TuTu, yeah, interesting timing for Warrens announcement eh? Not...

TuTu, yeah, interesting timing for Warrens announcement eh? Not that he HAS bought, just that he's thinking about it. I reckon the bond insurers might be the next big thing in the usa markets as the implications of their insolvency or near insolvency comes clearer. MBIA dropped 21% last night I think. What will happen if bonds sell off big time now? The dropped quite a bit last night. The news said it was because they are overbought, basically, but i reckon it has more to do with the possibility of the insurers going under. Risk premiums on the rise in the bond market = higher rates = ??? and nothing much the Fed can do about that one. Warrens comment may be their only shot in the locker unless a sovereign fund steps up, and they won't come cheap as we saw with Citi (11% yield on convertibles! Wow!)