Buffett buying WFC

Buffett's Subprime Bets

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In fact, Berkshire Hathaway has been buying. For years, Berkshire has been sitting on a huge mound of cash, but it's now starting to deploy that money. Berkshire's purchases have been consistent with Buffett's statements that he doesn't expect a depression. For example, the company bought Burlington Northern Santa Fe (NYSE: BNI) -- a cyclical railroad that would definitely be affected by a slowing economy.

Berkshire is also looking for bargains among the lenders. It's been purchasing Wells Fargo (NYSE: WFC) and US Bancorp (NYSE: USB), two companies with excellent balance sheets and conservative management. While these firms did do some subprime lending, their balance-sheet strength should take them through this crisis.