Buffett defends rating agencies

[Omaha Steve]

Source: Omaha World Herald-AP

NEW YORK (AP) — Investor Warren Buffett on Wednesday defended credit rating agencies that gave overly positive grades to mortgage-related investments before the housing bust. He said the agencies were among many who missed warnings signs of the crisis.

"They made the wrong call," Buffett acknowledged.

But he said he counted himself among those who failed to foresee the collapse of the housing bubble. Buffett called it the "greatest bubble" he had ever seen.

"The entire American public was caught up in a belief that housing prices could not fall dramatically," Buffett told a congressionally chartered panel investigating the financial crisis. Had he known how bad it would get, Buffett said he would have sold his company's stake in Moody's.

Read more: http://www.omaha.com/article/20100602/NEWS/706029849#buffett-defends-rating-agencies

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Photo with FULL story at link.

[DJ13]

1. Translation

"Ha ha, I've got mine, fuck you losers"?

[liberation]

3. No kidding....

... the sad part is how many people, esp here in DU, fall for this douche's "old affable grandpa" act.

[valerief]

4. You got that right. nt

[necso]

2. A related link:

http://www.marketwatch.com/story/profit-drive-said-behind-inadequate-rating-reviews-2010-06-02

Two quotes therefrom:

"A recent investigation found that 91% of AAA-rated, residential mortgage-backed securities issued in 2007 and 96% of similar securities issued in 2006 have now been downgraded below investment grade to so-called junk status."

...

"However, Buffett (a major shareholder of Moody's stock) said that he believed the rating-agency business model is threatened in some way, and that legislative efforts to change their model as well as public criticism is threatening their once 'bulletproof' stock prices."

[proudohioan]

5. How in the HELL could anyone fail to foresee the collapse of the housing bubble?

Jeezus, and this is an example of our 'best, brightest and most talented'? This is what kind of 'genius' the 'industry' justifies 'earning' their excessive wealth?

Hell, if all it takes are brains and foresight, I should be a trillionaire!

How in the HELL could anyone think that the housing bubble could be sustained? Especially in an economy that is bleeding jobs and income?

HELLO?????