Wednesday, May 14, 2008

I Was Waiting for This
MBIA Inc. questioned Wednesday the latest warning about bond insurers' ratings from Moody's Investors Service, arguing that it has less exposure to the riskier mortgage securities that the ratings agency singled out.

MBIA is undertaking the same tactic they did with Fitch. Try and destroy the messenger.

As shady and shoddy as S&P and Moody's are, believe me they do not want these companies rated AAA anymore than I do. It weakens their brand. Like I said yesterday I think the Moody's release was just a shot across the brow to test the waters and see how the markets would react and see if they can't put some pressure to force the companies to raise more capital.

The soap opera is nowhere near over.

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