Monkey Wrench

Buffett's Soggy Logic on Guarantors' Ratings

Buffett did the same thing with default swaps. He kept mentioning in the media how crazy risky they all; and then low and behold his annual report shows huge activity in default swaps. He media comments raised the spreads on these contracts, which then serves his interests. He could charge more for them, reducing his risk and increasing his profits. All compliments of the business news media for free.

Buffett's Soggy Logic on Guarantors' Ratings

Buffett and Wilber Ross are getting into bond insurance and have been all over the news commenting on how the other companies (their competition) in this business should all be bankrupt. Their lawyers must have advised them how far they can go without getting sued to brought before the SEC. Using their goodwill with the investing public to legally trash the competition stinks. And they are getting it all for free, including promoting their new businesses. It is just news. How much is all this free advertising worth if they had to pay for it.??