The Oracle said what?

BUFFETT: Well, from everything I've seen of the Abacus transaction, which was the one the SEC put out the complaint on, I do not see a problem with that transaction. We're a bond insurer, ACA was a bond insurer, MBIA, FGIC, Ambac, and all those companies started out insuring municipal bonds and then the profit margins got squeezed in the municipal bonds and they started drifting over and insuring other structured deals and so on.

Full Transcript: http://www.cnbc.com/id/36915020

Will somebody tell me why the person who called derivatives "financial weapons of mass destruction" is defending the making of a shitty derivative CDO that did cause destruction? Calling the very kind of derivative he was against "bond insurance" is something I'm not buying.