Buffett: Banks Victimized by Evicted Homeowners

Listen to this guy will ya !!!!

He actually blames "smart" homeowners who were able to refinance homes for adding to losses of banks

He also blames people who have been foreclosed upon and ended up with a profit as another reason for bank "victimization"


Feb 26, 2012 9:01 PM PT -- Bloomberg

Warren Buffett, who controls the biggest shareholding of the No. 1 U.S. mortgage lender, said banks were victimized by some homeowners who refinanced their loans before getting evicted.

“Large numbers of people who have ‘lost’ their house through foreclosure have actually realized a profit because they carried out refinancings earlier that gave them cash in excess of their cost,” Buffett, chairman and chief executive officer of Berkshire Hathaway Inc. (BRK/A), said Feb. 25 in his annual letter. “In these cases, the evicted homeowner was the winner, and the victim was the lender.”

Foreclosures have claimed about 5 million homes since the property market began its slide in 2006. That has saddled lenders like Bank of America Corp. with defaults, vacated properties and lawsuits. Berkshire, whose stake in Wells Fargo & Co. (WFC), the largest U.S. mortgage lender, is valued at more than $11 billion, invested $5 billion in Bank of America last year.

It's all the Homeowners Fault !!


The Banks are the Victims !!!!

Is this guy for REAL ??

reply to post by xuenchen


AAAwwww, lets hold 'em a pity party.

I brought along the world's smallest violin.

Well,

I guess those big bailouts weren't enough !!!

here we go...
Now you know who is the newest addition to the terrorist watch list...
The HOMELESS

they are everywhere..and they are well armed...most of them have a right AND a left...thats an arsenal...
and they hoard stuff which is illegal under homeland land security's new laws even if it is only in in shopping carts ...it like ....an .... an INVASION .....and some of them are VETERANS ...and others have skills...you never know what they could do next what their secret "in a tent" is.....

Iran has homeless people too maybe we should NUKE them

Senile Buffett should shut the hell up and go to a retirement home already...

If there was real justice, the guy would be in jail for insider trading, bribery and a number of other crimes.

reply to post by xuenchen


The guy is a billionaire.
I really doubt he is that in touch with the common man and the choices the common man has.
So yes....he is for real.

Its sad when rich out of touch people give their ignorant opinions while exposing themselves like that.

reply to post by xuenchen


Oh sure, they're the victims. And just in case you doubt it, stay tuned for a door-to-door donor campaign in aid of the victims --coming to a community near you.
/sarcasm off.

Well, I have to say that I recently was foreclosed on.
And, I have to say I ended up getting the better end of the deal, even had money left over.
So, now some other sucker was suckered by the bank.

For me, this was the best thing that could have happened. I am now 100% debt free.

Except, people keep saying to me, "but your credit score is screwed." Fine, I do not care, as far as I see it, I only need my credit score if I plan on being in debt.Which I do not.

Originally posted by Skewed
Well, I have to say that I recently was foreclosed on.
And, I have to say I ended up getting the better end of the deal, even had money left over.
So, now some other sucker was suckered by the bank.

For me, this was the best thing that could have happened. I am now 100% debt free.

edit on 27-2-2012 by Skewed because: (no reason given)

[color=cyan]*****

good for you.

========

But Buffet now knows who you are.

and your kind !!

They really hate normal and smart regular citizens

I thought all the banks and all their employees were college educated ?

Who caused the mess anyway

reply to post by Danbones


Sadly enough, that narrative that was so funny it was sad, seems to cover the dialogue of American leadership these days. They are acting just like Soviet Russia did, painting new enemies every single day. Now I see that there is no limit to the paranoia that exists within such a broken system. It's like now they exist only to continue their existence, pretty pathetic if you ask me. They are like those bottom feeders in a fish tank, personified.

Rich people say the darndest things! I think greed interferes with logic.

What a total ass he is.......Can I say that here?
God damn rich people need more wiping up than a new born baby's bottom.
S&F
Regards, Iwinder

Originally posted by Skewed
Well, I have to say that I recently was foreclosed on.
And, I have to say I ended up getting the better end of the deal, even had money left over.
So, now some other sucker was suckered by the bank.

For me, this was the best thing that could have happened. I am now 100% debt free.

Except, people keep saying to me, "but your credit score is screwed." Fine, I do not care, as far as I see it, I only need my credit score if I plan on being in debt.Which I do not.

edit on 27-2-2012 by Skewed because: (no reason given)

Excellent Post and it says it all I think.



Regards, iwinder

The system works itself out. As the top 1% isnt happy with the milk anymore and wants to take the cattle to the slaughter without them being able to feed and educate their offpsring as the poverty levels grow, there are less and less consumers around to part with their money and make them a profit.

Unless of course through mechanisms unkown to me the top 1% (0.1%?) has direct access to the printing press and does not need to go through hassles such as providing a product or service in order to turn a profit.

I've decided to let my house go . It's 500 miles away I'll never live in it again the payment continues to go up taxes are unreal. Jan 1 I decided to give up. Had good renters till the bank decided they couldn't deposit money in the account to make the payment they HAD to mail it to me.I could no longer make automatic deposits to cover the difference I had to send a check 10 days before it was due. It was costing $200 a week out of my pocket to not to live there. Wanted to short sell to the renters and take a loan for the 8k$ difference the bank said no way could I sell so now they can sell it.

And none of you can read between the lines.

Buffet is notorious (among the other rich elite) because he actually cares about the welfare of the country and the people. He is the one who wants proper taxation on the rich. By stating this he is telling people being foreclosed on what they can do to strike back.

reply to post by Iwinder


However, the bank did not lose either, I don't think. The person that bought it at auction actually paid more than it was worth and what was owed, so the bank one way or another got their money. If not from me, from someone else.

Banks were 'victimized' while people sleep in their cars, tents, and homeless shelters

Buffett can't die soon enough

Just in case anyone wants to stop by his home asking him to clarify his statements, his address is
5505 Farnam St Omaha, Nebraska 68132-3423
answers.yahoo.com...

For those who need to see a map:
maps.yahoo.com...=&q=5505+Farnam+St%2C+Omaha%2C+NE++68132-3423&conf=1&start=1&lat=41.257568&lon=-95.998558&zoom=16&mvt=m&trf=0

A letter might suffice, so I'm just sayin'.

reply to post by xuenchen


I have read his actual letter to shareholders and have seen no indication that he was speaking about homeowners that were foreclosed on as a "whole". He mentions a sub-set of foreclosees, and in that context he is correct.

Everyone reads Buffet's annual letter because of the simple fact he has had an annual average return of 20% and an unheard lifetime return of 513,055% for his shareholders.

ATS might be the only place where someone either liberal or conservative would accuse him of being stupid.

He also doesn't blame foreclosees for the events, but rather "government, lenders, borrowers, the media, rating agencies, you name it. "

As is well-known, the U.S. went off the rails in its home-ownership and mortgage-lending policies,
and for these mistakes our economy is now paying a huge price. All of us participated in the destructive behavior – government, lenders, borrowers, the media, rating agencies, you name it.

At the core of the folly was the almost universal belief that the value of houses was certain to increase over time and that any dips would be inconsequential.

The acceptance of this premise justified almost any price and practice in housing transactions. Homeowners everywhere felt richer and rushed to “monetize” the increased value of their homes by refinancings.

These massive cash infusions fueled a consumption binge throughout our economy. It all seemed great fun while it lasted. (A largely unnoted fact: Large numbers of people who have “lost” their house through foreclosure have actually realized a profit because they carried out refinancings earlier that gave them cash in excess of their cost. In these cases, the evicted homeowner was the winner, and the victim was the lender.)

www.berkshirehathaway.com...