This is an article on Motley Fool about Warren Buffet and his buying decisions within the mortgage market. He does not seem fazed by the debacle and seems to indicate that the credit crunch will not be a terrible drag on the economy, though it may linger for 6 months to two years.
That’s okay. His company, Berkshire Hathaway, is buying Wells Fargo and other lenders, though he’s staying completely away from Countrywide. I wonder if he’s buying WaMu?
But the cast of characters who missed signals like the rise of delinquencies and foreclosures is becoming easier to identify. They include investment banks happy to sell risky but lucrative mortgage debt to hedge funds hungry for high interest payments, bond rating agencies willing to hope for the best in the housing market and provide sterling credit appraisals to debt issuers, and subprime mortgage brokers addicted to high sales volumes.