Ishortyou

Bill Ackman's Pershing Square: Portfolio Update

well looks like the housing market is trying to find a floor, as soon as the floor is reached the MBS/CDO's will have its floor as well, that will give them some appreciation and decrease the amount of liabilities insured on them.

Selling the Short Sellers Short: Another Sign of Trouble

Unless the government doesnt stabilize the housing market by stimulating demand to get rid of those overwhelming housing inventories the recovery is going to be slow.
And please stop giving building permits, those counties need to get the picture straight.

Selling the Short Sellers Short: Another Sign of Trouble

there are much more risks that we are not aware of, and it's kind of difficult to asses them all at once and come up with a plan, I guess thats why we should always think about how much money we could loose in our investments or plays.

Selling the Short Sellers Short: Another Sign of Trouble

It is certain that AMBAC and MBIA need to remediate their book of business in all their subsidiaries from risky liabilities specially CDS-RMBS-ABS-SIVs of uncertain value, if I were them I certainly would wipe out of my books any liability related to the housing market period. They also need to save all the cash possible to improve their book value, forget about stock buy backs, dividends, etc., just save money period. Once a solid book is attained their triple A rating would be reinstated and write new low risk book of business like the public bond ones. Looks like they are doing these but it will take time because it has to be done on a case by case scenario. They can also open or extend a line of credit to make sure to continue operations, dissipate doubts and prevent further downgrades from rating agencies.This coming back will be the best advertisement to recruit new clients.

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