http://www.nakedcapitalism.com/2008/05/so-why-did-mbia-raise-11-billion-to-pay.html Sun, 22 Nov 2009 16:56:52 -0500 http://wordpress.org/?v=2.8.4 hourly 1 http://www.nakedcapitalism.com/2008/05/so-why-did-mbia-raise-11-billion-to-pay.html#comment-7737 Anonymous Thu, 08 May 2008 15:03:00 +0000 http://www.nakedcapitalism.com/2008/05/so-why-did-mbia-raise-11-billion-to-pay-executives-apparently/#comment-7737 Another case where moral hazard blows to the wind the executives play chicken with the markets daring them to downgrade. Another case where moral hazard blows to the wind the executives play chicken with the markets daring them to downgrade.

]]> http://www.nakedcapitalism.com/2008/05/so-why-did-mbia-raise-11-billion-to-pay.html#comment-7714 Richard Kline Thu, 08 May 2008 10:36:00 +0000 http://www.nakedcapitalism.com/2008/05/so-why-did-mbia-raise-11-billion-to-pay-executives-apparently/#comment-7714 The monolines haven't been able to pass the Downwind Test since January (as in, if you can smell the hog farm further than you can see it, it's too bid, well dead, or both). If our crisis was 'over,' I'd like to think that the public authorities would push them into run-off mode while moving to swap out their guarantees to a new and better capitalized concern. We don't see anything of the sort, ergo . . . . The monolines haven’t been able to pass the Downwind Test since January (as in, if you can smell the hog farm further than you can see it, it’s too bid, well dead, or both). If our crisis was ‘over,’ I’d like to think that the public authorities would push them into run-off mode while moving to swap out their guarantees to a new and better capitalized concern. We don’t see anything of the sort, ergo . . . .

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