Monday, November 19, 2007

Warning

Along with the implosion of the mortgage lenders, home builders and the banks there is a new kid in trouble on the block. It is the bond insurers most notably Ambac and MBIA. No one knows just how toxic the bonds are that they cover even as some toxic shock has been felt. It fact so shocking is it that MBIA is short term over sold. But technicals wont matter it they receive credit downgrades and go to zero. Right now they are looking for reinsurance themselves and trying to raise cash. Click on link. We will keep our eye on AKT. With stochastic over 80 and turning over on puking volume it could present a decent short.

http://www.ft.com/cms/s/0/b5923e8c-95fb-11dc-b7ec-0000779fd2ac.html?nclick_check=1

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