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March 03, 2008 – Comments (4)

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.

 

4 Comments – Post Your Own

#1) On March 04, 2008 at 12:40 AM, camistocks (< 20) wrote:

Quoting from the article: On Monday, Buffett said his earlier offer was now "not on the table."

"We tossed our hat in the ring and they tossed the hat back," he said

In December, Buffett started his own bond insurer, Berkshire Hathaway Assurance. He said that unit had insured about 206 municipal bond issues in the last three weeks.

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#2) On March 04, 2008 at 1:04 AM, DemonDoug (92.48) wrote:

The most nauseating thing is the AAA rating of MBIA and ABK.  I'm seriously sitting here and my stomach is churning at the insanity of it.

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#3) On March 04, 2008 at 7:22 AM, devoish (99.07) wrote:

DD,

Hope you feel better,

Regards,

Devoish

Long PG. (Pepto bismol)

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#4) On March 04, 2008 at 8:50 AM, dwot (97.03) wrote:

lol devoish...

I agree Doug, it is sickening the way these agencies along with the rating agencies were allowed to continue when the whole lot ought to have been shut down for corruption. 

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