Munger: Megalomania, Insanity Caused Financial Collapse

Charles Munger, vice chairman of Berkshire Hathaway (NYSE: BRK-A), is known for telling it like he sees it. At a Pasadena conference on Friday, he had a few words to say about financial sector collapse of 2008.

"The bubble in America was caused by some combination of megalomania, insanity and evil in, I would say, investment banking, mortgage banking," Munger told the audience at a "Morning with Charlie" event.

He also took swipes at the accounting industry, former Lehman Bros. CEO Dick Fuld and Federal Reserve Chairman Alan Greenspan, whom he said had "totally overdosed on Ayn Rand at a young age."

Of course it is not the first time he has spoken bluntly. Earlier this year he said Greek citizens "don't want to pay taxes or do much work." Back in 2009, he called cap and trade "monstrously stupid."

He did have some positive words at Friday's meeting, which apparently will be the last of its kind. He praised Coca-Cola (NYSE: KO) stock as one of his favorites, and he looks favorably on Elizabeth Warren, President Obama's appointee to oversee the Consumer Financial Protection Bureau. Munger also stood behind Berkshire Hathaway's investment in struggling Chinese auto maker BYD.