http://downgradetheinsurers.wordpress.com/2008/02/23/ambac-bailout-hopes-excite-bulls/ Tue, 04 Mar 2008 11:30:06 +0000 http://wordpress.com/ hourly 1 http://downgradetheinsurers.wordpress.com/2008/02/23/ambac-bailout-hopes-excite-bulls/#comment-73 Marion Bills Sun, 24 Feb 2008 19:57:50 +0000 http://downgradetheinsurers.wordpress.com/2008/02/23/ambac-bailout-hopes-excite-bulls/#comment-73 It is no mere coincidence that the timing of the story occured as the S$P had broken support at 1330. It was classic short squeeze and you can thank CNBC for allowing themselves be the messenger of this manipulation. This so called deal has been discussed repeatedly and was no new news. I also agree that putting in 3 billion does not come close to providing the required capital to pay anticipated claims. This deal, if it is approved, by AMBAC and the rating agencies will simply prove the point that there needs to be greater oversight of the banks and the rating agencies. We have also learned that the plumbers at the Treaury Department were pulling the strings to get this announced. Those who wish to preserve the myth that the market will not go into bear territory will stop at nothing to manipulate the market. It is no mere coincidence that the timing of the story occured as the S$P had broken support at 1330. It was classic short squeeze and you can thank CNBC for allowing themselves be the messenger of this manipulation. This so called deal has been discussed repeatedly and was no new news. I also agree that putting in 3 billion does not come close to providing the required capital to pay anticipated claims. This deal, if it is approved, by AMBAC and the rating agencies will simply prove the point that there needs to be greater oversight of the banks and the rating agencies. We have also learned that the plumbers at the Treaury Department were pulling the strings to get this announced. Those who wish to preserve the myth that the market will not go into bear territory will stop at nothing to manipulate the market.

]]> http://downgradetheinsurers.wordpress.com/2008/02/23/ambac-bailout-hopes-excite-bulls/#comment-71 Walter Zweifler Sun, 24 Feb 2008 17:28:27 +0000 http://downgradetheinsurers.wordpress.com/2008/02/23/ambac-bailout-hopes-excite-bulls/#comment-71 Bank infusions into Ambac are less costly than loan portfolio write-downs. Distressed debt secondary markets are frozen - any transaction would define Market Value at much lower prices than most cash flow models suggest. Immediately most banks would have to raise additional equity. WE WILL BUY DISTRESSED MORTGAGES IN THIS ENVIRONMENT AND WANT TO TALK TO OTHERS WHO SHARE OUR ENTHUSIASM FOR THIS CONTRARIAN STRATEGY wzweifler@zweufler.com Bank infusions into Ambac are less costly than loan portfolio write-downs. Distressed debt secondary markets are frozen – any transaction would define Market Value at much lower prices than most cash flow models suggest. Immediately most banks would have to raise additional equity. WE WILL BUY DISTRESSED MORTGAGES IN THIS ENVIRONMENT AND WANT TO TALK TO OTHERS WHO SHARE OUR ENTHUSIASM FOR THIS CONTRARIAN STRATEGY wzweifler@zweufler.com

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