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Financial Crisis Inquiry Report


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this is what mr rodriguez has to say,... cash is king!!!


Two of the 12-billionpound

elephants that aren’t in that wonderful book of semi-fiction, The Financial Crisis Inquiry Report ,

are Fannie Mae and Freddie Mac. In order to reform and rebuild, a lot of toes will have to be stomped




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page 206...brilliant....


"When Moody’s Corporation went public in 2000, the investor Warren Buffett’s

Berkshire Hathaway held 15% of the company. After share repurchases by Moody’s

Corporation, Berkshire Hathaway’s holdings of outstanding shares increased to over

20% by 2008. As of 2010, Berkshire Hathaway and three other investors owned a combined

50.5% of Moody’s. When asked whether he was satisfied with the internal controls

at Moody’s, Buffett responded to the FCIC that he knew nothing about the

management of Moody’s. “I had no idea. I’d never been at Moody’s, I don’t know where

they are located.” Buffett said that he invested in the company because the rating

agency business was “a natural duopoly,” which gave it “incredible” pricing power—

and “the single-most important decision in evaluating a business is pricing power.”

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