Sage of Omaha blames Wall Street 'sewage' for crisis

Warren Buffett, chairman of Berkshire Hathaway, slammed bankers, insurers and regulators, placing the responsibility for the credit crisis firmly on their shoulders. Buffett and vice chairman Charles Munger labelled the mortgage-backed securities sold by Wall Street as “sewage” and blamed the press and regulators for not spotting the danger earlier.

The Sage of Omaha saw a record 35,000 people attend Berkshire Hathaway’s annual meeting on 2 May and spoke at a news conference on Monday. “I think that virtually everybody associated with the financial world contributed to it,” he said, according to Bloomberg. “Some of it stemmed from greed, some from stupidity, some from people saying the other guy was doing it.”

The value of Berkshire Hathaway has fallen by nearly 10% and according to some reports Buffett’s personal fortune has been reduced by $25bn (£17bn). But Reuters reported Buffett still has faith in the insurance industry. “Insurance is a good place to be in the midst of an economic downturn.”