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| I have been reading a great deal about the bond insurers, and there is a very interesting story developing about MBIA, the largest insurer. If their rating drops below AAA, the #$%^ is going to hit the fan. Both Senior and DAve have said that this thing is far worse than it appears. I guarantee that if this downgrade occurs, the Dow will sell off worse than it did the Tuesday morning after MLK day. I am bullish grains here, but there is too much uncertainty out there to be too bullish short term. If the debt is not insured, the banks eat it all. I am including a link that to the most current story about an individual who has seen this coming since 2002. It's a good read. The second link is an overview of what is going on in general with the insurers.
http://www.bloomberg.com/apps/news?pid=20601109&sid=a7.NpGwa19TY&re...
http://www.reuters.com/article/bondsNews/idUSWNA816220080131?pageNu... | |
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The next bomb that will be dropped
