Last night came reports from Bloomberg that Berkshire Hathaway was looking to buy the Residential Capital mortgage unit. The report noted that Berkshire Hathaway offered to buy Residential Capital LLC's mortgage unit and that Buffett aims to replace Fortress Investment Group LLC ( NYSE: FIG ) as "the initial bidder at an auction for the bankrupt company's most-valuable asset." Court filings on Monday showed that Berkshire Hathaway would trump Fortress and Ally in this aim. Private jets and mortgage assets? This would beg the question… "Just how bad are things in reality?"