Buffett: Wall Street believed own PR

SAN FRANCISCO, Dec. 12 (UPI) -- U.S. investor Warren Buffet criticized Wall Street for "believing its own PR" about the investment vehicles underlying the mortgage foreclosure crisis.

"You can't turn a financial toad into a prince by securitizing it," he said at a San Francisco fundraising luncheon for Sen. Hillary Rodham Clinton, D-N.Y.

The 77-year-old billionaire, who said he supported both Clinton and rival Democrat Barack Obama, D-Ill., admitted Tuesday that even after scrutinizing funds that package up subprime mortgages, he found them confusing.

Buffett said one can make more money "selling toxic waste to customers," but that doesn't mean it's a good idea, the San Francisco Chronicle reported.

"Wall Street started believing its own PR on this -- they started holding this stuff themselves, maybe because they couldn't sell it. It worked wonderfully, until it didn't work at all," he said.

Now, "Wall Street is reaping what they've sown," Buffett said. "It will sort itself out over time with a fair amount of pain. We have an economy that can take it."