Sometimes you just have to sit back and laugh for a minute. And comments like this from Warren Buffett would add a bit more levity if they were not so shocking.
According to Mr. Buffett, big banks such as Bank of America and Wells Fargo, were actually the victims of homeowners cashing out on lines of credit and home equity loans before eventually losing their homes in foreclosure. Let that sink in for a minute.
Luckily, we do not still live in a world of telegraphs and guys with press badges stuck in the brims of their fedoras posturing to shout questions in a Scoops Callahan accent.
While propaganda still exists, this is beyond the pale. Certainly, Mr. Buffett is looking to buoy his billion dollar investments in both Bank of America and Wells Fargo, but anyone with a pulse who has done 3 seconds of research on this topic understands the banks were not victims. Far from it. They were nothing more than paper pushers selling poorly researched investments to one group and handing piles of money to homeowners, deserving or not.
Regardless, the banks were, or should have been, the gatekeepers. They had no underwriting standards. They simply recognized a trough of cash and took it by the truckload while replacing it with loans they knew nothing about. The victims were those who believed the banks were telling the truth regarding the securities they were selling, only to find out later it was a shell game that reaped billions in profits and billions in hand-outs from the federal government.
Sorry Mr. Buffet. Your claims ring hollow around here. The facts simply do not support your propaganda.