chris vale

Berkshire: Bond Market Not Always Omniscient - Especially Lately

Response to Plenty: Mr Buffett is frequantly misquoted. He has never called credit default swaps crazy, though he has been critical of derivatives in more general terms. However, he has been very clear that derivatives can be mispriced, and when they are, he is prepared to act accordingly. He has never proclaimed the bond insurer business model dead, there is no factual basis for that assertion whatsoever. I respectfully disagree that the SEC has been "conned". Mr Buffett simply files a petition that anyone can file and which is granted to Berkshire based on the simple fact that people really will follow his lead. But, it truly does benefit no one but Berkshire, and perhaps the SEC should not allow it.