have taken many Sovereign Wealth Funds to the cleaners in the last few years, and I donât know if these foreign sources of funds have learned their lesson as yet. The good news for Wall Street is that the world is full of gullible and foolish people who are willing to keep sending their savings to be wasted in the United States. I can see banks such as Citi Group and other Wall Street financial institutions pitching their investment rationale to the Sovereign Wealth Funds â please send a few billions dollars to be invested on our bank or financial institution â and as soon the money arrives we are going to write it off as a loss regarding the sub-prime massive mess â we want to thank you in advance for your charitable contribution. .