LOL, or perhaps the pirate ships ready to make sail, or the crooks in the get away car. I think, we are living in a time when Dr Evil has given The Fed an ultimatum for millions of dollars, and his cohorts are yelling for trillions:

Dr. Evil: Here’s the plan. We get the warhead, and we hold the world ransomed for…..One MILLION DOLLARS!!
No.2: Ahem…well, don’t you think we should maybe ask for *more* than a million dollars? I mean, a million dollars isn’t exactly a lot of money these days. Virtucon alone makes over nine billion dollars a year!
Dr. Evil: Really?
No.2: Mm-hmm.
Dr. Evil: That’s a number. Okay then. We hold the world ransom for…..One hundred..BILLION DOLLARS!!

very good Fed Clip from youtube: http://www.youtube.com/watch?v=3QM-PlRXNVE

The person who said this creates a huge short squeeze opportunity is behind the times. Every time Ambac and MBIA have gone up recently, it has been due to a short squeeze. It is really the only reason anyone would be long these stocks, unless they are just plain stupid.

As I’m sure you are aware, CNBC (Gasparino) got a leaked report from the rating agencies that they may downgrade as early as today.

Perhaps I’m a bit too cynical, but is this simply a way for the rating agencies, monolines, and Dinallo to put more pressure for the Big Financials to come to the table with Dinallo? Or perhaps just to put more pressure on Dinallo, NY Fed, et al? I’m guessing there is a better explanation for why the ratings agencies leaked the info like this, but it seems a bit fishy. Especially since they wouldn’t downgrade while Dinallo and company are still trying, albeit feebly. I’ve probably got this completely wrong, but if you could shed some light, I would be grateful. Thanks.