“ That subject line isn’t a phrase I invented. It was a phrase used by Deutsche Bank’s CEO, Josef Ackermann. He was referring to the coming downgrades of the major bond insurers, which he said was “comparable to subprime”. Bond investors stand to lose $200 billion should MBIA Inc., Ambac Financial Group Inc. and Financial Guaranty Insurance Co. forfeit their AAA grades because of declines in mortgage-backed securities they insure, according to data compiled by Bloomberg. Since financial institutions have been choking on the $146 Billion of declared losses so far, another $200 Billion is a very big deal. Where will it all end? How much more is coming? If you allow me a little latitude, I can tell you that the bond-insurer downgrades are merely the 3rd act of a 7 act play. And that’s assuming that the financial infrastructure holds up under the pressure.
Daily Kos: The approaching economic ‘tsunami-like’ event
