Munger Says Bankers’ ‘Megalomania, Insanity’ Fueled Bubble

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Charles Munger, the vice chairman of Berkshire Hathaway Inc., said Wall Street and mortgage sellers drove real-estate prices to unsustainable levels through reckless bets.

“The bubble in America was caused by some combination of megalomania, insanity and evil in, I would say, investment banking, mortgage banking,” Munger, 87, said today at a conference in Pasadena, California.