What's Up On Wall Street - Andy Cinko, Bloomberg News

Let's go to new York and talk -- our friend Andy singled in Bloomberg News site do an antique. Good morning -- -- fine thank you. That -- there's a big story in today's Wall Street Journal about Warren Buffett terminating. His municipal bond credit default swaps. And I as I read through it it sounds like he's canceling. He is he's not very optimistic about just some of our municipalities being able to meet their debt obligation exact correct interpretation of his. Eight and a half billion dollar wager. Well -- -- it's thin skinned friend that the Wall Street Journal is making based on they cancellation of that contract and and that could talk to a couple of. Buffett watchers. You know he yeah he wasn't sharing of more than eight billion dollars of municipal debt from fourteen Dayton but included Texas and California and Illinois now. It would be limited contact was made with Lehman Brothers in 2007 Lehman Brothers is still in bankruptcy and now. This -- CDS contract is being canceled while Lehman is still in Chapter Eleven though mr. Buffett was contacted by the journal he did not. Respond or give any comment so it again it's not clear the reasons why he would cancel this -- the afraid of more default but he would have to pay. And took the opportunity to get out or perhaps. You know -- he is looking at. The insurance rates now -- the 2007 which are hire him because they've made more money now in doing the same thing it's just -- you know it's just. The hard to know it's certainly seen that maybe he's more concerned though about municipal debt default. Which by the way are very rare to continue to be very rare. Well yeah it is rare because it's cheaper for the town to raise taxes than it is to default on their debt barring any -- generally they're clear they're a lot better off the municipalities in the states. Are better off meeting their financial obligations -- you declare bankruptcy in two EE can't issue new debt so it. Correct -- you gonna be on the hook for years for a decision like that to not pay -- -- Euro bond side mr. Obama put. Yet most states and cities decide in the -- just pay. All right. I wanted to ask you about -- -- -- here and his -- stepped down from his run for the senate seat in -- can you check the entry numbers and see with the odds are on him must opened up -- -- -- is curious what you -- out of New York -- you know I'm I'm hearing rumors that he's going to be out by 3 o'clock this afternoon. Well -- new ad out politicos reporting that he has put -- and apologizing for his comments and asking for forgiveness on. Unclear what sort of reaction. There is to the add -- leave the comments have a elicited this. Called for him to step down across the the spectrum so he'd looked like he is very much yeah. On his way out at the moment Barry it would be shocker I think if he stayed in the race but you know stranger things have happened this is politics. All right well -- we appreciate your time thank you very much for joining us here welcome -- that TNT cinco from Bloomberg News in New York journeys today on the financial exchange interest in June when I watched the numbers I looked -- -- the poll numbers he -- at twelve point lead. Over Matt Cassel. Before those comments yet I haven't seen any poll numbers since then I can't you got to log in and -- have to get you have to find in trade TI can't find current navigating in trade and analyze both trying to break but it's. And that doesn't mean it's accurate either it's just a no one barometer of a known. Yet I get exciting news for have a surprise for June night -- go right ahead thrown on me you know I went to if he did director of marketing went to. Our person purchased more gas cards yesterday -- and they went to their the local gulf gas station which was out of gas cards. So then the director of marketing went to CDS. And -- to director marketing. Acquired CDS. Cards gift cards for CBS. So that's what I'm -- all -- -- your. Own because because somebody ran out of gas guard him. Maybe you're on -- -- to believe that they ran out of gas I I thought -- arts I think you're gonna say. I'm the chief marketing officer bought gas card that's -- yeah I mean they I was gonna say that's why they're not the chief financial the other because you're gonna pay anathema and. And I went Nathan and I can tell you -- the day EU with the I got couldn't believe it. And they. You know how to process that did not had a. It is you have to eat don't usually have to have cash to buy those gas next to him because I'm an -- international nose done and on the main news what they use credit card. But anyway CBS. Had cards available so we will be giving away VC BS gives turnout. I guess -- Stomping question to both of you Harry gonna do this dizzy I don't think you're really a gas pump Dell's going to be appropriate so would -- your trigger and it's only switched the entire -- it and I I want to know what are you are giving away people anymore they'll that was what -- CBS. CBS the. Well ever since we had the conversation a couple of weeks ago about people calling in sick yeah I've noticed a lot of people calling in sick lately yes amid British Goobuntu sneezing and coughing going on and I like that isn't gonna need to pay the prescription -- there's CBS and not a little they'll come up -- -- -- -- Mom was I think it might have to these guys -- -- is NBC I love doing this I don't tell her in any no we didn't know any thing so now. They have this scrambled during the next 3040 minister now or how they're gonna give away the CBS gift card and and you don't want them to -- yes. -- sponsors of the -- morning you know now do well I don't know if they -- on the and that's a little hostility I'll let you figure all that. -- thing. Now are okay oh good I like that I like he has gone up next we're rejoined by Paul Goldstein from IHS rated talk about quantitative easing. There's a lot of rumors that they'll be another round of quantitative easing which is basically the Fed buying more bonds. And that could occur in November some speculation that total current September I don't think it will. We'll talk to Paul about that and a lot more right here on the financial exchange.