Friday, January 18, 2008

Monolines explained

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 (754 views)
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One thought on “Monolines explained

  • 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.

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