Berkshire Hataway General meeting: live...Warren Buffet on Too Big To Fail

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Berkshire Hataway General meeting: live...Warren Buffet on Too Big To Fail

2:31 P.M. The matter of 'too big to fail'

Getting back to a previous discussion that Buffett had, on "too big to fail." He makes it clear that he believes it's still going to happen -- "There will be too big to fail institutions 10 years from now," he says flatly.

He also quips that Fannie Mae and Freddie Mac are "too big to figure out," but says that finding a proper solution there is better than finding a fast one.

Ultimately, Buffett believes in government intervention. But such a rescue must come at cost, perhaps by requiring directors to forfeit five years' worth of fees, for instance.

Munger says that a discussion of bubbles and crashes "isn't one of evil, but of stupidity." That said, he blames unyielding devotion to theories of economics and other fields as a contributing factor. And this being Munger, he takes a shot at finance as being an especially big culprit.