posted on Dec, 29 2007 @ 08:21 PM
Guess we'll finally see the end of the "Buffet is buying this company"stuff that's been going on for months now. I love it, truly brilliant. The
implications of this are truly big with the credit crunch, SIV, and sub-prime stuff going on. One must remember that Buffet did not make his fortune
in a bull market like has been running the past couple of years. The irrationally optimistic have been praying for Saint Warren to step in and do
something since the turmoil in the markets has started. Well the Oracle appeared and stepped right on the throat of and industry that got too greedy.
Just as the bond insurance industry is starting to fret about their AAA credit rating, a new player, backed by Berkshire's Billions, with lots of
insurance experience (Geico and General RE) is about to enter the market with an AAAA credit rating. When, not if the current bond insurers lose their
AAA credit rating we will see some real fireworks in the market with carryover to the financials, maybe Buffet is looking at certain financial, but by
making this move he almost guarantees he'll get them cheaper in a few months.