DISQUS

AMERICAblog: Arson rates on the increase as mortgage crisis spreads

  • Andrew · 1 year ago
    "The first panacea of a mismanaged government is inflation of the currency. The second is war. Both bring a temporary prosperity; both bring more permanent ruin" … Ernest Hemingway
  • Andrew · 1 year ago
    As evidence of the story that Chris posted, it wasn't a surprise that the Federal Reserve placed another 75 billion in tax payer money to stem the financial hemorrhaging. Ambac underwrites a lot of the mortages on reasl estate that is now abandodned and Emporor Bush continues to fiddle while the US burns.
    Ambac Financial (NYSE:ABK) lost more than a third of its stock market value on Wednesday as the bond insurer warned that potential losses related to mortgage-backed securities could reach more than $3bn, vastly more than expected.
    The company's ability to retain its crucial triple A credit ratings is again under question amid concerns that credit ratings agencies may require Ambac to raise a new round of fresh capital. (The fact that they even have it is the equivalent of a financial blasphemy in taking the name of creditworthiness in vain.
    Tamara Kravec, analyst at Bank of America, said: "It is realistic to assume that Ambac could fall short of ratings agency capital requirements.
    "Concerns over the prospects for new business and a cloud of uncertainty over the magnitude of future potential [mortgage] losses will likely continue to put pressure on the shares."
    Shares in Ambac fell to their lowest level. By midday in New York, the shares were down 35 per cent to $3.90. MBIA (NYSE:MBI) , the biggest bond insurer, was also hit, and its shares fell nearly 24 per cent to $10.15.
  • GrahamCrackerDC · 1 year ago
    Correction. In my opinion, it's not a "Republican-created problem." The mortgage foreclosure crisis, banks failures, etc. have all occurred since Democrats took over Congress in January 2007.
  • Andrew · 1 year ago
    GrahamCrackerDC.....Both parties are culpable as it took both to look the other way while banking regulators didn't do their job.
  • jr · 1 year ago
    another symptom of the disease called supply side economics