You have taken Buffet's comments out of context. He wasn't refferring to naked shorting. You shouldn't get your info from message board posters that don't know what they are talking about.
The theory about Buffet is taken from some statements he made about CDO's (Credit Derivitives) where they rewrote his comments on a message board post which changed his comments to apply to naked shorting because he compared the CDO derivitaves to "swimming naked" and of course the nut cases decided this referred to naked shorting.
The original comments are as follows:
During a live appearance on CNBC, Buffett said ripples of the credit crunch are continuing to cause problems in financial businesses and the economy.
Earlier this year he said a financial crisis reveals which players have been "swimming naked," because the tide goes out. That picture has worsened along with the crisis.
"We found out that Wall Street has been kind of a nudist beach," said Buffett, who is chairman and chief executive of Berkshire Hathaway Inc., which is based in Omaha.
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