howling wolf

Help for the Guarantors - From an Unexpected Source

Mr. Brown,

the point you raise has been mentioned in previous analyses -- insurer
payments will occur over a long timeline and MTM accounting can disconnect from reality esp in these panicked markets. But other factors can easily come into play -- regulators and those holding the guarantees are apt to get more concerned as capital declines and could force events. Over reliance on the fact that payments are deferred across a very long period is akin to stating my O2 requirements for a week -- all very interesting but becomes irrelevant if I'm denied air for an hour..