The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Smiling Bob who wrote (93543)	11/1/2007 1:31:18 PM
From: Perspective	Read Replies (1) of 306849

ABK/PMI/MBI - somebody help me out here. So these companies are clearly in trouble. They've accepted first loss position on a bunch of debt going bad. However, unlike a bank, they don't have a regulator that steps in to shut them down, right? Unless there's some acceleration of liabilities, they should continue to function until the cash flows they must replace from failed loans deplete their equity. Do they have some liabilities that could potentially shut them down within the year? Their stocks seem to be acting that way. Perhaps they are responding to the fear that the ratings agencies will be forced to admit their insurance is not the AAA panacea - can't be the same level of safety as U.S. debt. Then their future business disappears, just as their liabilities start flowing? BC

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