High hopes for Buffett’s testimony

Warren Buffett was called to testify in front of Congress today. He was hauled there against his will and made no opening statement. The reason he was called to testify is to forcibly share his thoughts on Moody’s and S&P, the ratings agencies which lie at the heart of the housing bubble.

In typical Congressional fashion, I expect the committee to challenge and charge the panel about their mistakes. It is painful to watch clueless Congresspeople attack executives. Buffett, who is Moody’s largest shareholder, has nothing to do with Moody’s business decisions, so his presence is merely for show.

My hope- which I highly doubt will come to fruition- is that when the committee points the guilty finger at the ratings agency’s (which they will) and Buffett responds with something about how Congress enabled Fannie and Freddie had FAR more to do with the bubble than he. Oh, how I wish just one person would push back against these stupid hearings. Wouldn’t it be great for the world’s greatest investor to chastise Congress’ stupidity?

I can dream anyway.