Friday, February 29, 2008

Man Behind the Curtain

After only, what four days, the man behind the curtain has revealed himself screaming I am here, I am here!!! Massive efforts by the rating agencies, the government, and investment banks to hog tie and keep the curtain closed worked for less than 100 hours.

http://www.marketwatch.com/news/story/bond-insurers-active-ross-buys/story.aspx?guid=%7B93E9EDF4%2DAC27%2D4938%2D85B9%2DED7C2C052C7E%7D&dist=hplatest

Shares of bond insurer Assured Guaranty rose Friday after revealing that investor Wilbur Ross will provide up to $1 billion to strengthern its business, while rival Ambac Financial Group's shares fell on a broadcast report that a deal to boost its capital has hit a snag

http://www.marketwatch.com/news/story/aig-shares-fall-after-firm/story.aspx?guid=%7B86090D0D%2DCC68%2D441F%2DBFEF%2D619E7505BA99%7D

The fourth-quarter result included a pre-tax charge of $11.12 billion from a net unrealized market valuation loss related to the super senior credit default swap portfolio of the company's AIG Financial Products Corp. (AIGFP) derivatives unit.

AIG is important because these credit default swaps that MBIA acts like are okay forced AIG to take an $11.12 billion loss on. Hmmm

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