Its not nearly as bad as it was in 2008, Warren Buffetts right-hand man told the Financial Times in an interview published Sunday. But trouble happens to banking just like trouble happens everywhere else. In the good times you get into bad habitsWhen bad times come they lose too much.

Berkshire Hathaway in the past has backed banks in tough times, investing about $5 billion in both Goldman Sachs and Bank of America in the 2007-08 crisis and 2011, respectively. But now, with a handful of bank failures being followed by possible commercial property crash, Berkshire Hathaway isnt getting involved. One major concern is risk stemming from commercial property loans in bank portfolios.

The shift to remote work has hammered commercial real estate, leading to rising vacancy rates and falling property values.

A lot of real estate isnt so good any more, Munger said. We have a lot of troubled office buildings, a lot of troubled shopping centres, a lot of troubled other properties. Theres a lot of agony out there.

Banks today, he noted, are hesitant to loan to commercial developers. Every bank in the country is way tighter on real estate loans today than they were six months ago, he told the British paper. They all seem [to be] too much trouble.

Last month, Tesla CEO Elon Musk tweeted that of all the economys looming threats, the state of the commercial real estate debt market is by far the most serious.

Munger acknowledged Berkshire Hathaways past success with bank investments. But he also referred to lessons learned. Weve had some disappointment in banks, too. Its not that damned easy to run a bank intelligently, there are a lot of temptations to do the wrong thing.

His comments come ahead of Berkshire Hathaways annual meeting in Omaha next Saturday.

Thats according to Geoff Kendrick, Standard Chartereds head of digital assets research. He told Insider this week that a U.S. defaultwhich he called a low-probability, high-impact eventcould cause Bitcoin to jump by about $20,000, an increase of nearly 70% from current levels.

Bitcoin started the year at well below $17,000 but is now hovering near $30,000. Thats still well off its all-time high of nearly $69,000 in November 2021, and some investors who bought Bitcoin around then are no doubt still licking their wounds.

Bitcoin, Kendrick predicted, would fare well even if overall cryptocurrencies, which trade more like stocks, did not. So actually, the optimal trade would probably be long Bitcoin, short Ethereum. That sort of mix would probably be a good expression of this, Kendrick told Insider.

 On Monday, Kendrick said in a note Bitcoin could reach $100,000 by the end of 2024 and the crypto winter was over. He added that Bitcoin has benefited from its status as a branded safe haven, a perceived relative store of value and a means of remittance.

Bitcoins price shot up earlier this year after Silicon Valley Bank collapsed and fears of a banking crisis mounted.

Meanwhile the debt ceiling crisis has intensified. On Wednesday, House Republicans passed legislation (barely) that would raise the governments debt ceiling in exchange for spending restrictions. In the weeks ahead, theyll try to reach a compromise with President Joe Biden that would allow the nations debt to be lifted. 

If the U.S. did default on its debt this summer, the consequences would be severe for America and the world. Last month, Treasury Secretary Janet Yellen warned lawmakers that a default on our debt would trigger an economic and financial catastrophe.

Few think it will come to that. 

But even without a U.S. default, many Bitcoin bulls see good things ahead. ARK Invest CEO Cathie Wood said in February that in five years Bitcoin will hit roughly $670,000, something like that, and then by 2030, as we see more use cases and more of these insurance policies taken out against fiscal and policy regimes that are not healthy, we think it could pass $1 million.

Bitcoin has plenty of critics and doubters, of course. Mark Mobius, the billionaire cofounder of Mobius Capital Partners, predicted in December that Bitcoin would fall to $10,000 at some point this year. He has said of Bitcoin, Its not an investment, its a religion.

Earlier this month, Berkshire Hathaway CEO Warren Buffett reiterated his long-running skepticism. Something like Bitcoin, it is a gambling token, and it doesnt have any intrinsic value, he told CNBCs Squawk Box. But that doesnt stop people from wanting to play the roulette wheel.

Neither the college nor Spiegel disclosed the exact dollar amount donated, but the college said it was the largest single gift it ever received, surpassing the previous record of $10 million. In California alone, over 3.8 million student loan borrowers collectively owe nearly $150 billion. The total U.S. student loan debt stands at $1.76 trillion.

Otis College of Art and Design is an extraordinary institution that encourages young creatives to find their artistic voices and thrive in a variety of industries and careers, Spiegel and Kerrwho both received honorary Otis degreessaid that day. It is a privilege for our family to give back and support the Class of 2022, and we hope this gift will empower graduates to pursue their passions, contribute to the world, and inspire humanity for years to come.

Spiegel, a Stanford graduate, attended classes at Otis while in high school, which he says were formative to his career. [Otis] changed my life and made me feel at home, Spiegel said. I felt pushed and challenged to grow surrounded by super talented artists and designers, and we were all in it together.

The gift would be life-changing for many of the graduates, Charles Hirschhorn, the president of Otis College, said in a statement last May, adding that student debt weighs heavily on its student bodyover 90% of students at Otis receive financial aid.

We hope this donation will provide much-deserved relief and empower them to pursue their aspirations and careers, pay this generosity forward, and become the next leaders of our community, Hirschhorn said. (Otis College did not respond in time to Fortunes request for comment).

While the ripple effect of Spiegel and Kerrs gift will take decades to bear out, one thing is certain: The graduates have all shared in much-deserved relief in spades. Fortune spoke with three members of the Otis College Class of 2022, all of whom erupted into shrieks and tears of disbelief on their graduation day and now often think about their good fortuneand the raw deal the classes before and after them got. 

The graduates discussed the dent the gift made in their finances and how the shape of their lives has changed in the 12 months since they heard the unfathomable good news. 

Farhan Fallahifiroozi, 23: It helped me buy a house

Courtesy of Farhan Fallahifiroozi

Farhan Fallahifiroozi, a 23-year-old who studied fashion design at Otis, says he didnt understand just how great the news was until he started his post-grad job as an assistant designer at bridal gown retailer Watters, where he works with people who have been paying down their loans for 20 to 30 years. 

Its such a reliefI can put my money aside and use it on something else, he says. That something else ended up being monumental; six months after graduation, he bought his parents a house in Dallas. 

I only needed to put down three percent, and we were already paying rent, so I thought, why not put it towards something that could be ours in the end? explains Fallahifiroozi, who lives with his family.

The experience, he says, has opened his eyes to the absurdity of the cost of education and made him more curious about how money works. Hes gone down a rabbit hole to learn more about business and money, setting him on a path, to have plans, set goals, and hopefully get out of this rat race. While he loves his 9-to-5, he adds, its not what he wants to do forever.

Right now, Fallahifiroozi says, his freedom and choice stems from his lack of financial struggles. He says he currently has around three months worth of savingsan unthinkable amount, had he been shouldering loans. 

If I had that responsibility, I think it would control a lot of my decisions, he says. 

Meka Tome, 24: It allowed me to pursue an art career 

Courtesy of Meka Tome

Meka Tome compares Spiegels gift to winning the lottery; without it, she says her loans would have numbered in the hundreds of thousands. I cant even fathom how much time that wouldve taken to pay off, she adds.

Just the weight of knowing that you would have to pay off loans is paralyzing in and of itself, she says: The act of doing so is a million times worse.

Tome graduated from Otis with a BFA in sculpture and new genres. Heading into graduation, she assumed shed be setting art aside to work full-time in a better-paying field that would help her pay off her loans.

Now, she lives in Los Angeles, working at her alma mater as a photo lab technician and freelancing as a photographer. Shes even considering a masters program. She

By making her artistic aspirations suddenly tangible, the gift has given her a chance to believe in herself, she says. Her family never thought anything much would come of the degree she earned, she says, but theyve come to see it as a valid pursuit now that its not such a financial undertaking.

Being an artist is not the easiest thing to pursue, so I think the hope its given all of us is really justI cant even put it into words. Its unparalleled, she says.

Not for nothing, she adds, Otis is a really expensive school. All of us who really needed help financially can actually exist in the world as ourselves now, she says. Art students in particular are really determined to change the world in the way they know how, and that can span across everything. 

Ashley Alarcon, 22: It afforded me the opportunity to save up for my own company one day

Courtesy of Ashley Alarcon

Like many Otis students, Ashley Alarcon was the first in her family to attend college. The private school tuition was a challenging cost to incur for her family, the fashion design major recalls. 

At Otis, she says, students become eligible for scholarships as their education progresses. So she had to take out the cost of her entire tuition in loans her freshman year before receiving two scholarships to help shore up the differences. 

When she received a job offer to be an assistant designer for the womens apparel team at Levi Strauss & Co shortly before graduation, she felt relieved she would be able to start paying off her loan as soon as she graduated. When Spiegels gift was announced during graduation, she was shell shocked. 

The first thing she realized was that her soon-to-be salary would be her money, to budget however she chooses, rather than to first and foremost to repay the loan. It was such a relief, she says. 

Alarcon currently lives in an apartment in San Francisco with another Otis 22 grad from her program, who also had significant debtwithout which they dont believe theyd be able to afford living out of their homes. Were completely comfortable for the age were at; we can pay rent, we eat well, were just very thankful, she says.

Starting off immediately stable has propelled her further down the line than if shed started with debt, she says. Her end goal is to found her own brand, which would be another amount of debt to incur.

But the fact that I can build it up now, and save, and just budget differently, is super helpful in helping me be more career-driven and more confident, she says. Mostly because Im already at a level I thought I wouldnt be at for another few years.

The 1980s junk bond king turned 21st-century philanthropist is once again taking over the Beverly Hilton in California, bringing together 3,500 bankers, investors and government leaders for four days of presentations and parties starting Sunday.

This years theme of the Milken Institute Global Conference is Advancing a Thriving World, though it takes place in clearly troubled times, including potential recessions in the US and Europe, war between Russia and Ukraine and unabated climate change.

Located in the heart of Beverly Hills, where palm trees sway and luxury cars line the streets, the conference is often described as Davos West, a California version of the World Economic Forum in the Swiss Alps. The cheapest ticket comes as part of an annual membership package that starts at $25,000, though some attendees can get discounts.

But behind the the glitz and glamor, this years confab is expected to strike a particularly dour tone. Financial firms have collapsed, First Republic Bank is teetering, property defaults are climbing and dealmaking the bread and butter for many attendees is in the doldrums.

tening of financial conditions due to bank fallouts.

An early session will feature the International Monetary Funds Kristalina Georgieva, whos expected to address geopolitical tensions and financial distress, and NATO Admiral Rob Bauer will offer an update on Ukraine.

Headliners from finance include Wells Fargo & Co. CEO Charlie Scharf, Citigroup Inc.s Jane Fraser and Citadel Securities chief Peng Zhao. 

Patrick McHenry, the Republican chairman of the US House Financial Services Committee, and Maxine Waters, the top Democrat on that committee, will both appear Monday albeit on separate stages.

But for almost every anxiety-provoking economic and political subject, the conference offers a dash of hope, reflecting many of Milkens current obsessions. He just published a memoir, Faster Cures: Accelerating the Future of Health, about his journey helping to drive medical breakthroughs. 

Topics include longevity, while comedian Seth Rogen and spirituality icon Deepak Chopra plan to explain the benefits of mindfulness for brain health.

With more than 280 sessions overall, Milken, 76, will personally host about a dozen. Hell also interview Todd Boehly, CEO of Eldridge Industries and co-owner of Chelsea Football Club, enduring their own crisis.

American Dream

After making a fortune as a financial innovator of leveraged buyouts and hostile takeovers, Milken pleaded guilty in 1990 to securities fraud and tax violations. His reputation in the financial world had long recovered before he was pardoned in 2020 by President Donald Trump.

Beyond the panels, dealmakers are expected to hobnob in suites at the Hilton and the neighboring Waldorf Astoria.

After dark, many will dine at private parties in the palatial villas of Bel-Air, where the talk of transactions is likely to be lively, even if the economic backdrop is uncertain.

The mood is pragmatic Kapoor said. Neither overly cautious nor overly rosy.

Participants looking for a healthier and more relaxing escape can attend yoga and Pilates sessions in the wellness garden at sunrise, experience a sound bath, or learn more about Ayurveda medicine, an ancient holistic approach to healing.  

Monday through Wednesday afternoons, guests are encouraged to embrace their inner child at Puppy Playtime, where they can frolic in a pen with little dogs.

To cap it off, singer Diana Ross will end the conference with a performance of her greatest hits.