Buffet defends Goldman, discusses economy
By Gary Linnell
ProWEB Wire (Industry News)
Warren Buffet continues to defend Goldman Sachs Group Inc, saying the investment bank's actions don't warrant the level of criticism they have received.
At the annual meeting of his company, Berkshire Hathaway Inc., Buffet said he has seen nothing in the bank's behavior to justify the intense criticism.
"It's very strange to say, at the end of the transaction, that if the other guy is smarter than you, that you have been defrauded," he said. "Any bond insurer that is making a decision about what to insure and what to charge for it should not care a whit about who is on the other side of the transaction."
Buffet owns $5 billion of Goldman preferred shares with a 10 percent dividend.
In addition, he Buffet warned policymakers not to artificially stimulate housing sales, saying it could curtail economic recovery.
"What would bother me is if we were to overstimulate them, and create a permanent overhang. I want to have a sustainable recovery, and I don't think you're going to have to wait more than a year for that."
He also added his support for Federal Reserve Chairman Ben Bernanke, saying "there's no one in the United States that I know of whom I would rather have running the Fed."