Berkshire CDS Spreads

[dcollon]

http://www.bloomberg.com/apps/news?pid=20601087&sid=aHc37dvgJRn4&refer=home#

 

[ubuy2wron]

I think this puts to rest any question on is BRK subject to a bear raid . I am more than just a little peeved that the usual gang of mobsters are playing their typical games I suspect the players are exactly the same as those who attacked Prem and FFH hopefully they end up with the same results. I watched the Larry Kudlow interview of Doug Kass and just wanted to throw-up.

[JAllen]

I think the bet(s) are circular.  If Berkshire has to pay out significantly or enough to jeopardize its financial health than the chances are that Berkshire is already doing horrible because the rest of the economy/world is already doing absolutely horrible (like G.D*3).  The picture that one must paint to see stock markets half as high as they are now in 15-20 years is one that hasn't existed I don't believe. 

 

So, really if Berkshire has to pay out nothing else will matter anyways and dollars probably won't have purchasing power.  The purchase of Equit index puts from Berkshire implies that Berkshire will be the last one standing.  Who knows, maybe that will be the case?  :o

 

 

[Guest JackRiver]

They really need to clamp down on this CDS garbage.  Like life insurance, I don't think you should be allowed to purchase CDS against bonds you don't own.  This is so obvious to me that I'm having a hard time understanding why the regulators allow this to continue to go on.  (As most of you are already aware Charlie or Warren mentioned something about the life insurance analogy first)

 

The market in CDS is such a sham of false transactions and colluding counter parties that it's almost a joke that the market actually responds to the BS information about risk it purportedly spits out.  The CDS market is the insurance equivalent of a auto insurance company sticking you with an AIDS needle, charging you an insane premium because you are at a high risk for contracting AIDS, and finally informing you that AIDS is not covered by your policy.  All this because you showed up to buy car insurance.  I know this is stupid, but that's the market in CDS.

 

Yours

 

Jack River

[Guest JackRiver]

Sorry I forgot to finish that off.  Now go out and try to buy life insurance or health insurance after that especially if the life/health division of your auto insurer red flags you as an AIDS patient with the sniffles.  This is crazy crazy crazy.  I know FFH made some coin off CDS, but at this stage the naked CDS has got to stop.

 

Yours

 

Jack River

 

 

 

[MartinWhitman]

Immelt Meets Buffett in Market Inflamed by Credit-Default Swaps

 

http://www.bloomberg.com/apps/news?pid=20601087&sid=a3n09_G7DlxU&refer=home