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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (28912)	1/31/2008 8:16:59 PM
From: TobagoJack	Read Replies (1) \| Respond to of 218068

just in in-tray quote there's short covering in financials, retailers and homebuilders today. the trigger? MBI lost $18,60/share this quarter, compared to an 'expected' $2,97 (so much for the value of WS earnings forecasts - something to keep in mind if one deems the market 'cheap' on a 'forward p/e') , and then proceeded to tell fibs about how it deserves to keep a triple A rating. yeah, right ( its bonds now yield 20%.). attached Pershing's most recent open letter regarding MBI's transparency issues. snips: "All of MBIA's CDOs of ABS and CDO-Squareds from 2005-2007 are identified by name, information MBIA has been unwilling to disclose to date." "The data distinguish among subprime, midprime, Alt-A, and prime RMBS collateral within CDOs, material distinctions that MBIA and Ambac have failed to provide in their disclosures." emphasis mine. they don't properly disclose anything, but we're supposed to just take them at their word? (note the wide gap between expected and actual losses - this must at least in part be due to the opaqueness of their disclosures to date). regardless of short term market gyrations on account of their spinning of the facts, what remains is the conclusion that we face unprecedented systemic risk until the issue is resolved one way or another. unquote