Buffett Savages Banks Over Credit Crisis

May 25, 2008 by Douglas A. McIntyre

Who is to blame for the subprime mortage mess which has effectlively locked up much of the global credit markets and pushed the US economy into recession. It is the banks. Period. If they had been responsible in their home lending practices, most of the thrashing of the economy could have been avoided.

Thus says Warren Buffett as he tours Europe like a king. According to Reuters "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 may be right, because a number of companies like Countrywide Credit (CFC) gave mortgages to people who were able to buy homes for over $1 million on salaries of under $10,000.

Nonetheless, it is 20/20 hindsight. Where was Buffett when we needed him?

Douglas A. McIntyre