Buffett couldn't forsee housing bubble - PowerStrokeNation : Ford Powerstroke Diesel Forum
 
LinkBack Thread Tools Display Modes
post #1 of 3 (permalink) Old 06-02-2010, 08:31 PM Thread Starter
Moderator
 
PsRumors's Avatar
 
Join Date: Feb 2010
Location: Cartersville, GA
Posts: 4,042
Buffett couldn't forsee housing bubble

At hearing, Buffett defends rating services - U.S. business- msnbc.com

Quote:
Billionaire 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.
Quote:
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.
Surely he is just protecting his peers!?

Everyone I know was aware there was a bubble and that sooner or later it would pop.

Our county has a family median income of roughly $49k. Through most of the '90s most neighborhoods being built were in the $90k to $140k. In the later 90's the neighborhoods became more and more expensive though the income was staying relatively flat.

By the early 2000's we had more neighborhoods being built in the $500k + range than below $200k and by 2004 all new developments were $350k +.

How could one not see the bubble if this was taking place all over America?

I travel all over GA and AL and our county was not alone.

'97 SCLB 4x4, 3.55, D60 w/ TrueTrac, 6637, Banks Techni-cooler, BTS Trans, Tru-Cool 4921 Trans Cooler, 1.0 exhaust housing, no ebv, 3" DP, Straight Exhaust, E-Fuel, TW tunes, International WP, 203*, Isspro Gauges
PsRumors is offline  
Sponsored Links
Advertisement
 
post #2 of 3 (permalink) Old 06-02-2010, 09:18 PM
Gandy Dancer
 
AK Gandy's Avatar
 
Join Date: Feb 2010
Location: In The Villages
Posts: 5,972
Re: Buffett couldn't forsee housing bubble

I am sorely disappointed in Buffett's wiggling on this issue.

Even though he owned as much as 20% of the rating company Moody's.........I would have hoped he would go on the record as saying they didn't so their job properly.

Especially since he seemed to be concerned about our financial system........................... when he originally warned Congress in 1982 about derivatives

Buffett 1
Quote:
In the 1982 letter obtained by Forbes, Buffett waxed philosophic on the dangers of derivatives. His analysis was remarkably prescient. The kind of wisdom one might expect from him today. But as has been clearly demonstrated over the past two years, Buffett is less concerned with sound public policy than with protecting his own interests.
and in his companies 2002 Annual Report, he once again warned about them.

Buffett 2
Quote:
I view derivatives as time bombs, both for the parties that deal in them and the economic system.

I guess this comment, from my fist link, pretty much sums it up.

Quote:
The bottom line is that Buffett is more hard-nosed capitalist than financial straight-shooter.
Do you still think (referencing the other thread) that we need less regulations ..................and that businesses will do the right thing out of the goodness of their hearts?

Never have so many politicians, screwed so many Americans...just to make one black person lose his job.
Quote:
Originally Posted by Binderpower View Post
I can be possible.
AK Gandy is offline  
post #3 of 3 (permalink) Old 06-02-2010, 10:38 PM Thread Starter
Moderator
 
PsRumors's Avatar
 
Join Date: Feb 2010
Location: Cartersville, GA
Posts: 4,042
Re: Buffett couldn't forsee housing bubble

Quote:
Originally Posted by AK Gandy View Post
Do you still think (referencing the other thread) that we need less regulations ..................and that businesses will do the right thing out of the goodness of their hearts?
I don't think businesses should be looking at Moody, Buffett or anyone else for their decisions. If it looks to good to be true it probably is. If it looks like a get rich quick scheme it probably should that a scheme.

Things would slow way down if businesses were to do their own research into what a sound investment truely is. Slowing things down would be a good thing.

As for the rest, you can look back at that other thread.

'97 SCLB 4x4, 3.55, D60 w/ TrueTrac, 6637, Banks Techni-cooler, BTS Trans, Tru-Cool 4921 Trans Cooler, 1.0 exhaust housing, no ebv, 3" DP, Straight Exhaust, E-Fuel, TW tunes, International WP, 203*, Isspro Gauges
PsRumors is offline  
Reply

Quick Reply
Message:
Options

Register Now



In order to be able to post messages on the PowerStrokeNation : Ford Powerstroke Diesel Forum forums, you must first register.
Please enter your desired user name, your email address and other required details in the form below.

User Name:
Password
Please enter a password for your user account. Note that passwords are case-sensitive.

Password:


Confirm Password:
Email Address
Please enter a valid email address for yourself.

Email Address:
OR

Log-in










Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes
Linear Mode Linear Mode



Posting Rules  
You may post new threads
You may post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

 
For the best viewing experience please update your browser to Google Chrome