HowardIf you're not in it, monoline- Shania Twain
If your not ready, monoline- Shainia Twain
A crashing monoline;
It's the same old game;
A pyramid scheme that seemed so keen;
So honey come confess;
About your weird MBS;
Is it good stuff, or just insured;
By a new bankrupt;
Hat Trick Letter reports on ACA;
If you thought your monoline was safe that way;
If you thought your monoline was fine;
If you thought that monoline was fine;
You're out of here!
Here is the link from Hat Trick Newsletter on the monolines.
Monolines are a good chunk, $3.5 trillion, of the Credit Derivative Market of $45 trillion, and they seem ready to go up in smoke about January 3rd- January 17th. They are the insurers of various bonds that up till now have looked good on the books.
--"Monoline" insurers, which comprise a pyramid scheme insuring radioactive collateralized debt obligations (CDOs) and mortgaged-backed securities (MBS), as well as a large proportion of the nation's municipal bonds, are cratering; their collapse would accelerate the ongoing collapse of the world financial system. This may generate a shock effect as early as the first two weeks of January.
In 1993-95, the monolines began insuring leveraged and increasingly risky MBS and CDOs. That financial paper which underlay the MBS and CDOs may be worthless garbage; but once the monoline insurers insured that paper, its paper would be rewarded with an AA or AAA rating by the rating services. But the monolines don't have the resources to really pay out coverage on the massive amount of paper they've purportedly insured.
ACA is one of the big four monoline insurers. The Dec. 20 issue of the Hat Trick Letter reported, "ACA is widely called the 'garbage can' for Wall Street, where tremendous losses are concealed from stock investors, corporate bond investors, debt rating agencies, and bank regulators." How can they insure anyone, S & P has them down to a CCC level, from AAA?
pix at Really Long Link
And really great deals at the T-Shirt Queen.
