Posts Tagged ‘les leopold’

Warren Buffett defends snake-oil sales

4 May 2010

That’s my interpretation of this column, anyway.  The NYT‘s Andrew Ross Sorkin and all the other apologists for Goldman Sachs take a different view.

Buffett says the institutions who bought the reeking mortgage derivatives from Goldman have only themselves to blame.  They just got outsmarted.

Um, couldn’t we say the same about the lady who bought the kerosene-soaked sugar from the local grocer?

Why was Goldman selling toxic products in the first place?  If they knew they were toxic, isn’t that fraud?  Isn’t that the basis of the lawsuit?

I’d always liked Warren Buffett prior to reading this column, but now it’s hard not to conclude that he’s just like all the rest who would maintain that nobody on Wall Street bears any blame whatsoever for the financial crisis.  Buffett famously said a while back that derivatives were financial weapons of mass destruction.  Caveat emptor — said destruction can only be the buyer’s fault.

UPDATE, 7 May 2010:  Les Leopold, author of The Looting of America, says all this, and more, right here.

Obligatory song link: