Not buying it. Not buying the Buffett investment story. Anyone would love to take the muni business from Ambac (ABK - commentary - Cramer's Take) and MBIA (MBI - commentary - Cramer's Take) because it is a fabulous annuity stream. It's pristine and easy and leads to gigantic profits.
The only way you would allow Buffett to take the good part over is if you pre-packaged a bankruptcy around the rest or put them in runoff mode, because there is nothing but losses that are being insured -- so much of the most toxic paper has guarantees by these two over-their-heads stooges.
Cramer: Not Buying the Buffett Deal
I don't care much for the voluntary program for defaults for the stretched homeowners that Bank of America (BAC - commentary - Cramer's Take) and Citigroup (C - commentary - Cramer's Take) has floated this morning. Hollow voluntary gestures instead of the FHA getting involved.
I reiterate that until the government takes over some of the liabilities of these insurers and gets warrants, and until we have a real FHA guarantee and lower interest rates for refinancing, neither trouble will disappear.
At the time of publication, Cramer was long Citigroup.
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