patm1954

Thoughts on Ambac Bailout, MBIA, Berkshire's Muni Bond Backing

Thank you for the voice of reason in this sea of insanity. The last hour rally on the Ambac/MBIA news/non-news was pure manipulation in my opinion. Buffett is quietly taking over the bond business due to his stellar reputation for reasonableness and solid balance sheet. I wish I understood what kind of money is involved in 112 bond auctions in two days of business, but I am sure Buffett will make much more in the future and deserves to. Investors pay for this insurance to be compensated in case of failure of the municipality--and the profits deserve to go to someone who can back up the claims if necessary.