Insurance Support Withdrawn
Boy, I was in a rush this morning. I intended to include this in my last post.
Buffett's offer to guarantee the $800 billion of municipal bonds backed by MBIA, Ambac, and FGIC is off the table.
It seems to me that tax revenues are falling much faster than expected in some areas and I think it might be a bad idea to be blindly insuring munipalities. The other problem is that strips of homes that have no owners living in them are costing cities extra money because they are attracting squatters and crime. These are not universal problems at all, but I would tend to think there will be a rash of bankrupcies exceeding previous data. Somewhere else I read there were quite a few municipal bankrupcies after the housing bubble the preceded the great depression.