Warren Buffett: Worst is over for Wall Street, but "a lot of pain left to come" for individuals

[Amerigo Vespucci]

May 3 (Bloomberg) -- Warren Buffett, chief executive officer of Berkshire Hathaway Inc., said the global credit crunch has eased for bankers and the Federal Reserve probably averted more failures by helping to rescue Bear Stearns Cos.

``The worst of the crisis in Wall Street is over,'' Buffett said today on Bloomberg Television. ``In terms of people with individual mortgages, there's a lot of pain left to come.'' Buffett was interviewed before the Omaha, Nebraska-based company's annual meeting, attended by about 31,000 people.

Buffett, the world's richest man according to Forbes magazine, said the Fed acted properly when it arranged a $2.4 billion bailout in March of New York-based Bear Stearns by JPMorgan Chase & Co. The billionaire said he turned down the opportunity because he lacked enough capital and time to grasp the situation. More failures and wider panic may have resulted if the regulators didn't halt the run on Bear Stearns, he said.

``The worry was that there would be contagion; it was a very real worry,'' Buffett said. ``If Bear Stearns had gone, the next day, somebody else would have gone. It could've been a very, very, very chaotic situation.''

http://www.bloomberg.com/apps/news?pid=20601087&refer=home&sid=aeLirKvQi5jw

[crimsonblue]

1. I hope Obama makes Warren his SecTreas...

Buffet has kept his humimilty and down to earth values, living in the same house for nearly 50 years. I respect the hell out of this man!





^Buffett's home

[liberal N proud]

2. I would take Buffett's advice over all other so called Wall Street experts

They are making their money advising us. Buffett made his through investing.

[On the Road]

3. The Week to Buy

was the week of the Bear bailout. Now it's May and traditionally a lousy six-month period for stocks. But we will see -- it's good to have Buffet's input.