Buffett warns loss of confidence in EU risks run on banks

Warren Buffett has warned European leaders are not doing enough to reassure markets they will do what it takes to solve the debt crisis, risking a run on the region's banks.

Speaking to CNBC, the chairman of Berkshire Hathaway said the markets have lost confidence in politicians to take all necessary steps to fix the sovereign debt crisis plaguing Europe. “Europe has found a fundamental flaw which is that they cannot print money. When you have a loss of confidence, that begins a run on sovereign debt and banks. “It is very tough to stop a run – it takes widespread belief that the authorities have the capability to stop it. We believed Bernanke, Paulson, and the President of the United States when they said that in September 2008, even though the issue was...