oldlures1

MBIA and Ambac: Monoline Malaise

I don't blame MBIA for refusing the move the funds. It seems like a reasonable (and sensible) business deicision, particulary under the circumstances.

This whole charade that has played out over the past six months reminds me of the well-known Peanuts scene where Lucy holds the football for Charlie Brown. Charlie continues to trust Lucy; and when he doesn't she manages to convince him that this she'll really hold. So, they reach an agreement; she'll hold the football and he'll kick it. But everytime, Charlie gets prepared, runs down the field, gives it his best shot and, at the last minute, Lucy moves the ball. In this case, Lucy is played by the rating agencies, and MBIA is Charlie Brown. MBIA is tired of Lucy's lies and misguidance, so he's taking his ball and going to play somewhere else.

MBIA will get AAA status again; either by virtue of a new AAA-rated start-up, or it'll regain it's original AAA status in 12-18 months by virtue of reduction in its liabilities. And in the meantime, despite all the unsubstantiated garbage you read from the biased propogandists trying to manipulate, policyholders will be just fine.

Again, I don't blame them; not at all.

The Monolines Need $200 Billion? No Way

Reinko - what does $50 trillion in US debt have to do with monoline exposure? You lost me.
Regardless, my point was that it is refreshing to see something quasi-positive, if not sensible, regarding the plight of the bond insurers. I don't know Mr. Brown, nor do I know his background, but I'm in his camp on the validity (or lack thereof) of Gross, Egan and Ackman's numbers. In fact, their combined temperment on the subject verges on fanatical, to the point I question if they individually have exceedingly large short positions on the Insurers(?).

Is Mr. Brown correct in his allegations and position on the matter? *shrugs* Only tell will tell, I suppose.

The Monolines Need $200 Billion? No Way

Hallelujah! Someone that hasn't succomb to the rampant Chicken Little mentality.
Thank you for your insight. Keep it coming!