Tags: buffett | Gross | Downgrade | S&P

Clash of the Titans: Buffett, Gross, Miller Spar Over Downgrade

Tuesday, 09 Aug 2011 08:45 AM

Investment legends Warren Buffett and Legg Mason's Bill Miller clashed with Bill Gross, co-head of Pimco, the world's largest bond fund, over the Standard and Poor's downgrade.

Buffett and Miller say S&P was wrong while Gross says the agency was right.

"I think S&P has demonstrated some spine; they finally got it right,” Gross tells Bloomberg, noting that the U.S. has "enormous problems" in terms of its debt pile.

Miller, meanwhile, tells Bloomberg separately that S&P was "precipitous, wrong and dangerous" in cutting the ratings to AA+ from AAA, adding that since the U.S. is the "most productive economy in the world," the dollar remains the sole global reserve currency.

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Buffett sides with Miller, saying he would give the U.S. a "quadruple A" rating and adds the downgrade was bad for the economy.

"Financial markets create their own dynamics, but I don't think we're facing a double-dip recession. Clearly what stock markets do have is an effect on confidence, and this sell-off can create a lack of confidence," Buffett also tells Bloomberg.

Federal Reserve officials are set to meet and markets are watching to see if the Fed will do anything in wake of the meltdown in global markets, such as lower interest rates or shuffle asset maturities in ways that would keep interest rates low and bring investors back into the stock market.

"Speculation is growing that Chairman Ben Bernanke may do more to help restore confidence with possibly another round of asset purchases," says Philippe Gijsels, head of research at BNP Paribas Fortis Global Markets, in Brussels, according to Reuters.

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Investment legends Warren Buffett and Legg Mason's Bill Miller clashed with Bill Gross, co-head of Pimco, the world's largest bond fund, over the Standard and Poor's downgrade. Buffett and Miller say S P was wrong while Gross says the agency was right. I think S P has...
buffett,Gross,Downgrade,S&P
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2011-45-09
Tuesday, 09 Aug 2011 08:45 AM
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