gabe borenstein

Assured Guaranty: Vulnerable to Continued Bond Market Troubles

With FED's recent intervention,implicitl... recognizing aaa rating of the subprime "paper".....accepting the 'questionable"instrume... to be swapped for the treasuries,all of the bond insurers can finally sit back and relax.The FED is not allowing any financial institution to go under and is guaranteeing every institutional component of our system.Only shorts with the position in the financial sector will have a financially painfull experience.The FED had acknowledged the issues and is addressing them .The FED has no P&L but a mandate to stabilize economy and the markets-The FED will prevail and financial sector of the stock market will have uprecedented rally in the period ahead be it MBIA or Ambak .Current psychology is not synonymous with the economic reality.