Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: bentway who wrote (105037)	2/14/2008 1:29:20 PM
From: Think4Yourself	Read Replies (1) \| Respond to of 306849

The muni bond holders will be fine. The muni's will be isolated and premiums will not be remitted to the holding company. The muni market should settle down very quickly. The CDO's will be left with the holding companies. MBIA and ABK stock is worthless, and FGIC is about to take a massive financial hit. It may take a few weeks for the markets to figure this out. I can wait! :) There is a bad side effect to this. CDO insurance is effectively worthless. The monolines will not be able to use the muni premiums to pay the CDO claims. A big round of writedowns is coming in the financial sector!