2011-08-08

The fall of Warren Buffett continues...

Schiff - Gold up $27, Dow Futures Down 276, Buffett Wrong
When asked about Warren Buffett’s comments where he said S&P made a mistake by downgrading US debt Schiff responded, “Well he owns a big chunk of Moody’s doesn’t he? Moody’s hasn’t lowered their rating, so somebody is mistaken, it’s either Moody’s or S&P. It stands to reason that Buffett would say his competitor was mistaken rather than himself.

What’s important, people are criticizing S&P, and I think it’s kind of funny because they are criticizing them for missing the subprime crisis. Well, why not criticize Moody’s and Fitch for the same reason, and what makes us think that their AAA rating is right?

So, potentially the real mistake they’ve made is to have had the US government at AAA so long because they (the US) are just as AAA as those mortgage backed securities that went under.”

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