john haskell

A Bank Led, Bank Insurer Bailout?!

Prescient 11 above does a good job of summarizing the "what me worry" line of argument. The "monolines" are doing great because muni issuers pay them fat fees for doing nothing (and prescient11, despite his moniker, assumes this state of affairs will continue indefinitely).

"Prescient" then goes on to assert that Citi is "happy to hold" Ambac insured assets - (what?!) and then argues that anyone who does not have full information (which ABK and C of course are not releasing) "is an idiot."

Mr Prescient- all you need to know was revealed to you in Stan O'Neal's last CC as head of MER in which he said they took 30%+ writedowns on AAA rated secs. ABK and MBIA insure far more such paper than MER ever owned. It's just a matter of time. Rage, rage against the dying of the light if you wish, but these companies are going out and they are going out hard.