Wednesday, February 13, 2008

Feb 13, 2008

MBIA and others would much prefer reinsuring the part of their business that is at greater risk for future losses. They would like to pay a smaller premium than what Berkshire has suggested. Buffet only wants to ensure policies on the $800B of muni bonds not the mortgage piece. Insureres would pay a steep premium and prob not accept terms of 150% of premiums to Buffet.

A plan is better than a genius with no plan.

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