Stocks Rally, Rates Higher On Buffett Bailout

Warren Buffett said this morning that his company Berkshire Hathaway has offered to reinsure up to $800b in muni bonds currently backed by troubled firms MBIA, Ambac and FGIC. Stocks are rallying sharply at the cost of a deep bond sell off. Mortgage bonds are down 38 basis points and Treasury bonds are off 75 basis points, sending mortgage rates up by about 25 basis points.

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