Buffett: Bank woes are "poetic justice"

[Coexist]

http://www.reuters.com/article/businessNews/idUSN0631767220080207?feedType=RSS&feedName=businessNews

Buffett, one of the world's wealthiest people, appeared to see irony in the fact that many of the banks who marketed complex investments which have now crashed are bearing much of the fallout.

"It's sort of a little poetic justice, in that the people that brewed this toxic Kool-Aid found themselves drinking a lot of it in the end," he said.

<snip>
"I wouldn't quite call it a credit crunch. Funds are available," Buffett said during a question and answer session at a business event. "Money is available, and it's really quite cheap because of the lowering of rates that has taken place."

He added: "What has happened is a repricing of risk and an unavailability of what I might call 'dumb money,' of which there was plenty around a year ago."

[slackmaster]

1. As someone who lost a good banking job in the last such cycle

I am underwhelmed by Mr. Buffet's empathy for the innocent individuals who are being hurt by this one.

[ReadTomPaine]

2. Here's your favorite emoticon, dusted off shiny and bright, just for you...

:nopity:

It's named appropriately on the lookup table, I think.

[ProfessorGAC]

3. What Did You Expect Him To Say?

Did you want him to say that he thinks it's ok that the wheelers and dealers put these banks in this position? Do you want him to say that the gov't should make it all ok and these banks should pay no price for these egregious gambling mistakes?

I don't get your criticism of him. He was answering a very specific question regarding the bank crunch.
The Professor

[Selatius]

5. You should be more angry with your employer than with Buffett's observations.

If your employer was involved heavily in subprime mortgages when that sector imploded, you have no one to blame but your employer for making such reckless investments.

[slackmaster]

6. Oh, they ripped me off real good

Including stock options that became worthless.

[Selatius]

4. I think the banker laughs last. You see, the banker got the Federal Reserve to bail him out.

We would all be so fortunate if such powerful institutional players intervened to bail ordinary folks out if they got into trouble. Of course, this is America. Powerful interests look after their own, not ours.

If the Federal Reserve truly believed in unfettered markets, they would've keep interest rates the same and let the banks bear the full brunt and fury of their stupidity. The market can dish out punishment as good as it gets it provided the Fed lets the market do it.

[earth mom]

7. ROFL. Guess some rethuglicans believe in Karma.

Who'd a thunk? :wow: