Friday, Jan 18, 2008
Monolines explained
BBC: All aboard the monoline Titanic
"If the monolines lose their own triple A ratings, then the bonds they insure will – automatically – lose their premium ratings. Bloomberg estimates those losses would be $200bn."
It's like having car insurance from an insurer that can't pay out.
This is what Jim Cramer was ranting about on CNBC (see post here late last night).
Posted by happyrenterz @ 02:56 PM (462 views) Add Comment
1 Comment
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1. lvmreader said...
Most people don't understand the Secondary and Tertiary effects of this. It is ARMAGEDDON. CDS spreads (measures of the perceived risk of insuring a company) are widening - implying increasing risk of default.