I missed this in last month's financial news:
Buffett isn't betting on the health of cities, states, and towns
anymore. Berkshire Hathaway has backed out of a number of credit-default
swaps insuring $8.25 billion in municipal bonds, sending shivers of
doubt through investors who've been hungrily buying such bonds, the Wall Street Journal
reports. The insurance-like derivatives, which Lehman Brothers
purchased in 2007, would require Berkshire to pay a large sum if the
governments in question defaulted.