Warren Buffett Takes Mortgage Lenders to Task

Warren Buffett has had a busy week. He took his $12 billion offer to reinsure bond insurers off the table, and he took mortgage lenders to task. And he has a good point. After all, with subprime mortgage debt threatening the economy, mortgage lenders have got us into quite the mess.

“But wait,” you say. “Didn’t someone have to decide to take on these mortgages?” And that’s just the point that Dan at Property Crossroads makes regarding the current mortgage mess:

 Of course, the lenders aren’t the only ones who screwed up during the housing boom. Borrowers got too greedy, stretching themselves financially to get that bigger house. Real estate agents were too greedy, too, encouraging buyers to overbid on houses that weren’t really worth what buyers were paying for them. Builders built too many houses, too quickly.

The first rule of successful personal finances is this: Exercise control in your personal finance decisions and live well within your means.