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S&P in their downgrade announcement notes that the mark to market losses on the insured CDOs and RMBS in the investment portfolio exceed reality, but now they don't think the market will recover under 2009 0r 2010.
Sep 16 05:42 am
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All Comments by Tom Armistead »AIG Downgrades Should Create an Endgame [View article]
I find it impossible to conceive that these fantasy losses can form the basis of the destruction of a large, strong business, essential to the functioning of our financial system.
However, a lot of what is happening lately suggests that common sense no longer applies in the market.