We’ve been working on nonstop for the past two weeks on a presentation entitled: “Why We Are Still in the Early Innings of the Bursting of the Housing and Credit Bubbles – And the Implications for MBIA and Ambac.” Amherst Securities provided us with some incredible – and very sobering – data that leads us to the following conclusion (see page 19):
In summary, today we are only seeing the tip of the iceberg: an enormous wave of defaults, foreclosures and auctions is just beginning to hit the United States. We believe it will get so bad that large-scale federal government intervention is likely.
Another implication, covered starting on page 57, is that MBIA and Ambac (which remain among our biggest short positions) are in big trouble.
To see the presentation, click here and, once on the web page, click the box on the right that says “Read Whitney Tilson’s Presentation on the Mortgage Crisis & the Implications for Bond Insurers”.