J.P MORGAN RIDES AGAIN

Return with us now to those thrilling days of yesteryear. The Lone Ranger rides again! A MUST CLICK.

Market chatter all over the place that the Muni Bond market is next. The firms that issued default insurance on muni bonds that never default -- have been buried by more than a trillion dollars worth of derivative bets, more than 10% of which have gone bad.

That $130 Billion worth of CDO/CDS exposure makes it highly unlikely that anyone is coming along to rescue this group of risk-loving, derivative- ignorant, technically-bankrupt insurance managers.

It's time for the Loan Buffet (left).

Buffet jumps in.

Billionaire Buffett, 77, transformed Berkshire over four decades into a $200 billion investment and holding company that gets about half its profit from insurance units including Geico, General Re and National Indemnity. Berkshire has a AAA rating and more than $40 billion in cash. Its new unit will avoid the mortgage-backed bonds and other structured securities that led to losses at other guarantors, Jain has said.

Remember that JP Morgan saved the country back in 1907 when he used his personal fortune to basically rescue the U.S when a nationwide run on the banks was underway. Teddy Roosevelt got so infuriated that one man was bigger than the country that he created the Federal Reserve to "show him." Hang on folks. This is a sacred cow turning into a smelly pig. Big Picture Link