Wednesday, March 23, 2016

On standards........................

Mr. Bondi:   "Do you think if Fannie had tighter standards and tighter controls, that we could have averted a financial crisis?'

Mr. Buffett:  "Well, in fact, Freddie and Fannie were in a position.  Whether they were practically in that position - whether Congress would - I mean, would have tolerated them coming up with really much stricter standards, I don't think if probably could have happened.
      But I'm not sure they wanted it to happen, either.  I mean, they were enjoying the party, too.  And they didn't think the party was going to end like this.  I mean, it wasn't like somebody was thinking, 'This is going to end in the paralysis of the American economy.'  You know, they just - they started believing what other people believed.  It's very tough to fight that.
      We will have other bubbles in the future.  I mean, there's no question about it.
      I don't think the President of the United States could have stopped it by rhetoric.  And I think any President of the United States had said, you know, 'I am campaigning on a program of 30 percent down payments, verified income, and not more than 30...,"  they might not have impeached him, but they sure as hell wouldn't have reelected him."

-Warren Buffett answering more questions from the Financial Crisis Inquiry Commission

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