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Strategies & Market Trends : Guidance and Visibility

AAPL 278.79

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Dec 5 9:30 AM EST

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To: bumblin bob who wrote (177101)	8/19/2008 8:11:22 AM
From: Hawkmoon	Read Replies (1) of 208838

Bob, that's what I can't figure out.. I'm not well versed enough with the Mortgage insurance industry to understand how the MI's are benefitting from Freddie and Fannie's problems. I just have this gut feeling that one of the foundations of any economic sector is a healthy insurance industry necessary for distributing business and event risk. Thus, without a healthy mortgage insurance industry, I'm not sure how we get out of this mess. Either the government insures this mortgage risk, or the private sector. Thus, I'm almost wondering if the Feds are going to work out some kind of hybrid arrangement with the MI's in order to work with FRE/FNM to distribute that risk to the private market first, rather than the government (taxpayer) absorbing it all. And that's going to require a well capitalized MI sector with AAA ratings restored to the major players like ABK, PMI and others, including the one I hold, RDN (probably one of the soundest of the MIs from my research). I'm very open to opinions on this. Hawk

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