Rubens Morse

Ambac and Its Muni Bond Issue Worries (As I Foresaw)

Reggie, Ambac may be illiquid but is is not insolvent. It could be driven to bankruptcy, not because of MTM losses, which are just US GAAP fiction, but by rating agencies downgrades and loss of confidence by investors and municipalities. By the way, in my opinion they should never have been AAA in the first place.