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Bond Insurers About To Default

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  • Bond Insurers About To Default

    Another financial crisis is in the making. The insurers of the subprime loans cannot cover the defaults.

    Dec. 20 (Bloomberg) -- MBIA Inc. fell the most since 1987 in New York trading after the world's biggest bond insurer disclosed that it guarantees $8.1 billion of collateralized debt obligations that investors say have a greater chance of losses.

    MBIA, Ambac Financial Group Inc., and other insurers are being reviewed by credit-rating companies on concern they don't have enough capital to cover potential losses stemming from mounting downgrades of the securities they guarantee
    And for a very negative forecast:

    The hidden bond insurers used by Wall Street firms are in the news, especially ACA Capital and MBIA. Implications are huge, with monumental ripple effects.

    Finally on Wednesday this week, the bomb hit. Debt rating agency Standard & Poor lowered the ratings on Ambac and MBIA to NEGATIVE.

    My contention is that the entire US financial engineering contraption is being dissolved, a crumbling pile of wreckage, with evidence of fraud throughout the structure.

    The threat to the entire banking system has never been this great since the Great Depression.

  • #2
    Re: Bond Insurers About To Default

    Nice. Where will it all end? I don't think we've seen a situation like this before. The Great Depression was a totally different creature. If our banking structure goes, then there is a possibility that vast amounts of the real estate market will go.

    The health care industry is in shambles. I didn't realize just how bad it was until I started investigating some things through my wife's HMO. It's bad. Health insurance as we know it will change drastically in the next months and years. I think this is the biggest campaign issue and no one seems to have a clue other than to say that it is a big problem.

    No duh.

    How do you plan to fix it? My son and I have had extensive discussions about the methods that other countries use and none of them will seem to work here. The entire system is build on pure greed and massively inflated prices.



    • #3
      Re: Bond Insurers About To Default

      Originally posted by TorahTips
      The entire system is build on pure greed and massively inflated prices.
      Say it ain't so!

      Seriously, there is a very, very broken healthcare system in the US. I don't think anyone doubts that at the root of the brokenness (is that a word?) is greed.

      Obviously the healthcare system is an entity "of the world" and that which is "of the world" is by default, broken.

      I wonder if the big "reset" button that is about to be pushed will be the ushering in of the actual final days or if we have a while yet and it will be a major upheaval in our lives. If the former, we've not much to be concerned about other than sharing the gospel with as many as we can and if the latter, we've not too much to be concerned about other than preparing as well as sharing the gospel with as many as we can.

      Prepare? Get out of debt if any of you have debt. Stop buying on credit. Pay cash. Imho, don't save in US dollars because the central bankers are devaluing it as fast as they can. Who wants to save something that is going down in value? One might "save" a car by repairing it in order to make it last longer but that is one's car and one has total control over decisions concerning that car. We have zero control over the devaluing of the US dollar and cannot save it; so don't save it. Use it to buy something going up in value.

      I won't say much more about preparing concerning carnal things. The single biggest and by far the most important preparation one can make, as a believer, is to be certain that all is well within. We must be in a place where we can weather any storm by being content and at peace. We often may think we are there ...... until someone or something pulls the rug out from under us. Just be in prayer, in the Word and in fellowship. Fellowship beyond dinner together and a nice time socializing. Nothing wrong with those things, but there NEEDS to be something deeper within the Christian community. We need to enter into the fellowship of our Lord.

      1 Corinthians 1:
      *God is faithful, by whom ye were called unto the fellowship of his Son Jesus Christ our Lord.

      Well, over an hour has lapsed between the verse and this sentence. I have to stop here ..... aren't ya glad .......

      The church is on Earth to save souls from a lost world, not to save the world from lost souls.

      Man learns about history, not from history. To learn from history requires wisdom. Cut off from God, he has none, so history repeats; no new thing under the sun.

      I saw ten thousand talkers whose tongues were all broken - dylan

      Psalms 122:8 For my brethren and companions' sakes, I will now say, Peace be within thee.