If there was any really positive news today to justify the Dow and S&P 500 gains, it escaped me. It looks as though today’s gains were attributed to Warren Buffett’s “rebuffed” offer to bail out bond insurers Ambac Financial Group Inc., MBIA Inc. and Financial Guaranty Insurance Co. But, can this be considered good news for the economy? I don’t think so.
When things get desperate, one will try to put a positive spin on just about anything. How did Wall Street react today to Warren Buffett’s offer, which likely won’t materialize? Just watch.
Comments 1
In case anyone’s wondering why the credit rating of bond insurers is important, and all the hoopla about a Warren Buffett bailout, there’s some good information to be found about recent failed municipal bond reset auctions at two good blogs:
1. Accrued Interest
2. Indextown
It’s very interesting, and also enlightening.
Posted 12 Feb 2008 at 11:20 pm ¶Post a Comment