The financial quote du jour goes to Warren Buffett. Here he is on the growing problems among mortgage insurers trying to unwind their complex swaps and contracts:
"We lost over $400 million on contracts [at General Re in 2002-2006] that were supposedly" safe and properly priced, "and we did it in a leisurely way in a benign market," Mr. Buffett says. "If we had to unwind it in one month, who knows what would have happened?"
Bets on whether we’re about to find out?