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  • Municipal Bonds: A Clear Case of Buyer Beware [View article]
    This is an end of days scenario.
    Yes there are financial problems for the states,
    but if they do not pay interest on their obligations,
    whom would ever lend them money again ?
    The Feds will end up involved no matter what,
    either bailing them out to pay off their bonds, or lending
    them cash when they can no longer raise new issues.
    Nov 11 12:31 pm |Rating: +2 0 |Link to Comment
  • Ambac: Now It Warns of Bankruptcy? [View article]
    I am former Ambac employee.
    They are not too big to fail,
    and effectively they have already failed.
    Went from $90+ to a penny stock,
    and no prospects for selling any new product going forward.
    All revenue is recognition of past sales that are realized over
    the life of the insurance contract, no new sales, no prospects
    for new sales. Their who business model hinged on having a AAA rating, which they lost.

    I am not a disgruntled ex-employee, I actually loved working there,
    but all is lost IMO. Best that can happen is if a financially sound firm had bought them, as Berkshire H had been rumored, but unless someone like that comes along, they are done IMO.
    Nov 11 10:00 am |Rating: +1 0 |Link to Comment
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