Nobody saw bust coming, Buffett tells Congress

There are 27 comments on the DispatchPolitics story from Jun 3, 2010, titled Nobody saw bust coming, Buffett tells Congress. In it, DispatchPolitics reports that:

Billionaire investor Warren Buffett told a congressional panel yesterday that if he didn't see the housing bust coming, he can't blame the credit-ratings agencies much for missing it, either.

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Dublin

Tallmadge, OH

#1 Jun 3, 2010
Money is the most important thing in Buffett's life, and he has a conflict of interest in supporting the ratings agency, as BRK owns a large block of shares. I heavily discount his testimony
Restaurant Guy

Sunbury, OH

#2 Jun 3, 2010
Crooks, each and every one of them. The salient point in all of this is that we live in a corrupt country. It is impossible to acquire wealth of that magnitude without leaving your boot print on the top of every head that you stepped on to get there. All of these crooks are interlinked with conflicts of interest. One hand washes the other, and the cycle never stops. Don't kid yourself. We are all just part of the Matrix.
Hey Now

United States

#3 Jun 3, 2010
This 'hearing' and others similar distracts from the fact that when the bubble went poof our government further concentrated the wealth upwards. Then O-rama doubles Bushies' bailout, extends it to foreign banksters, and then creates a $24 TRILLION Troubled Asset Lending Facility, aka TALF. I don't need to hear some rich codger splain away the subleties of the rip-off in a contrived theatrical event in DC. All these bailouts, resulting laws do one thing: sustain the broken system of crony/kleptocrat governance.
liberated

Columbus, OH

#4 Jun 3, 2010
Perter Schiff did. NO ONE would listen, he is running in Conn.
The community reinvestment act and anyone involved should be tried for treason against AMERICA!
The banks were forced by the "government" to supply home loans to people not based on income but socioeconomic status.
Telmark

Chico, CA

#6 Jun 3, 2010
Most of us realized, in about 2002, that the rising housing prices could not be sustained by the flat and/or falling income rates.

The fact is that the housing market had priced itself out of the reach of most non speculative buyers by late 2003. This, unfortunately, left the market open to speculative lenders and buyers who were enabled by certain Government entities that allowed and/or pushed the "subprime" lending practices.

The housing market was, by 2005, nothing but a ponzi scheme propped up with borrowed money. This problem was compounded by the fact that many of those who played this ponzi scheme did so with money borrowed through high and/or variable interest rate loans.

BTW, similar circumstances are what caused the Great Depression of the '30s.
Sparky

Columbus, OH

#7 Jun 3, 2010
What a cartoon.

The limelight-loving, wealth-redistribution devotee Buffett again carries the water for his left-wing buddies.

The politicians that created this mess knew exactly what they were doing. That's how Franklin Raines made over $90 million, Jamie Gorelick $25 million, not to mention whatever Barney Frank, Chris Dodd and company made, and all their cronies on Wall Street.
History major

Columbus, OH

#8 Jun 3, 2010
Sparky wrote:
What a cartoon.
The limelight-loving, wealth-redistribution devotee Buffett again carries the water for his left-wing buddies.
The politicians that created this mess knew exactly what they were doing. That's how Franklin Raines made over $90 million, Jamie Gorelick $25 million, not to mention whatever Barney Frank, Chris Dodd and company made, and all their cronies on Wall Street.
Buffett and Wall Streeters as left-wing wealth redistributors? That's incredibly funny!
HowRad

Florence, KY

#9 Jun 3, 2010
Not true, Stephen Holmes predicted it in an article in the New York Times, dated Sept 30,1999, "Fannie Mae eases credit to aid Mortgage lending".
Sparky

Columbus, OH

#10 Jun 3, 2010
History major wrote:
<quoted text>
Buffett and Wall Streeters as left-wing wealth redistributors? That's incredibly funny!
Hey, kid... do your homework before you come in here and raise your hand.

Buffett is a huge fan of the estate tax. That's confiscation of hard-earned dollars that have already been taxed once. He doesn't believe that a person should have a birthright to their parents' wealth.

If you don't think THAT is WEALTH REDISTRIBUTION, then YOU are "incredibly funny".
Political Reality

Columbus, OH

#11 Jun 3, 2010
Sparky wrote:
<quoted text>
Hey, kid... do your homework before you come in here and raise your hand.
Buffett is a huge fan of the estate tax. That's confiscation of hard-earned dollars that have already been taxed once. He doesn't believe that a person should have a birthright to their parents' wealth.
If you don't think THAT is WEALTH REDISTRIBUTION, then YOU are "incredibly funny".
OH; you're right Sparky Buffett is a fan of unearned concentrations of wealth and for good reasons that people like you hide and lie about.

In any case, average Americans will NEVER catch up to the massive right wing wealth theft and the privileged distribution schemes of the top 10% you defend in this country that have broken the back of the middle class by trying to make this a 3rd world country for average working class Americans through cheap labor while creating desperation for the thousands of fellow Americans who fight your wars.
liberated

Columbus, OH

#12 Jun 3, 2010
Political Reality wrote:
<quoted text>
OH; you're right Sparky Buffett is a fan of unearned concentrations of wealth and for good reasons that people like you hide and lie about.
In any case, average Americans will NEVER catch up to the massive right wing wealth theft and the privileged distribution schemes of the top 10% you defend in this country that have broken the back of the middle class by trying to make this a 3rd world country for average working class Americans through cheap labor while creating desperation for the thousands of fellow Americans who fight your wars.
No, the citizenry signed for the VERY mortgages that have broken the country. oh, do not forget the greed, credit card spending, and pretending to be rich. You are an idiot.
Just wondering

Columbus, OH

#13 Jun 3, 2010
Sparky wrote:
<quoted text>
Hey, kid... do your homework before you come in here and raise your hand.
Buffett is a huge fan of the estate tax. That's confiscation of hard-earned dollars that have already been taxed once. He doesn't believe that a person should have a birthright to their parents' wealth.
If you don't think THAT is WEALTH REDISTRIBUTION, then YOU are "incredibly funny".
Do your own homework. I know Buffett's opinions. I know he supported Obama for president. I also know he believes everyone should make their own wealth and not have it handed to them by mommy and daddy. He is a self-made BILLIONAIRE and I admire him for that. I don't think that makes him some ultra liberal. And I know most Wall Streeters are no lefties. I'm sorry you don't get it, but it is funny that someone would actually say that.
Telmark

Chico, CA

#14 Jun 3, 2010
Warren's father was a four term Congressman and the owner of a brokerage firm. Warren, while in high school, invested in a business owned by his father.

This is, in part, how he got his start in the investment world.

We should all be so lucky to have the same fortunate circumstances as Warren had when he was young.
Political Reality

Columbus, OH

#15 Jun 3, 2010
liberated wrote:
<quoted text>
No, the citizenry signed for the VERY mortgages that have broken the country. oh, do not forget the greed, credit card spending, and pretending to be rich. You are an idiot.
3 parts to any contract: Offer/ Acceptance/ Consideration
People can not sign for what they are not offered or receive what they are not offered.
Which was all top down cheap money designed by billionaire rightwing bankers looking cash in on greed because of radical rightwing DE-REGULATION.
As for the name calling?
Go look in the mirror.
Telmark

Chico, CA

#16 Jun 4, 2010
Political Reality wrote:
<quoted text>
3 parts to any contract: Offer/ Acceptance/ Consideration
People can not sign for what they are not offered or receive what they are not offered.
Which was all top down cheap money designed by billionaire rightwing bankers looking cash in on greed because of radical rightwing DE-REGULATION.
As for the name calling?
Go look in the mirror.
Barney Frank;

In 2003, when the Bush administration proposed creating a new agency to assume supervise Fannie and Freddie, Frank’s response was that Fannie and Freddie “are not facing any kind of financial crisis… The more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.”

Frank went on to say:

"The more people, in my judgment, exaggerate a threat of safety and soundness, the more people conjure up the possibility of serious financial losses to the Treasury, which I do not see. I think we see entities that are fundamentally sound financially and withstand some of the disastrous scenarios. And even if there were a problem, the Federal Government doesn't bail them out. But the more pressure there is there, then the less I think we see in terms of affordable housing."

I'm not sure what planet Frank was living on in 2003 but, housing prices on this planet were as much as 3 to 4 times higher than what they were before the they started the whole CRA styled "give a home loan to those with no money, no credit history, no down payment, and (in many cases) no job or S.S. number" programs.
liberated

Columbus, OH

#17 Jun 4, 2010
Political Reality wrote:
<quoted text>
3 parts to any contract: Offer/ Acceptance/ Consideration
People can not sign for what they are not offered or receive what they are not offered.
Which was all top down cheap money designed by billionaire rightwing bankers looking cash in on greed because of radical rightwing DE-REGULATION.
As for the name calling?
Go look in the mirror.
OKAY,
According to your flawed equation are you actually saying that IF I am offered something it does NOT matter if I sign for it because it was offered?
Man, you are legally insane with that equation. Could you be serious?
It is called buyer beware, reading, representation....
You let ANYONE off the hook who claims stupidity? BS and you know it.
It ALL comes down to citizens knowingly, greedily, signing on the dotted line FACILITATING the banks that is a fact!
If you look in the mirror you must not see anything, vampires have no reflection....
Sparky

Columbus, OH

#18 Jun 4, 2010
Political Reality wrote:
<quoted text>
OH; you're right Sparky Buffett is a fan of unearned concentrations of wealth and for good reasons that people like you hide and lie about.
In any case, average Americans will NEVER catch up to the massive right wing wealth theft and the privileged distribution schemes of the top 10% you defend in this country that have broken the back of the middle class by trying to make this a 3rd world country for average working class Americans through cheap labor while creating desperation for the thousands of fellow Americans who fight your wars.
"UNEARNED CONCENTRATIONS OF WEALTH"??? Who has money that wasn't earned? Obama from being a community organizer and having books published by liberal elitists? Bill & Hillary? Did they earn their loot? How about Oprah? Is $300 million a year for the last 15 years earned? How about all the other rich limousine liberals people like you fawn over?

Thanks for dodging the INHERITANCE TAX issue and the CONFISCATION of already-taxed family wealth.

You haters of "the rich" better hope they don't take their toys and GO HOME.

Because the top 1% of earners pay 40% of all income taxes, and the top 5% pay 60%.

Someday, you'll figure out that the goal of Marxists like Obama is to destroy the middle class, and expand the dependency class. That is how they gain their power.

So the only thing that remains is a huge dependency class, and the elite - of which your Dumbo-eared Marxist buddy will be part.

And if people don't want to fight wars, they don't have to. We have a volunteer military.

But as far as Buffett is concerned, why doesn't he give his money to the IRS right now? Why does he get to pick who gets it? Why would he care? The government decides what happens to our money - he should stroke that check RIGHT NOW.

You and Buffett have something in common - you're both HYPOCRITES.
Blinded-By-The-R ight

Columbus, OH

#19 Jun 6, 2010
Sparky wrote:
<quoted text>
Hey, kid... do your homework before you come in here and raise your hand.
Buffett is a huge fan of the estate tax. That's confiscation of hard-earned dollars that have already been taxed once. He doesn't believe that a person should have a birthright to their parents' wealth.
If you don't think THAT is WEALTH REDISTRIBUTION, then YOU are "incredibly funny".
Did you do your "Homework"? The Inheritance Tax was Started by the Last Greatest Republican Ever! Pres. Ike was great!

President T. Roosevelt started the TAX! Why? Look it up! Lok at how many Poloticians support the TAX!
Blinded-By-The-R ight

Columbus, OH

#20 Jun 6, 2010
Yes there was many people who saw it comming! Many ordinary People! There was One Woman who worked at the CFTA in New York in 1994! She sounded the Alarm and her story can be found by googleing her name!!! Brooksley Borne SSHe was discredited as a loney by Alan Greenspan, Lawrence Sommers, Ben Berneke, John Poluson, many others in the Bush/Clinton/Bush years!!
liberated

Columbus, OH

#21 Jun 6, 2010
Political Reality wrote:
<quoted text>
3 parts to any contract: Offer/ Acceptance/ Consideration
People can not sign for what they are not offered or receive what they are not offered.
Which was all top down cheap money designed by billionaire rightwing bankers looking cash in on greed because of radical rightwing DE-REGULATION.
As for the name calling?
Go look in the mirror.
Buyer beware Buyer Beware...Have you EVER heard of that? Listen your take on who is responsible for the economic collapse is WRONG.
The buyer is ALWAYS responsible ESPECIALLY when "no income" statement, or someone else says you can afford ANYTHING! Anyone with a brain knows this.
Greedy irresponsible citizens wanted what they could not pay for period, and had they NOT SIGNED THE BANKERS WOULD NOT HAVE HAD THE OPPORTUNITY. GREEDY home buyers are the only ones top blame and now they want "help" from the people who were not greedy.
I do not believe the propaganda of NPR, PBS MSNBC or CNN. The gig is up.
It is ignorant to blame any of this on the right wing it just is.
Oh, a "sucker is born every minute" rings true and you sure are one of them.

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