Buffett blames banks for credit crisis

[ben_meyers]

Buffett blames banks for credit crisis Sun May 25, 6:21 AM ET


Blame for the sub-prime crisis lies at the feet of banks who took too many risks in mortgage lending, U.S. billionaire investor Warren Buffett told newspaper El Pais in an interview published on Sunday.

"The banks exposed themselves too much, they took on too much risk .... It's their fault. There's no need to blame anyone else," he said.

Buffett, dubbed the world's richest person by Forbes magazine, said he believed the situation in financial markets would not deteriorate further.

"I don't think the situation will get worse in financial markets. General conditions in the business world will get worse, but it will only last a while," he said, adding he had no idea when an upturn would come.

And the reason the banks took on the risky loans is because of the 1999 law that repealed the Glass-Stegal Act regulating the financial industry.

http://www.streetsmartreport.com/school/Commentaries/My%202006%20Wish%20for%20the%20U.S.%20Financial%20System.html

Must read at Mother Jones

It's the Deregulation, Stupid

Commentary: Democrats from Carter to Clinton helped roll back the government's regulatory power, but as the economic crisis deepens, "regulation" is no longer such a dirty word.

By James Ridgeway

March 28, 2008

http://www.motherjones.com/commentary/columns/2008/03/deregulation-economic-crisis.html

[MichiganVote]

1. And he is right!

[mdmc]

2. yup

[cliss]

3. Not true.

There are 2 culprits, and they are bigger than the banks. They in fact hold the biggest blame.

1) The government which deregulated the banks. They repealed the Glass Steagall Act which made it a free-for-all. US banks became the biggest skamsters on the Planet, and they went out and sold their Toxic Crap all over the world.

2) THE FED. Equally as bad because stupid Alan Pondscum kept interest rates too low which encouraged this Feeding Frenzy from the Sharks.

Sorry, Warren.

================
Even Worse:
Buffett is saying that the situation will not get worse. Is he kidding? Does he hold banking stocks?
We haven't even begun to see the fallout yet.