Buffett blames banks for credit crisis

Mr.Buffet is correct in saying that the banks have caused this crisis.Their greed overcame good business practice and unfortunately the American people are paying for the bankers greed.Our goverment failed us by not enacting tighter regulation on investment banks or enforcing those already on the books.One would hope that a lesson is being learned by this but greed always clouds good judgement.

BullCRAP. Banks are a business and business is about making money- which we all know banks are good at. Things were not going so well under Bush that all these lending institutions could just start handing out $250,000 home loans to some schmuck that only made $60,000 a year-especially during a war. These institutions have the best of the best experts and analysts to help them plan way ahead- there's no way they would have taken ANY of the risks that they did without knowing they would be bailed out one way or another. When banks suddenly start giving out loans to people who can't even keep goldfish alive THAT'S when you know SOMETHING is up. Banks aren't okay with losing a cent unless and until they KNOW they will recoup their loss. The American consumer should have known better. Banks and corporations don't get rich by being friendly- they don't care where you lay your head down at night. Shame on the American consumer for getting greedy and falling for the biggest scam of all. I don't know why we are being plunged into financial ruin (maybe for the psychological edge that makes it easier to lead people by the nose)- but shame on you America-the powers that be played on your greed and sloth. They blew smoke right up your butt telling you you could have your cake and eat it too. And YOU did your part by signing on the dotted line without reading a word and danced right into the hand of the devil. GET BACK TO REALITY AND WAKE UP.

The banking system bears a large part of the blame, but there is plenty to go around. Really, it's banks, regulators and politics rolled into a neat bundle. If you look carefully you will note that all of this "money" is not entirely domestic and that is why the "write downs" are showing up all over the world. Considering that this is international banking it is very difficult to believe that lenders made these loans without being aware of potential consequence. Northern Rock in the U.K. is a great example and still on the balls of it's ass assest wise. UBS just did a slight of hand deal to get a load of red ink off it's books. Check that deal out - inventive financing at it's slickest.
Let's not forget the purchasers!!! This was a speculators dream come true and they are a large part of the problem. Everyone like to pin the blame on the first timers and the naieve, but they have always been around and have never caused a crisis. The answer to the "why not" part is simple as they have always been the low end of the market and cannot afford 500,000 up under any circumstance. It was mostly speculator fed as they had the credit and collateral.
How about the regulators?????
The Fed has had the power to intervene on predatory lending since the early 1990's. Where was the Fed??? Granted, most of the lending did not qualify as "predatory", but at least a cautionary statement would have been in order. The House Finance Committee, Barney Franks & co., where were you when this was going on??? You had the power to tell the banks to be more conservative, yet there was only silence. I remember one hearing in which Al Jackson, the HUD secreatry all but stated that this was happening. For his warning, he was no longer invited to testify. So much for government!!
The bottom line is that the current is the result of the actions and inactions of a relatively small group of people, the effect the lives of the majority in a very negative manner.

IT NOT ONLY THE BANKS THAT HAS BEEN OVER COME BY GREED, LOOK AT THE OIL COMPANYS.
AMERICAN PEOPLE ARE A SLEEP AT THE WHEEL.
THEY CONTINUE TO LET THESE CRIMINALS
GO UP IN THEM WITHOUT A KISS. GEORGE BUSH
AND HIS GANG OF THIEVES ROCK, BID DICK
CHANEY IS THE KING THIEVES, HE REALLY ROCKS.

I think we can and should add Warren's latest in which he feels that there will be a long and deep recession. Please note that he is still using the word recession. Months ago I said that we are heading for a depression. Let's see who wants to go first with that word.

Maybe the banks are to blame for easy credit, but lets not loose site of the overall picture.
1. The Mortgage Brokers didn't help. They would send applications out to 20-30 places for "B" paper loans (Juice Mortgages) and sure enough, someone would bite.
2. Job Loss. If you don't have a job, you can't pay the mortgage. Big business wants cheap labor even if they go abroad to get it.
3. The pump. If you fill your tank for $75.00, it's doubtful your going to Best Buy afterwards (which equates to someone at Best Buy losing their job)
4. High Property taxes. Some people are losing their homes (not for missed Mtg. payments,) but rather back property taxes.
5. The Consumer is not spending (and won't near term) they are in a "survival type Mode" and buy only what is necessary. The Federal Government
does not get it, you can't make people spend!!
6. The deficit. There is no way out. We can't even think about growing our way out of this debt. From where I sit, the Fed. Government has no right to even offer a opionion about household money matters. Look what they have done!!

I wonder why Chase gave a $100,000
line of credit to a person I know when he had
no income and a failing business?