Subscribe to this blog's feedExcitement is growing over the prospect of a downgrade of one of the major monoline insurers. Well, 'excitement' is probably not the right word. 'Dread', maybe. 'Horrendous, paralysing dread'. Yes, that sounds about right.
Here's Deutsche Bank's Josef Ackermann waxing ackerpocalyptic: Ackermann Says Bond Insurers Threaten Debt `Tsunami'.
Pimco's Bill Gross says the bailout hasn't a hope: Rescuing monolines is not a long-term solution
MBIA redefines optimism by announcing a $1 billion share issue (who on earth is going to buy? Some public-spirited private investor who wants to shore up the system, perhaps...): MBIA Share Offering Boosted to $1 Billion
Fitch says it doesn't care how much capital they raise, if their models are flawed they're going down: Fitch: May Cut Monoline Insurer Ratings, "regardless of capital levels"
But wait! It might all be all right, says Morgan Stanley: New Bond Insurer Storyline: Downgrade Likely, But Not So Terrible.
Have a good weekend, everyone.
