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The Masked Tulip

Monoline Rescue?

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After the pull-back from rescuing the monoline insurers last week have there been any developments since? Surely the markets are going to just tank until this gets sorted?

Yes I think this is the key question of the week. From CNBC on Friday it looks like a massive road-block kas been encountered - and the Americans were as usual trying to schmooze it over on the report. However, if it does collapse we can expect that Black $$Day some time very, very soon.

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Until - if - this gets sorted there are just going to be big reductions in the stockmarkets. Without a rescue plan in place then the risk to all those bonds is enormous. I suspect those rescuers are just haggling for a better deal unless, of course, they are now begining to wonder whether it is worth their while funding a rescue. If they don't then it will be down, down, down for the markets.

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Until - if - this gets sorted there are just going to be big reductions in the stockmarkets. Without a rescue plan in place then the risk to all those bonds is enormous. I suspect those rescuers are just haggling for a better deal unless, of course, they are now begining to wonder whether it is worth their while funding a rescue. If they don't then it will be down, down, down for the markets.

http://markit.com/information/products/cat...ory_graphs.html

AAA now trading at 60c in Dollar. Freefall.

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Until - if - this gets sorted there are just going to be big reductions in the stockmarkets. Without a rescue plan in place then the risk to all those bonds is enormous. I suspect those rescuers are just haggling for a better deal unless, of course, they are now begining to wonder whether it is worth their while funding a rescue. If they don't then it will be down, down, down for the markets.

Rescue? Why would they need rescuing? They've just had their AAA ratings reconfirmed. Don't you trust Moodys and S&P?

p-o-p

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Warren Buffett has withdrawn his offer.

he has also just said that the US are IN a recession now.

....also "stocks are NOT cheap".

live on cnbc now.

Edited by gfromls

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They only had their AAA ratings confirmed because there was a rescue package in place. If there is no rescue package the ratings will drop and that will mean those expensive bonds that the banks hold will be worse less. I don't know why exactly they are worth less but I suspect it is that they are considered more risky if there is no insurance underwriting them.

Anyhow, at the moment it seems to me that a little old lady removing 10 bucks from an ATM machine is enough to send the US and UK stockmarkets into a pants wetting panic!

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  • 295 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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