wunderhof

Why We're Still in the Early Innings of the Bursting of the Housing and Credit Bubbles - And Implications for MBIA and Ambac

When the current calender period CDS's expire, can't the insurers decline to re-up? Wouldn't MBIA, Ambac, and the others be able to argue for rescinding the current swaps since the buyers materially misrepresented the default quality of the objects of the coverage? That won't make the bad loans good but it would avoid the catastrophic effects of the bond insurers collapse.