fxtrader07

The Emperor (Mr. Ackman) Has No Clothes

Well, are you really so naive to think that Ackman ever believed the stuff he was telling the public day after day? All he needed to get done was to create enough fear and panick. Not to be right with his claims. I would certainly not be surprised to learn that he actually was now long the monoliners.
That being said, the picture is not as rosy for ABK and MBi as you might think. They will be able to deal with their mistakes in the CDO business, sure. But their main business was insuring muni-bonds and if you look at the precarious state of the us economy and the quick deterioration of federal and municipal budgets (collapsing tax revenues!) this spells lots of trouble. I am cautiously long mbi/ABk, mostly senior debt, but expect substantial deductions from current book value estimates over the next 4-5 years.