BuffettAgain and This Is A Brilliant Move (Again)

Warren Buffett who has repeatedly been rumored to be buying a piece of this distressed mortgage company or that distressed bond insurer has finally announced a move and as usual it is much smarter than the rumored moves.
The municipal bond market which has been suffering from collateral damage to the subprime mortgage fallout because the formerly AAA rated bond insurers are all suspect and thus the municipal bonds they insure are effectively uninsured now. This "worthless insurance" is causing all kinds of munis to be rerated downward. Some of the problem is explained clearly by Accrued Interest in this post:

What is a Tender Option Bond (TOB)?

(Alternative title for long-time readers: There's a meteorite that hit the ground near here. I want to check it out. It won't take long.)

And here is Bloomberg on the Buffett announcement:

Dec. 28 (Bloomberg) -- MBIA Inc. and Ambac Financial Group Inc., the two largest bond insurers, fell in New York Stock Exchange trading after billionaire investor Warren Buffett said he plans to start a rival company to guarantee municipal debt.