Warren Buffet spoke today during Berkshire Hathaway's annual meeting. He made a point to mention that Subprime defaults are being made worse by securitization (The process of creating a financial instrument by combining other financial assets and then marketing them to investors). "Once you package those things and sell them through major investment banks, discipline leaves the system," Buffett said. As taken from the report at Marketwatch: "Subprime borrowers have been missing their first and second monthly payments recently, he noted. "That shouldn't happen. Securitization has made the problem worse," he added. A slowing housing market has triggered turmoil in the subprime mortgage business this year. Legislators have been discussing possible new regulations to deal with the crisis, including making investors in mortgage-backed securities more responsible for future delinquencies."