Tuesday, Nov 13, 2007
The Great Ratings Debacle
Market Oracle: Next Phase of the Financial Markets Credit Crunch Crisis
The big three rating agencies have forever issued stellar, triple-A ratings to four specialized insurance companies — Ambac, MBIA, CIFG, and FGIC.
As long as bond insurers like Ambac or MBIA were triple-A … then … the thousands of tax-exempt bonds and CDOs they insured were also triple-A.
If the insurance companies get downgraded from AAA then so do the bonds they insure - phase II of the credit crunch
Posted by sold 2 rent 1 @ 02:23 PM (379 views) Add Comment
2 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. alan said...
Are you sure it's Phase 2?
I thought Phase 2 was going to be when the auditors check the Level 3 securities held by the banks (Citi, Barclays,etc) which they've claimed can't be easily assesed. Goldman Sachs has twice the value of loans in Level 3 than it's capitalisation, which should be interesting.
Sorry, I think the insurance companies will be phase 3.
2. planning4acrash said...
Do we have a summary of phasis on wiki?! Worth a debate on discussion board!