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Warren Buffett, Charlie Munger blame faulty regulation for banking turmoil

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  • Gr8Dane
    May 3, 2010 4:53 a.m.

    Oh, I get it. So now Obama wants to pass more regulations of Wall Street in order to "prevent" another meltdown? This , from a guy who never had a real job before being President other than Lawyer of corrupt ACORN? At least Buffett knows what he's talking about based on experience.

  • Progressive
    May 3, 2010 7:29 a.m.

    Gr8Dane, read the quote again. They aren't saying Wall Street shuldn't be regulated but that it has been regulated poorly. In fact one of the problems they see is too much permissiveness. I'm sorry Obama fixing the financial regulation is not wrong headed or even what Buffett is worked up about. His gripe is the singling out of Goldman.

    Maybe you could get worked up next time about how Obama is rasisng his dog?

  • Laurels
    May 3, 2010 9:13 a.m.

    Re: Progressive
    The article does say that Buffet and Munger place much of the problems with Wall Street on "faulty government regulations of the financial industry" and on the "permissiveness and stupidity" of those regulations.

    Changes in those regulations are needed; however, based on past performance, I do not have much confidence in some of the reforms being proposed by the Obama administration.

    For instance, one of the provisions included in the house version of financial regulation gives the FTC regulatory authority over the internet. Not only does this have no relevance to the financial collapse that prompted the financial reform bill, but it would allow the FTC to issue rules much quicker than the FCC can and even allow the FTC to impose civil penalties on companies. The internet is one of the few areas of business growth. This particular provision will dampen and hurt that growth.

    Buffet said that "faulty government regulations" of the financial industry helped to create the financial mess. Additional "faulty government regulations" if passed will only add to the woes!