Gtarras

Buffett: Why Insure Munis When You Can Buy Them Instead?

"Given all these reasons to buy bonds rather than insure them, I do wonder what’s going to happen to the monoline market. Historically, it’s been a license to print money — but it might be a very long time before it re-emerges."

I am sure when/if things get to normal, BHAC will switch back into insurance, as all of the 5 points will turn in favor of a wrap vs. cash investment.

Einhorn vs. Buffett on Moody's

If Einhorn thinks that all internal and international regulatory requirements for banks, pension, and other funds (pretty much whole financial system) should be easily brushed aside and can be done, then good luck to him.

Like Tom in the above comment said, the NSRSOs are an easy target. They do serve an important purpose though, as a regulatory glue. Just like democracy, the system sucks, but thats the best we got. A lot of arbitraging of ratings is going on. But thats what makes the system complete, by filling in the cracks.

Of course nobody on the street in their right mind would rely on the CRAs. At the same time, people on the street realize that they serve some other purpose. Like I said earlier, they lay out the foundation. All other managers out there fill in the cracks. It will not change.

Einhorn is simply talking his book. Similar to Ackman. Cant stand those guys personally, because they are the two-faced sharks really, but they are what makes the system complete.

2 Concerns with Michael Lewis's Review of Buffett Book 'The Snowball'

Its always been a great time to bet against Michael Lewis..