Warren Buffett was summoned yesterday to testify on the role of credit ratings agencies in front of the Financial Crisis Inquiry Commission. How did he do?
Commission vice chairman thanks Buffett for coming. Buffett replies: "Thanks for the restraining order." On the housing bubble: "In 2006, I was not sitting there thinking the housing bubble would get as large as it did and that it would burst. If I did, I would have sold my stock." "In this particular case I would say they made a mistake that virtually everybody in the country made. The entire American public eventually was caught up in a belief that housing prices could not fall dramatically. Very very few people could appreciate the bubble." On issuer paid model for rating...
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