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Dinallo Comes Down on Monoline Bears

The facts actually do support Tom's thinking. Look at the latest deal.
Ambac has written contracts down booking losses of $1.4 Billion. These are the same reserves the Ackman and the bears say are way to low. Even some posters above say the losses are worse than disclosed.
However, Ambac just settled those $1.4 Billion in "inadequate" reserves for $850 million. That is only 60% of what they booked as losses. They were also the worst of the worst contracts.
If Ambac settles the rest of their CDO exposure they will end up booking $Billions in gains and end up with a clean Muni Bond insurer.
The facts do not look like an insolvent insurance company to me.

Ambac is also still paying a common dividend. Why does the regulators not block this if Ambac is insolvent. Well...simply they are not...

Dinallo Comes Down on Monoline Bears

The other investigation underway is the Connecticut AG looking in S&P and Moodys rating criteria and Moodys relationship to Berkshire Hathaway. I would think Buffett is above reproach, but I would not be surprised if some Moodys people engaged in monkey business so they would look good to their largest shareholder.

Berkshire: Bond Market Not Always Omniscient - Especially Lately

To add to my earlier comment...(He enters the bond insurance business while proclaiming the business model dead. He calls credit default swaps crazy, then goes out and writes a ton of them.)

Both these statements by Buffett raised the prices of these type of contracts, allowing him to profit more once he started writing them. How is this really any different than Ackman having a plan to "save" Fannie and Freddie that just happens fits his hedge perfectly to maximize his profits.

Berkshire: Bond Market Not Always Omniscient - Especially Lately

Yes, Berkshire's reputation, which is based in large part on the integrity of the CEO.

That said, I do think Buffett now having established his god-like status uses it to his advantage when he sees fit.

He enters the bond insurance business while proclaiming the business model dead. He calls credit default swaps crazy, then goes out and writes a ton of them.

I love how he has conned the SEC into letting him buy up all stock he wants of any company without having to disclose it until he is done buying. How does that benefit anyone but Berkshire?

MBIA Waits for Good News to Announce Bad

So according to you: a reserve which is only an estimate of a possible future loss (that may never happen) is very real; but the change in the value between currencies on a date certain is not real? I guess I will not be investing in any of your mutual funds. You do not know which side is up.

Moody's Affirms Ambac, MBIA Ratings - Losing Any Last Shred of Credibilty

You are mistaken Reggie.
Ambac bonds are rated AA, three steps below AAA.
The Moody's AAA rating is Ambac's claims paying ability, not Ambac's own debt rating.
Now you could question the AAA claims paying ability. If you do keep in mind that Moody's largest shareholder is Warren Buffett. If would look bad for Warren that the day he announces he is entering the bond insurance business, a rating agency he has influence over trashes his two largest future competitors.
I guess you are really saying that Warren Buffett no longer has a shred of credibility.