Chris White

Bond Insurer Break-Up: Beware Unintended Consequences

The NY govt probably just wants to try and separate what is arguably toxic, from what is secured against someone's taxes, even if those are real estate based. Don't they hold muni bonds as well as insure them? Wouldn't it be much cleaner if the revenues from healthy taxes were not used to provide transfusions to the toxic stuff? They might also want to do something with the structure before the CDO mess becomes a public issue like sub-primes did, don't you think? Looks like it might be a whole lot bigger and messier. Some tails get to be like that if they're not cleaned up often enough.