Thursday, June 3, 2010
Warren Buffet: “Greatest bubble I’ve ever seen in my life”
Warren Buffett defends credit rating agencies
"The entire American public was caught up in a belief that housing prices could not fall dramatically," said Mr Buffett "Rising property prices were a narcotic that blinded investors in all walks of life".
Posted by doomwatch @ 11:37 AM (2564 views)
10 thoughts on “Warren Buffet: “Greatest bubble I’ve ever seen in my life””
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a saver says:
The credit agencies should have known better and it’s outrageous that Warren Buffet is defending them.
Anyone should have known that mortgages on overvalued property that people could just walk away from could not possibly merit an AA rating.
Along with banks and government agencies who were paid to keep things safe, the credit agencies completely let everyone down.
And are any of these people paying for their mistakes? Doesn’t look like it.
mark says:
Warren Buffet is a major shareholder in the ratings agency, of course he would defend them
Eric Pebble says:
This continual denial – “We didn’t see it coming” – is a MASSIVE, MASSIVE LIE.
inbreda says:
is it me or is the bbc viewopint slowly shifting since the election?
estrader says:
“Rising property prices were a narcotic that blinded investors in all walks of life”…Maybe Warren Buffett should have listened to Peter Schiff! I used to have a great deal of respect for Warren but now I’m convinced he is a very big part of the lying, manipulating elite.
http://www.youtube.com/watch?v=jj8rMwdQf6k
icarus says:
Buffett isn’t known for his ethical investments. Coca Cola is accused of intimidation (and that’s putting it very mildly) of workers in its bottling plants in Colombia. Goldman Sachs was at the centre of the financial crisis in many ways. And the ratings agencies have always been unscrupulous.The top three rating agencies make up an oligopoly, created and sustained by the S.E.C. since 1975. Their traditional means of compensation switched in the 90s from investors who paid for their services to the corporations whose securities they were charged with rating. This created cutthroat competition among the three for market share from the corporations paying them and they became much less concerned with the integrity of their ratings than with the goodwill of their banker clients.
These clients were always ready to bully their way to AAA ratings. A May 2006 message from a UBS banker to a Standard & Poor’s employee threatened to take its business to competitors: “Heard you guys are revising your residential mbs rating methodology – getting very punitive… heard your ratings could be 5 notches back of Modys (sic) equivalent. gonoa (sic) kill your resi biz. may force us to do moodyfitch only cdos (sick)!†Then there was that S&P internal e-mail “Ratings agencies continue to create an even bigger monster – the CDO market. Let’s hope we are all wealthy and retired by the time this house of cards falters.â€
Rating agency employees who refused to cheat on behalf of their banker clients were swiftly moved to other accounts. Richard Michalek, a former managing director in Moody’s structured products derivatives group, testified before the Senate that, because he was unwilling cater to their wishes, managers told him he was “not welcome on deals†involving certain banks – including Goldman Sachs Group Inc., UBS AG and Merrill Lynch & Co.
Moody’s managing director Yuri Yoshizawa testified that they quietly moved analysts to other accounts because “we felt that our analysts were being abused.â€
The whole game was fixed and if anybody was in a position to know this it was Buffett.
gone-to-colombia says:
B0llocks – He just joined the establishment
Crunchy says:
Warren Buffet?
Is he the kind of really clever investor Goldman Sachs are?
GS dumps all BP shares just 2 days before the ‘accidental’ oil spill. They kept their other oil shares BTW.
GENIUS! 🙂 Ha ha! “Get on the right track baby.”
ReCAPTURE ~ ‘foreseen in’
fjcruiser says:
VI…..
paul says:
is it me or is the bbc viewopint slowly shifting since the election?
I think so. I’m just finding it difficult to distinguish old BBC from new. Care to elaborate?