Quickly, this is just a glimpse into Warren Buffett's annual shareholder meeting for Berkshire that draws about 40,000 investors per year. It is being held this weekend.
"What Cyprus demonstrates is an old truth: You can't trust bankers to govern themselves," Munger told CNBC. "A banker who is allowed to borrow money at X and loan it out at X plus Y will just go crazy and do too much of it if the civilization doesn't have rules that prevent it."http://finance.yahoo.com/...
Seeing parallels between Cyprus and Iceland, Munger called it "stark, raving mad" and added that "the bankers would have been doing even more if it hadn't blown up. I do not think you can trust bankers to control themselves. They are like heroin addicts."
Sounds like a good supporter of bank regulations, doesn't he? Munger is Buffett's right-hand man and they obviously think alike.
"I think the long term investor is not too much affected by things like the flash crash. That said, I think it is very stupid to allow a system to evolve where half of the trading is a bunch of short term people trying to get information one millionth of a nanosecond ahead of somebody else," Munger said.Same link.
"It's legalized front-running. I think it is basically evil and I don't think it should have ever been allowed to reach the size that it did," he said. "Why should all of us pay a little group of people to engage in legalized front-running of our orders?"
Goes to show us that the richest guys in the world are no friends of Wall Street bankers.
Now, anyone who knows me knows I am all for tough bank regulations. So even though I don't think banking is a criminal endeavor I do enjoy this type of discussion.