Monday, March 3, 2008
Warren Buffett withdraws bond re-insurance plan
Warren Buffett withdraws bond re-insurance plan
"Warren Buffett said Monday that he was no longer offering to guarantee $800 million of municipal bonds backed by the monoline bond insurers MBIA, Ambac Financial Group and FGIC." Muni bonds are a falling knife why would Buffett buy now anyway. Bloomberg: Auction Supply `Tsunami' Foreshadows Deeper Municipal Losses
Posted by happyrenterz @ 11:38 AM (785 views)
5 thoughts on “Warren Buffett withdraws bond re-insurance plan”
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happyrenterz says:
Jefferson County, Alabama needs this to pay for its sewer. “About $2.2 billion of the county’s sewer debt consists of auction-rate securities. The county has experienced failed auctions on $869.45 million of the debt, causing rates to rise to as high as 6.25 percent, up from 4.7 percent.” Alabama County Is Center of Muni Turmoil as Debt Cut to Junk
happyrenterz says:
And if riots break out now The Pentagon has a Ray Gun
sold 2 rent 1 says:
I was suprised when he was offering to guarantee them in the first place.
Maybe he was offered some hidden incentives from the government, who were trying to put some confidence back into the market.
Either way, he has come to his senses now.
Stevie Dee says:
When he announced this the DJIA climbed 200+ points, utter bo++ocks!!
enuii says:
I view these as a stalling exercise to give time for damage limitation strategies to be played out. A bit like the US Cheques for everyone episode and the recent UK interest rate cuts.