Wednesday, March 23, 2016
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