In his appearance before a panel looking into the causes of the financial crisis, Warren Buffett says Moody's should not be singled out for blame.
Buffett concedes that "looking back," Moody's should have recognized there was a housing bubble and not given such good ratings to what turned out to be disasterous investment vehicles.
But, he says, almost everyone in the country got caught up in "the greatest bubble I ever saw." He includes himself in what he calls a mass delusion. "I was wrong on it, too."
He compared rising housing prices during the bubble as a "narcotic" that affected everyone's reasoning power "up and down the line."
As a result, he rejects suggestions that Moody's needs new management.
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In contrast, Buffett says there should be a "huge downside" for the CEOs and directors of companies that need a government bailout to avoid collapse.