Wall Street flourishing form Buffett investments by Lenka Filipova

Warren Buffett bestowed an offer to bond insurer. The help is to be aimed to ease some of the concerns in the credit markets. He said in an interview on CNBC that one of his companies Berkshire Hathaway Inc. was going to offer a second level of insurance on the public bonds up to $800 billion. This new proposal is offered to bond insurers including Ambac Financial Group Inc., MBIA Inc. and Financial Guaranty Insurance Co., known as FGIC. This tender brought about a slight relief to some investors. However, Buffett drew attention to the fact that the reinsurance deal would only be provided to municipal bonds and of course, not to those which are running at least a sign of risk or a trouble. This will definitely reinforce the market and give it back necessary confidence. In addition to this, the investors feel affirmation thanks to Buffett's bid. Despite of their confidence, Buffett revealed that one firm had already refused the deal and that he was still expecting the answers of the other two. However, the analysts admonish that investors should not jump ahead as the serious problem, concerning U. S. retail spending, is emerging soon. Len Blum, managing director of Westwood Capital, told that the stock market was about good days on one hand, but expressed his doubts about the coming crisis in the financial sector, on the second hand. He emphasized that even if there are bounteous investors, such as warren Buffett, "the financial sector is still really sick."

by Lenka Filipova for PocketNews (http://pocketnews.tv)

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