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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: forceOfHabit who wrote (100686)	1/15/2009 9:13:20 PM
From: Hawkmoon	Respond to of 110194

Yeah.. it's a good question as to what will be required for at least the majority of humanity to be lifted out of abject poverty to a status where they aren't waking up wondering where the next meal is coming from. And certainly it would create tremendous strain upon the global resource base were everyone to have 2 cars and a 3 bedroom home. But it's certainly something that every human being deserves and should be facilitated. As for financials, I'm trying to figure out the historical record as to whether the insurance sector recovers before the banks. Logic would seem to dictate that banks will only loan when there is sufficient financial surety available to hedge their loan portfolios. Either that, or they have to hold even MORE capital reserves against their loan portfolio. Rumour has it that Dinallo and Obama are proposing a bulking up of the monolines in order to backstop the municipal bond markets (since the Treasury is forbidden from buying or insuring them). This has been something that was suggested back before the first TARP as something that would provide the biggest bang for the buck, especially since many of these insurers were victimized by faulty (fraudulent?) ratings of the assets against which they wrote insurance. So I'm watching stocks like ABK and MBI, as well as RDN for some sign of recovery. Would like to believe in AIG, but I think they may be more handicapped than the others. Hawk