Warren Buffett quotes from the interview:
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- “AIG would be doing fine today if they never heard of derivatives… I said they were possibly financial weapons of mass destruction and they have been, I mean they destroyed AIG, they certainly contributed to the destruction of Bear Stearns and Lehman”
- The biggest single cause was that we had an incredible residential real estate bubble.
- [on consuming more than we are producing] I don’t think it is the most pressing problem at all. We are trading away a little bit of our country all the time for the excess consumption that we have, over what we produce. That is not good. I think it is terrible over time.
Related: Warren Buffett related posts – Credit Crisis Continues – Credit Crisis (August 2007)
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This current economic disaster is self-generated. It was generated by the market itself, by getting too cocky, using leverage too much, too much credit. And it got excessive…
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